Panama Offshore Companies
Famous for the distance-reducing Panama Canal, the Spanish speaking Republic of Panama lies in Central America. The Republic of Panama forms the thinnest part of the landmass connecting North to South America. It was only in 1990 that democracy was returned to the country and since then, a long peaceful and prosperous period in its history is in progress. Today the Panamanian influence is one of the most preferred offshore financial centers.
Important Aspects
Every entity that registers as a Panamian Offshore Company gets a Financial Services License, the most important requirement for tax benefit seekers; this document is required for every financial deal of size. Such licenses with enormous freedom for financial services are not available easily in places others than Panama.
The economy has placed high importance in facilities and infrastructure for all the leading banks across the world. Complete liquidity is provided and cash flows are smooth, no restrictions and full freedom. English is accepted and all transactions are done in US Dollars without any sort of exchange controls or restrictions. You don’t need to submit audit and financial reports and are not required to disclose the beneficiaries of the transactions either. Panama doesn’t have double-taxation or tax-exchange contracts with any country. The official language is Spanish but the authorities provide certified translation services alongside.
Laws and Legislations
The Panama Corporation Law 32 of 1927, two people of whichever nationality can create a corporate entity within Panama Republic. The laws are derived from the Delaware Business Corporation Law 1926. Unlike laws in other tax-havens, Panamian law doesn’t distinguish between domestic and offshore companies in Panama. The tax system is simple and everybody pays according to the income generated on Panama soil only.
Three Directors and Officers each are the minimum requirement who can also be the officers in the role of President, Secretary, Treasurer, and other official positions. Directors and officials are not required to be the shareholders and can also be non-resident aliens. The position of Director can also be granted to a company or a person.
Advantages of integrating in Panama:
1.Your private information is guarded.
2.You don’t have to disclose the names of the beneficiaries.
3.You don’t have to file an annual return and it is not necessary to hold general meetings.
4.You are completely exempted from tax on any business.
Panama Government and Law
Spanish is the official language and English is also widely used. Panama boasts of approximately 2.4 million population of which 52% is urban. It is a safe, peaceful, war and terror free country where free and democratic elections with universal suffrage are regular. The executive branch of the government is at present composed of a President and two Vice- Presidents, elected for a five year term by direct election by citizens.
Panama’s legal system is a derivation from Spanish Civil Law with many Common Law influences, particularly regarding Company Law which is based on the Delaware Law. Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code.
