Panama Offshore Companies

Panama offshore companies are governed by the general Corporation Law of 1927 and are known as Panama Corporations or Panama Non-Resident Companies. The Corporation Law for the Panama offshore company contains the legal provisions for company formation in Panama of companies that wish to be registered in Panama but operate solely outside Panama.

In addition to regulated citizenship by investment programs open doorways to better living and business earnings. A provides safety and gives access to new markets. In addition to agent services like offshore shelf companies and formation, second citizenship allows for asset protection and existing low tax incentives.

Panama offshore companies are popular in the offshore world because the Corporation Law for Panama companies is one of the longest standing in the region. Panama has also been experiencing tremendous economic growth, lots of natural resources, and an expanding tourism sector and as a result is known for economic stability which is a decisive factor in company formation offshore.

Panama corporations that serve as Panama offshore companies enjoy tax benefits of being exempted from all taxes that are normally applied to companies in Panama (Panama based companies). These taxes from which Panama offshore companies are excluded include capital gains tax, income tax and corporate tax, provided that none of the Panama offshore company’s business is conducted in Panama and that none of the property that it owns is situated in Panama.

Annual maintenance fees are however expected to be paid to the government by Panama offshore companies. These yearly fees pay for stamp fees paid in maintaining companies in good standing at the registry and failure to do so over a period of time may result in the striking off or removal of a Panama offshore corporation, or the payment of late penalty fees, as may be decided by the relevant authorities for offshore companies Panama.

Panama company formation is done by a practicing lawyer who is based in Panama. To incorporate companies offshore in Panama, three members are needed. These include a Secretary, a Treasurer and a President. Upon incorporation, Panama offshore companies are issued with a Certificate of Incorporation by the Registrar of Companies, who has the responsibility of registered the name and assigning a registration number to every Panama Corporation. Offshore incorporation in Panama can take just a few working days and is generally a very efficient and reliable process.

Panama company incorporation rules require offshore companies Panama to have a constitution which is embedded in the memorandum and articles of association. Special clauses can be adapted to the articles of a Panama corporation for the purpose of running the company according to the specifications set out and desired by the members of the company. Offshore companies in Panama are required to notify the Registrar of any changes made to the constitution through the agent.

Panama offshore incorporation is undertaken for various reasons. Some individuals may wish to use the Panama corporation to insulate their assets from lawsuits and other risks. Businesses may wish to expand their services to other countries and may require an entity that provides a tax shelter because it is tax free, such as the Panama offshore company. Panama offshore companies also provide for flexibility in management as shareholding and director positions can be changed accordingly to meet the needs of the company.

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