Panama Company vs Foundation

Panama Company vs Foundation

The formation and activities of a Panama Private Interest Foundation and Panama Corporation are...

Panama Foundations

Panama Foundations

The Panama Foundation Law was established in Panama in 1995. Panama Foundations are unique because...

Panama Company

Panama company have become increasingly popular despite the political and social difficulties that Panama experienced over the years. Panama is strategically located, can be easily accessed by air and has an environment that is conducive for business and undertaking foreign investment ventures. Panama’s well established and advanced telecommunications facilities have contributed to the development of Panama’s offshore product and by extension, the use of Panama offshore companies for transacting business internationally, thereby, making Panama one of the world’s most sought after offshore financial centers (OFC).

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Panama offshore company is regulated by the Panama Law on Corporations, which was passed on February 26, 1927. The Panama Corporation Law is one of the longest standing statutes for offshore companies in the world and for this reason, Panama company is given the level of credibility that they need as structures that are proven to be versatile and excellent for asset protection and tax savings.

The Panama Law on Corporations provides for simple Panama company registration, whereby Panama offshore companies can be formed by two or more persons that do not reside in Panama, regardless of their nationality. Panama offshore company may be formed to conduct any type of business as long as it is legal and in compliance with the Law. A Panama company is able to conduct business internationally, with the exception of within Panama, since in essence, true tax benefits are derived by an offshore company on the basis that its income does not originate from within Panama.

One of the basic requirements of Panama company incorporation is that, the subscribers of the Panama Company are required to present and sign the company’s Articles of Incorporation which shall serve as the company’s constitution. The Articles of Incorporation of a Panama Company must state each of the subscriber’s names and country of residence, the name of the company being registered in Panama and its general objectives. The name chosen for a Panama company can be expressed in any foreign language, but should not be similar to any other existent Panama offshore company and must contain a word or phrase that means corporation so as to differentiate it from any other type of business entity. The Panama offshore company’s Articles of Incorporation should also include the Corporate Capital amount as well as the number and par value of the shares into which the Corporate Capital is divided. The Corporate Capital of a Panama offshore company can be issued in any currency that is used as legal tender within Panama.

Other basic information include that must be contained in the Articles include the share split between the members of the Panama Company, the name and address of the registered agent, the company’s duration and any other important provisions concerning the operation of the Panama Company must be part of the information contained in the Articles. A minimum of three (3) Directors are required for Panama offshore company formation. The Articles of a Panama company may also be executed in any country and must be certified by a Notary Public.

Panama company is an ideal tool for conducting many types of business activities, such as shipping, marketing and professional consultancy. Panama companies are exempt from a number of taxes and as a result are just right for accumulating one’s earnings and maximizing profits.

A rather important feature of a Panama company is its ability to protect one’s assets. Assets such as real estate and valuable jewelry can be placed in the name of a Panama Company, thereby reducing one’s net worth and limiting costly litigation or marriage settlements. This enables a Panama company to serves a means of insuring one’s future, as well as that of his children or immediate family, as the funds or assets held by a Panama offshore company can be saved in a tax free medium and be used at a later date, during retirement, in the event of an accident or to provide funding for a child’s higher education when the time arises. Panama companies are limited liability companies and are separate from the personal assets of its owners.

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