Advantages of Panama Corporation

  • High level of asset protection
  • Financial privacy
  • No minimum capital requirements. A corporation may operate without any issued share capital requirements
  • Both registered and bearer shares are allowed
  • Reduction or elimination of income taxes
  • No inheritance, succession or gift taxes
  • All Panamanian companies must appoint a registered agent, but there is no requirement for a local registered office. This function more often is carried out by a local attorney or a firm of attorneys
  • Information about owners and directors of the company remains confidential and is not kept on public record
  • There must be at least three directors, who need not be nationals or residents of Panama
  • No requirements as to the number of shareholders, and no nationality restrictions
  • No annual tax return requirements
  • Every corporation must have a share register and minute book which may be kept anywhere. Names and addresses of directors must be on record at the Public Registry
  • Protection from inflation
  • No currency exchange control and complete freedom to transfer funds
  • No International Trade tariffs
  • No taxes on capital (stocks, bonds and other investments) held by Panamanian corporations
  • No accounts or annual summaries have to be filed with the Government, with the exception of the annual franchise tax filed by the registered agent.
  • The Colon Free Trade Zone offers unique opportunities for the duty free storage, repackaging and reshipment of goods of all sorts.
  • No bureaucracy
  • Local Government concessions, subsidies and support
  • No limitations on the amount of import/export
  • Unless otherwise specified in a company's articles/bylaws, there is no legal obligation to hold specific annual meetings. If such meetings are held, they do not have to be in Panama.
  • The name of the corporation can be expressed in any language and shall include a word, phrase or abbreviation to indicate that it is a corporation as distinguished from a natural person or partnership
  • The most common endings include S.A, Corp., Incorporated, Inc. The words Limited or Ltd. are not sufficient by themselves.
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The IMF has reported that Panama was one of the fastest growing economies in the world last year.
Cable & Wireless has announced that its principal operations in the Channel Islands, the Caribbean, Panama, Macau, and Monaco are expected to invest more than USD 400 million in Caribbean telecommunications development.
The IMF concluded the 7th Annual Regional Conference on Central America, Panama and Dominican Republic and examined how globalization and economic integration is impacting Central America's tax structures.
The President of Mexico Felipe Calderon has initiated talks with Panama regarding a free trade agreement that has been awaited for a long time.
Panama's long-term sovereign credit rating has been raised by Standard and Poor's to BB+ from BB. This new rating is based on strong economic growth of Panama and continued improvement in fiscal health of its government.
Recently, a new law was passed by Panama's National Assembly to give multinational companies that perform certain tasks a significant tax break. As a result, according to a company specialising in investment property in Panama, the country's real estate sector is expected to experience an unprecedented boost.
The WTO has announced completing a Trade Policy Review of Panama and published the results of the review. The report suggested that the rationalization of assistance programmes and the simplification of the trade regime would help Panama to sustain the economic growth.
Economic growth in Panama is expected to exceed last year's 8.1% because of a strong investment climate, a dynamic services sector and the Panama Canal expansion programme.
The Trade Promotion Agreement has been signed by Panama and the United States to eliminate tariffs and other barriers to the trade in goods and services between Panama and the US.
The Panama Canal Authority (ACP) held a public hearing in Balboa, Panama, with the participation of fourteen representatives from shipping and government.
Panama banks Banco General and Banco Continental have come to the agreement to merge. This merger will create one of the largest financial services companies in the region. The merger is expected to close during 2007.
Panama hopes to become Argentina's replacement on the UN Security Council after Latin American and Caribbean Group (GRULAC) of the UN Security Council delayed as far as some English-speaking Caribbean members were reportedly upset about not being adequately involved in this process.
At a meeting of Panama's President and Executive President of the Central American Bank for Economic Integration (CABEI) agreed that by the end of 2006 Panama will become an 'extra-regional' partner of CABEI. This status will provide Panama with the access of funding of about USD 60 million.
Chile and Panama signed the free trade agreement that opens up 92.5% of the Chilean economy to Panamanian producers. Now most Panamanian products will enjoy a zero tariff when entering Chile's market.