International Business Corporations(IBC)
Panamanian IBC's are gaining favor because most of the former British Colony tax havens have recently rolled
over on their clients, revealing, if not all, more than should have been revealed. Unless you are a
multi-million dollar corporation, Panama is the jurisdiction of choice. Panama is a 100% Tax Haven:
Non-resident Panamanian International Business Corporations (IBC's) do not pay tax on any of their foreign
source income (as indicated below), nor do they have any reporting requirements to the Panamanian government.
Panama Second Most Popular Jurisdiction:
Panama is the registered domicile for over 400,000 corporations & foundations, making it the second most
popular jurisdiction to incorporate in the world, next to Hong Kong.
No Reporting Requirements:
Panama does not impose any reporting requirements
No Taxes:
Panama does not impose taxes on non-residents.
Piercing the Corporate Veil Not Allowed:
Panama does not allow "piercing the corporate veil", so your corporate books are maintained 100% private
and confidential by law.
Anonymous Ownership Allowed:
Panama corporations share certificates can be issued in Nominative or Bearer form (Bearer Shares are
an anonymous form of ownership), with or without par value. Neither the directors nor the officers of
Panama corporations need to be shareholders.
No Capital Requirements:
Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital
must be fully paid.
Directors:
Every Panama corporation requires 3 directors/officers (President, Secretary and Treasurer). The
directors/officers can be either individuals or entities. Panama corporations directors, officers and
shareholders may be of any nationality and resident of any country. The directors names and identifications
must be presented in the public registry when the corporation is formed.
Nominee Directors:
We offer our clients the optional service of using our "Nominee Directors" for their corporation(s). For
purposes of confidentiality, most of our clients prefer that we provide nominee directors/officers for
their corporations. When we appoint nominee directors for the entities that we establish for our clients,
we always provide our clients with pre-signed, undated letters of resignation from the directors so that
our client can replace those directors at any time. There is no additional fee for the use of our nominee
Nominee directors.
Directors or Shareholders Meetings:
Annual general meetings of either shareholders or directors of the corporation are not mandated or required.
However, if meetings are held, they can take place anywhere in the world by proxy - via telephone, email or
other electronic means. Any resolutions passed are valid regardless of whether they are signed on different
dates or in different jurisdictions.
Corporate Books:
The Registered Agent is not required to keep any records for the corporation, however, every corporation
should maintain a minute book and stock register, which can be held anywhere in the world.
Subscribers:
Panama corporations must have two subscribers present at the public registry in order to be incorporated.
The subscribers are the individuals from our law firm that appear at the Public Registry with the articles
of incorporation to incorporate the corporation. By law, the subscribers have a right to own one (1) share
of the corporation. As soon as the corporation is established, the subscribers sign a document where by they
resign their rights to one (1) share of the corporation. This document is provided to our client along with
the corporate documentation.
Corporate Franchise Tax:
Panama corporations & foundations should pay a low annual corporate franchise tax of US$250 to remain in
good standing. The deadline for the tax payment depends on when the entity was formed. If the entity was
formed from 1 January to 30 June, then the tax is due on the 30th of June. If the entity was formed from 1
July to 31 December, then the tax is due on the 31st of December. If the tax is not paid on or before the
due date, the entity be charged a late penalty of US$50.00 . If the tax is not paid after the following
"deadline" period, the entity will be charged a second late penalty of US$250.00.
Convenience:
It is not necessary for the interested parties to be present in Panama for the purpose of establishing a
corporation. We can handle everything for you without you having to come to Panama.
No Business License Requirement:
Non-resident Panama Corporations do not require a commercial business license to operate business
internationally.
Re-Domiciliation:
Corporations from other jurisdictions may be "re-domiciled" to Panama, and vice-versa. Many people who have
corporations in jurisdictions such as the Bahamas and other British territories, are currently re-domiciling
their corporations to more private and secure jurisdictions such as Panama.
Corporate Seal:
A corporate seal is optional. We also offer corporate seals if you want one. Please see our Fee Schedule
for pricing details.
Legal Address Required:
When registering a new Panama corporation, it must have a legal physical address that is included in the
articles of incorporation. Our law firm provides a legal physical address as Registered Agent.
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