Panama Corporations

Shares can be of various classes, may have par value or not, and may be registered or bearer. There is no minimum capital requirement. Panamanian law requires a minimum of three directors. Names and addresses of directors must be indicated in the Articles of Incorporation. Citizens or juridical persons of any country may be appointed as directors. A president, a secretary and a treasurer are required. The same person may hold more than one office. There are no other filing requirements unless the Articles are changed or the corporation is merged or dissolved. .Panamanian law requires a local attorney to act as resident agent of the corporation. The annual tax on corporations is US $350.

Panamanian corporations offer most of the same benefits and advantages as US corporations-including limited liability and anonymity of ownership. The corporation is an attractive vehicle for purchasing or holding property, making an investment or conducting business.

General Partnerships

A General Partnership is permitted under the Commercial Code. The partners have unlimited liability.

Limited Partnerships

Limited partnerships (sociedad de responsibilidad limitada) are also permitted by the Commercial Code. The liability of each partner for the debts of the partnership is limited to the amount subscribed to but unpaid.

An Individual Limited Proprietorship (empresa individual de responsibilidad limitada) is set up in the same way as a limited partnership but there is only one member.. The business liability of the proprietor is limited to the amount of the assets committed.

Foundations

Foundations in Panama are available for the protection of assets. No business activities are permitted.

The minimum capital requirement is US$10,000. No accounts are necessary and an audit is not required.

Trusts

Panamanian trusts are deemed irrevocable unless otherwise expressly stated. The settlor, trustees and beneficiaries need not be Panamanian nationals nor resident in Panama. A Panamanian lawyer must act as an agent for the trust.

There are no registration or minimum capital requirements, or fees.

If a trust earns a taxable income in Panama, tax is levied directly on the trust and not on the trustee.

Contact us if you would like additional information regarding your business or investment in Panama. We can recommend qualified attorneys to assist you .