Panama Real Estate Blog

If you are looking to establish a business in Panama, you will have to operate through a local agent, as well as a licensed Panama Attorney. The formation of a corporation entails the filing of the application with the public registry, which is administered by the government of Panama. A minimum of two natural persons is required for the establishment of a corporation. The process of formation can be done in two days, but likely taking a little longer.

Name selection of the corporation is not limited entirely, but must be different enough from any existing name to avoid any potential confusion. The suffix of the corporation cannot include LLC, Ltd or Limited unless the actual corporation is a LLC and duly registered as such. Words pertaining to financial services, in particular the banking sector are prohibited within the name.

References are required when establishing the corporation, and normally a bank and a trade reference will suffice. The bank reference must state that an account is active in the name of the corporation, and the bank must be capable of submitting international wire transfers. Change of ownership of a corporation in Panama has no legal requirement. If it is a Panama bearer share corporation, then a bill of sale as well as the transfer of shares to the new owner is sufficient.

There is no tax liability for the organization if the income is derived from a foreign source, there is however an annual fee payable by the corporation, which is not too excessive. Bank interest and stock market gains (when dealing with Panama Corporation stock) does not draw any income tax liability either.

The establishment of a corporation in Panama attracts the service fees of the firm and some statutory government charges. It would be recommended to investigate the fees and processes of establishing your corporation in Panama with a specialized firm dealing in this subject area.

Liked this post? Subscribe to my RSS feed and get loads more!