Panama is the southernmost country of Central America. 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.
Advantages for foreign investors:
No obligation to pay income tax when its income is obtained from a source outside Panama. So, no income tax will be paid for the company’s operations or activities.
According to Panama Tax Laws, no income tax is paid for the following corporate activities:
Invoicing the sale of goods and merchandise through a Corporation’s office in Panama at a price greater than the one invoiced to the corporation in Panama for the same goods or merchandise, as long as those products or goods stay out of Panama;
Directing, through a Corporation in Panama, transactions that will become effective, consummate or perfect outside Panama; and
Distributing dividends and participations from Panamanian Corporations or other juridical persons when income is not produced in Panama, including the above mentioned situations.
Stockholders may be Panamanians or foreigners and may even be Panamanian or foreign corporations
One person alone can be owner of 100% of the corporate stocks comprising the entire corporate capital of a Panamanian corporation, after its incorporation and registration
No nationality or residence requirement for the Panamanian corporations’ Directors and Dignitaries
Meetings of the stockholders assembly or the Board of Directors may be held anywhere in the world and can be held via telephone, fax, email or any other electronic method
Corporate assets or capital of a Panamanian corporation may be kept outside Panama
Panamanian corporations may have any licit objectives and carry out any commercial or industrial activity
Formation of the company
Provision of registered office
Provision of director services (minimum 3 Directors and 3 Officers)
Provision of nominee shareholders (if requested and/or required)
Provision of company secretary
Secretarial, Banking and Legal Support