Panama Corporations

A Panama Offshore Corporation is a Panama company that was incorporated in the Republic of Panama. Panama Corporations are endowed with the features of an offshore company and are an effective vehicle for conducting business internationally. Compliant with the General Corporation Law, 1927, Panama Corporations can be used for conducting trade and shipping. Panamanian Corporations are versatile and can also serve as marketing, copyright protection, holding and investment companies and are not restricted from doing business in any country, with the exception of Panama. The source of income and business undertaken by a Panama Corporation should be done and derived outside of Panama. The General Corporation Law is the main corporate statute that regulates Panamanian offshore companies. The procedure for incorporating a Panama Corporations is fairly simple and should be done via a lawyer or legal firm that is licensed by the relevant authority in Panama to offer Panama Corporation incorporation services. Panama Corporations are required to pay renewal fees on a yearly basis. Panamanian Corporations are registered at the Panama Companies Registry and are not liable to corporate, capital gains, inheritance and income tax. A Panama offshore company is able to conduct business in any currency.

The internal matters and administration of a Panama Corporation are regulated by the Article of Incorporation. According to the General Corporation Law, the Article of Incorporation of a Panama Corporation must contain the name of the Panama Corporation, which should have a word or phrase indicating “corporation” and not be the same as or resemble the name of another corporation that has already been registered in Panama. The Article should also state the general objectives of the corporation, the value of the share capital, share split among members and the par value of the shares. In the event that shares are issued without par value, the corporation is required to satisfy the corresponding demands of the Corporation Law. The Panama Corporations may issue its shares in American dollars (USD), which is the legal tender of Panama, any other currency or in gold units.

The articles of incorporation of Panama Corporations must be certified by a Notary Public in Panama if they are not presented in the form of a public deed. Articles that were prepared outside of Panama must be made authentic by a Consul in Panama before any certification by a Notary Public can take place. Articles written in a language other than Spanish should be translated by an official translator.

Panama Corporations are able to sue and be sued in any court, make and use a corporate seal that bears the name and or logo of the Panama corporation, buy, hold and use real and personal property, lease property, apply for mortgages, sign contracts, borrow money, issue bonds, appoint its own officers and dissolve itself if necessary.

The shares of Panama Corporations may have a nominal or par value and can be fully or partially issued. A Panama Corporation can also issue and sell its authorization shares that do not have par value in compliance with its articles of incorporation. The share certificates of the Panama Corporation should indicate the corporation’s share capital, share distribution among the members, classes and types of shares that have been issued or remained unissued and the names of the shareholders.