- Panama corporations require zero capital requirements and no time limit in which to fully pay authorized capital.
- There are no reporting requirements or taxes for non-resident corporations in Panama.
- Company records are not required for corporations, however it is advised that minute books and stock registers are maintained and these can be located anywhere in the world.
- Corporate books are maintained with 100% privacy and confidentiality by law. "Piercing the corporate veil" is not allowed in Panama.
- Three directors or officers are required in Panama (President, Secretary and Treasurer). Directors or shareholders of a Panama corporation can be any nationality and resident of any country, but the names and identifications of each must be shown when the corporation is formed at the public registry.
- Nominative or Bearer Share certificates can be issued with or without par value and the directors and officers of a Panama corporation do not have to be shareholders. Anonymous ownership is therefore permissible.
- Director or shareholder AGM's are not mandatory. However, if necessary, meetings can be held by proxy anywhere in the world and any resolutions that are passed are deemed valid regardless of jurisdiction or date.
- In order to be incorporated Panama corporations must have two subscribers who must appear at the Public Registry. By law, subscribers are entitled to one share.
- A "taza unica" or flat annual corporate franchise tax to the value of US$300 is required to be paid, the payment of which depends on the date the entity was formed. If the tax is not paid on or before the due date, the corporation will be charged a penalty fee of US$50 per year that the tax is not paid. Failure to pay the tax after the next deadline period results in a second penalty of US$300.
- Commercial business licenses are not required for international business operations for non-resident Panama corporations
- Re-domiciliation to Panama is increasingly common. For those corporations seeking a more secure and private jurisdiction, such as those who have corporations in the British territories, they may be "re-domiciled" to Panama.
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Panama Corporation Facts
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