Panamanian
Corporations
If you are a professional advisor (a lawyer, accountant or financial
adviser) who evaluates the best way to handle the international
investment of your clients, or if you are a businessman intending to
achieve optimal benefits from your investment, you will find that
establishing a Corporation in Panama is a smart choice.
Since the early 1900s, Panama has been a commercial center for
communications and transportation and is currently one of the largest
free zones in the world.
Panama enacted Law No. 32 in 1927, which to a large extent was based on
the United States Corporation Law of the State of Delaware. This
law allows the owners of Panamanian Corporations to be free to manage
their businesses with very few limitations and requirements.
Some of
the advantages offered are as follows:
1.
Panama taxes are based on the territoriality principle. Income arising
from any corporation as a result of activities performed, executed, or
that take effect outside the Republic of Panama are not subject to
Panamanian taxes.
2. Any interest produced by bank deposits, whether in
local banks or in branches of international banks established in
Panama, is tax exempted.
3. The laws of the Republic of Panama prohibits that
accounting records, as well as correspondence or documentation
pertaining to any businessman associated to a Panamanian Corporation or
to such corporation be subject to the inquiry of foreign authorities
without prior consent of the Government of Panama.
4. Restriction or control of the currency exchange
rate does not exist. The US Dollar is the convertible currency,
which has par value with the Balboa, the local currency of the Republic
of Panama. Moreover, transfer of monies are not subject to
taxation and/or inspection.
5. One of the most outstanding advantages of
establishing a corporation in the Republic of Panama is that there is
no requirement to pay or deposit the capital stock prior to
incorporation. The capital stock will be paid as required by the
necessities of the corporation as well as the issuance of the shares
will be carried out as required.
6. It is permitted to change the domicile of any
foreign corporation to a Panamanian corporation (jurisdiction
continuance or change) by registering such foreign corporation at the
Public Registry of Panama.
