TAXATION

Taxation in Panama is strictly territorial, and provided the company's activities are carried out outside of Panama no tax will be levied, other than a US $150 Annual Franchise Tax which is payable to maintain the good standing of the company.

SHAREHOLDERS

A company should have a minimum of one shareholder, and the name of the subscribing shareholder will appear on public record.  This can, however, be a nominee.  Panamanian law does not require any details of any change in shareholders to be lodged after incorporation.  Bearer shares are permitted.

DIRECTORS

There are either three natural directors who hold the posts of president, treasurer or secretary, or one corporate director.  Details of directors are a matter of public record.

TIMESCALE

A company can be incorporated within 24-36 hours.  Please bear in mind, however, that it can take between 10-12 days for documents to arrive from Panama.

RESTRICTIONS
ON NAME AND
ACTIVITY

Companies can be formed for all lawful objects and the name should terminate in the words Sociedad Anonima (or SA) or in a word in any other language which denotes that it is of limited liability ("Corporation", "Corp", "Incorporated", "Inc", "AG" etc but not "Limited"). Words such as bank, insurance, re-insurance or trust cannot be used in any language.

ANNUAL
REPORTING

Provided no business is carried on within Panama there is no requirement to file returns with the Panamanian authorities nor to lodge any financial or other information unless the company is being wound up.

ADDITIONAL REQUIREMENTS

There is no requirement under Panamanian Law for a registered office to be maintained in Panama, but the company must maintain a Resident Agent who must be a Panamanian lawyer or a firm of Panamanian lawyers.  The minute book of the company and stock register, which is required under Panamanian law, can be maintained in any part of the world.