ADVANTAGES AND DISADVANTAGES OF INCORPORATING IN PANAMA

 

A. The advantages of organizing a Panamanian corporation are the following:

1. Panama has its corporation law since 1927 which means that it is a very stable legislation and the government has no intention of changing it.

2. Panamanian corporations can issue bearer shares and the shareholders can keep them on their possession. This means that the name of the owner of the corporation stays anonymous.

3. Panamanian corporation costs are low compared to other jurisdictions.

4. Panamanian corporations can have directors of any nationality and residence.

5. It is not mandatory to register the Powers of Attorney given by the corporation.

6. No income tax is paid or reported if the corporation operates outside Panama since Panama has a territorial Tax System.

7. Panama does not have exchange controls. The country has not signed tax treaties with any other country.

8. It is not mandatory to file annual Financial Statements

9. Panamanian corporations are not obliged to hold annual General Meetings of Shareholders or Directors.

10. Panamanian corporations may have accounts in any country and in any bank.

11. Redomiciliation to Panama of foreign corporations is allowed.

12. Shelf corporations are available in our offices.

 

B. The disadvantages of having a Panamanian Corporation are the following:

1. Panama is considered a "tax heaven" for some countries.

2. Names of the Directors and Resident Agent are available on the Public File.

3. Panamanian corporations cannot conduct business as a bank, agent, broker or insurance company unless they have the license to do so.

4. Changes to directors must be filed.

 

more articles