Panama Offshore Corp Registration, as mentioned before, is regulated by the Law 32 of 1927. As a main rule, the law in the Republic of Panama allows the registration of two types of corporations:
A: Onshore Corporations: business activities are (also) carried on in the Republic of Panama – this means e.g. that these corporations deal with Panamanian corporations, carry on manufacturing or service activities within the country (that means that part of their income and profit is produced in Panama)
B: Offshore Corps: all of their business activities are carried on outside of the Republic of Panama. The name “offshore” indicates the type of business. In this case, the panama offshore corp can carry on any type of international trading, manufacturing and service activities tax-exempt (yes, with 0% tax paid), but exclusively outside of the Republic of Panama.
Further privileges of the Panama Offshore Corps:
- book-keeping is not compulsory
- financial reporting is not compulsory
- obligation to pay taxes: 300 USD per year (irrespectively of the realized profit of the company)
- the identity of the owner(s) is protected by strict laws – is impossible to track down
- possibility of opening a bank account all over the world
- registration of an offshore corp in Panama is allowed to any private individual or legal entity of any nationality
From the moment on when the offshore corp launches activities that produce income within the Republic of Panama, the corporation becomes taxable, the coporate profit tax is aprox. 20-30%. The corporation, moreover, looses its offshore status: both bookkeeping and financial reporting become compulsory towards the Panamanian Public Authorities.
Accordingly, the Panamanian laws themselves make Panama offshore corp registration possible under such conditions that not only cover the identity of the owners of a Panamanian offshore corporation but also dispense them from all the annoying record keeping and registration work.
Some interesting facts about the Panama Offshore Corp registration:
- the definition of the business is not necessary – the offshore corp is free to choose its business activity
- not compulsory to have local business or legal representatives
- no local employee required
- no local bank account required – the Panama Offshore Corp can open bank accounts anywhere in the World
- minimum paid-up capital not required
- the Panama Offshore Corps are registered with a capital of 10,000 USD (this amount does not have to be paid up neither at the foundation nor later)
- the Panama Offshore Corps are registered by two panamanian citizens, who at once resign their ownership and transfer it to the “real” owners, namely You
- the shareholder can even be one single individual or legal entity
- the board of directors need to be at least 3 individuals (Director President, Director Secretary and Director Treasurer)
- NOTE: all corporate-related actions/business/contracts need to be signed by the President or the Secretary. This is important while You need to choose the position for yourself correctly in order to be able to sign all required docs on your own in the future. In most of the cases one of the aforementioned directors’ signature is enough to have the contract approved officially.
- the board meetings can be held anywhere in the World, even on phone
- the registration of the Panama Offshore Corp takes 4-5 business days
- all the relevant company papers and documents are delivered within 20 daysto the owner
Among others the aforementioned favorable Offshore Corp Registration Rules resulted in the pretty high number of the so far registered Panama Offshore Corps - namely 439,139 offshore companies have been registered up to date in the Republic of Panama.
You surely have thought about why Panama allows offshore corp registration. Well, if you calculated how much income has been generated by the offshore business in Panama (439,139 * 1,100 USD) than You won’t be surprised. And the permanently growing number of offshore corps do pay a 300 USD fix tax each and every year afterwards till their liquidation.
A: Onshore Corporations: business activities are (also) carried on in the Republic of Panama – this means e.g. that these corporations deal with Panamanian corporations, carry on manufacturing or service activities within the country (that means that part of their income and profit is produced in Panama)
B: Offshore Corps: all of their business activities are carried on outside of the Republic of Panama. The name “offshore” indicates the type of business. In this case, the panama offshore corp can carry on any type of international trading, manufacturing and service activities tax-exempt (yes, with 0% tax paid), but exclusively outside of the Republic of Panama.
Further privileges of the Panama Offshore Corps:
- book-keeping is not compulsory
- financial reporting is not compulsory
- obligation to pay taxes: 300 USD per year (irrespectively of the realized profit of the company)
- the identity of the owner(s) is protected by strict laws – is impossible to track down
- possibility of opening a bank account all over the world
- registration of an offshore corp in Panama is allowed to any private individual or legal entity of any nationality
From the moment on when the offshore corp launches activities that produce income within the Republic of Panama, the corporation becomes taxable, the coporate profit tax is aprox. 20-30%. The corporation, moreover, looses its offshore status: both bookkeeping and financial reporting become compulsory towards the Panamanian Public Authorities.
Accordingly, the Panamanian laws themselves make Panama offshore corp registration possible under such conditions that not only cover the identity of the owners of a Panamanian offshore corporation but also dispense them from all the annoying record keeping and registration work.
Some interesting facts about the Panama Offshore Corp registration:
- the definition of the business is not necessary – the offshore corp is free to choose its business activity
- not compulsory to have local business or legal representatives
- no local employee required
- no local bank account required – the Panama Offshore Corp can open bank accounts anywhere in the World
- minimum paid-up capital not required
- the Panama Offshore Corps are registered with a capital of 10,000 USD (this amount does not have to be paid up neither at the foundation nor later)
- the Panama Offshore Corps are registered by two panamanian citizens, who at once resign their ownership and transfer it to the “real” owners, namely You
- the shareholder can even be one single individual or legal entity
- the board of directors need to be at least 3 individuals (Director President, Director Secretary and Director Treasurer)
- NOTE: all corporate-related actions/business/contracts need to be signed by the President or the Secretary. This is important while You need to choose the position for yourself correctly in order to be able to sign all required docs on your own in the future. In most of the cases one of the aforementioned directors’ signature is enough to have the contract approved officially.
- the board meetings can be held anywhere in the World, even on phone
- the registration of the Panama Offshore Corp takes 4-5 business days
- all the relevant company papers and documents are delivered within 20 daysto the owner
Among others the aforementioned favorable Offshore Corp Registration Rules resulted in the pretty high number of the so far registered Panama Offshore Corps - namely 439,139 offshore companies have been registered up to date in the Republic of Panama.
You surely have thought about why Panama allows offshore corp registration. Well, if you calculated how much income has been generated by the offshore business in Panama (439,139 * 1,100 USD) than You won’t be surprised. And the permanently growing number of offshore corps do pay a 300 USD fix tax each and every year afterwards till their liquidation.
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