Panama

LOCATION & LEGAL SYSTEM

Panama's history has been shaped by its strategic location between the Pacific Ocean and the Caribbean and there can be no-one who is not aware of the strategic importance of the Panama Canal.

Panama is a constitutional democracy with a legal system based on civil law which allows for judicial review of legislative acts in the Supreme Court of Justice and, with reservations, accepts compulsory ICJ jurisdiction.

ECONOMY

Panama's economy is based primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-01. The government plans public works programs, tax reforms, and new regional trade agreements in order to stimulate growth.

PANAMA IBC

A Panama IBC can provide legal protection of assets and identity. Panama offers some of the most strict banking and financial secrecy laws available in the world. A Panama IBC is the ideal jurisdiction for international investors and businessmen to operate an offshore corporation.

Panama IBC law uses what we consider to be some of the most solid banking and corporate book secrecy laws in the world. These secrecy laws are engraved in its constitution. Panama remains the most secure offshore financial centre - where privacy and confidentiality is not only respected, but also vigorously protected by constitutional law. Panama is a genuine international trade and banking centre that is well known and respected throughout the world.

Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today. The Panama Foundation is generally utilized by people who wish to control and maintain ownership of foreign corporations, however, they do not wish to do so directly due to the Controlled Foreign Corporation (CFC) rules in their home countries. Instead of holding the corporation's shares in their personal name or in bearer form, they establish a Private Interest Foundation in Panama that holds or owns the shares of their foreign corporation. The objective is to remove ownership from their personal name, to the name of a foreign entity whose ownership is anonymous. If this interests you please contact us to discuss.

Panamanian S.A. Corporations Offer The Following Benefits:

• Non-resident Panamanian Corporations (Panama IBC) do not pay Panamanian tax on income

• No reporting requirements to the Panamanian Government

• Annual government fee for non-resident Panamanian Corporations is only $150

• No minimum capital requirement for establishing the corporation

• No restrictions to foreigners in forming or controlling Panamanian Corporations

• Corporate shares may be issued in "bearer" form (for privacy - he who holds the shares owns them) with or without par value

• Meetings of directors & shareholders may be held anywhere

• The accounting books of the corporation may be organized & kept anywhere

• The registered agent is not required to keep any records for the corporation

Banking or brokerage business conducted in Panama by non-resident Panamanian corporations is not considered actual trade within Panama. Thus, the income derived from these types of business transactions or investments (profits on stock trading or interest earned through the Panama IBC) is exempt from Panamanian taxes.

Generally, the only documentation on public record is the deed (or articles) of incorporation. This document only provides the names and addresses of the officers & directors plus the Registered Agent at the time of incorporation. The beneficial owners of the corporation are not required to be recorded in the Public Registry. Annual general meetings of either shareholders or directors of the corporation are not mandated or required. If meetings are held, they can take place anywhere in the world by proxy - via telephone, email or other electronic means. Any resolutions passed are valid regardless of if they are signed on different dates or in different jurisdictions. There is a two hundred and fifty dollar prepaid tax required by the government upon the establishment of your company that must be collected in addition to the setup fee.

INCORPORATION TIMESCALE/NAMES

Suffixes such as Limited, Ltd, Incorporated, Inc, SA or most others are permitted. There are few restrictions on names. Allowing for time differences, names can be checked and reserved instantly and incorporation takes place on the same or the next day. However, even though we use Couriers it can take up to 2 weeks for documents to arrive from Panama and for this reason we do try to keep a few stock companies.

FEES FOR PANAMANIAN IBCs

We charge £695 to incorporate a Panamanian Company. This includes the first year’s registered office and registered agent fees and all government fees. Thereafter there is an annual fee (due on the anniversary of the formation) of US$570 again including registered office, registered agent and government fees.

We can help and advise you in respect of the opening and management of bank accounts and the provision, if required, of company officers or managers.

HOW TO ORDER

Simply call us on 01952 270270 or send an email to:

ymf@arcorporatesecretaries.co.uk

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Prices are subject to change.