Panama Company Formation

Live Chat by LivePerson

ENGAGEMENT COSTS

Year 1 incorporation US$ 2,400*

Year 2 incorporation US$1,500 *

Nominee shareholder
US$1,800**

Company de-registration
US$1,450

* Includes government licence fees, registered office for 12 months, Company secretary fees for 12 months

**Excludes US$1,100 refundable deposit.

If properly structured, Panama company formation allows global entrepreneurs to legitimately conduct international business exempt from taxation. The following information will help you determine whether Panama company formation is the optimum corporate structure to fulfill your international business objectives.:

Advantages of Panama company formation

Panama company formation is cost-effective and fast. Panama company formation has no minimum capital requirements.

If properly-structured, a non-resident Panamanian company is legally tax-exempt on income derived outside of Panama. However, an annual franchise tax of US$250 is payable in lieu of corporation tax.

Following Panama company formation, it is not necessary to file financial reports or tax returns, provided the company's activities occur outside Panama.

A preferential property tax rate of 1% is offered to property owners who willingly update the value of their property (versus the usual 2%).

Panama is a member of the Free Trade Area of the Americas (FTAA) which makes it an optimal country to enter the American market through.

Panama was rated 4th by Foreign Direct Investment Magazine as a place that has the best foreign investment opportunities in the world.

Government plans include implementing a free wireless internet system across the island, which will significantly reduce the cost of international communications and facilitate expatriates and tourists communicating with their home countries.

It is easy to open global corporate bank accounts to support Panama company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Disadvantages of Panama company formation

A minimum of two shareholders and three directors are required for Panama company formation. Corporate directors are permitted. The shareholders and directors can be of any nationality. In addition, a President, Treasurer and Company Secretary is required for Panama company formation. Following Panama company formation, shareholders and directors details are available for public viewing at the Mercantile Registry.

Panama is negatively perceived in international business. On top of being labelled a tax-haven, Panama is poorly ranked at 84th in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

Panama is negatively ranked as the world's 60th freest economy in the Heritage Organisation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

Due to the high level of bureaucracy in the country, doing business in Panama is a time consuming and tedious process. According to the World Bank's Doing Business 2010 Survey, Panama is the world's 77th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

Considerations for Offshore Company Formation

Offshore companies can be an ideal, tax-efficient vehicle for entrepreneurs to conduct their international business. When selecting an offshore jurisdiction, it is important to evaluate variables such as i) its international reputation for conducting business, ii) legalities that govern investor activity iii) the stability of its economy iv) the political stability of the market.

While offshore corporations can have the significant advantage of legitimately minimising tax obligations, there can also be the disadvantage of carrying the tax haven stigma associated with some jurisdictions. More information on Healy Consultants offshore company services can be found on the following pages:

Offshore company set up

ii)

Offshore company incorporation

iii)

Offshore Tax Planning

iv)

Offshore Company registration

Investing Offshore

Contact Us

For additional information on Panama company formation, email email@healyconsultants.com or call us at (+65) 6735 0120.

Back to Americas Company Incorporation page.

Back to Home page.

Buy a copy of the Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com