| Since 2001, the way Panama does its banking and | | | | the Commercial Code. |
| business has changed. Back then the term "offshore" | | | | Limited Partnership |
| was not present in their legislation and their banking | | | | Limited partnerships (sociedad de responsibilidad |
| laws stated that only income that was earned within | | | | limitada) may have two to twenty partners. There are |
| the country was subject to local taxes, and foreign | | | | no nationality or location restrictions. Minimum capital is |
| derived income was not subject to Panama taxes. | | | | $2,000 and maximum is $500,000. Registration of |
| After the revision of their present banking laws and | | | | partners' names takes place in the Public Registry |
| creation of new laws to protect their banks from | | | | Office, including how much capital each of them paid in. |
| money laundering and taxation loopholes, new ways of | | | | Partners can hire an independent administrator |
| banking and business are being implemented. If you're | | | | provided that he or she is also registered. Partnerships |
| interested in forming an offshore corporation in | | | | that have up to 5 members are not required to have |
| Panama, here are the types of offshore companies | | | | annual meetings, but those that have more members |
| that you can build: | | | | are required to have a meeting at least once a year. |
| Corporation (Sociedad Anonima) | | | | Filing of accounts or annual returns is not required. |
| This is the type of corporation that is utilized most | | | | Civil Partnership |
| often in Panama with offshore investors usually | | | | This is usually chosen by professionals who have their |
| selecting this option for their Panama busienss | | | | own firms, such as lawyers and accountants. Partners' |
| operations. A corporation is formed by three | | | | liability is unlimited. |
| subscribers or nominees (representatives in behalf of | | | | Commandite Company |
| absent foreign subscribers) who accomplish the | | | | This type of company is a fusion of partnership and |
| Articles of Incorporation in front of a notary and have | | | | corporation. One or more partners must have unlimited |
| the document noted at the Public Registry Office. A | | | | liability, while the remaining partners only have limited |
| local representative agent will be required which is | | | | liability according to how much capital they contributed. |
| usually the Panama law firm who is registering the | | | | This type of company is seldom used. |
| corporation on your behalf. Annual registration fees are | | | | Foundation |
| required to keep your corporation in good standing. | | | | The foundation is a self-ruling legal unit with no |
| Foreign Corporation | | | | members or shareholders. It is essentially used to |
| Foreign corporations can be registered in Panama by | | | | protect assets and it is not allowed to execute any |
| submitting these documents to the Public Registry | | | | business activities. A foundation is established by |
| Office: | | | | notarizing a private foundation charter and submitting it |
| - Articles of Association (notarized and translated in | | | | to the Public Registry. The private foundation charter |
| Spanish); | | | | should include the names of the foundation council |
| - A Board minute that authorizes registration in | | | | members, the property of the foundation and its |
| Panama; | | | | headquarters, and who their Panamanian agent is. |
| - Financial statements (most recent); | | | | Principles of operation and beneficiaries' names are not |
| - A certificate of confirmation from a Panamanian | | | | required to be filed. The required minimum capital is |
| Consul stating that the company is organized lawfully; | | | | $10,000. Accounts and an audit are not necessary. |
| - Notification of capital allotment to the Panamanian | | | | Capital taxes and annual registration fees are required. |
| operation. | | | | Trusts |
| Foreign corporations can hand over their positions of | | | | Trusts can be declared to be rescindable, but if they're |
| responsibility to Panama. If this happens, they will be | | | | not declared to be, then they're non-rescindable. The |
| governed by Panamanian laws regarding public policy. | | | | trustees and the one who settled the trust do not |
| Unregistered foreign companies that are operating in | | | | need to be citizens or residents of Panama, but a |
| Panama may face lawsuits, but these companies do | | | | Panamanian lawyer is required to act as an agent. |
| not have the right to file a lawsuit. | | | | There is no required registration nor capital |
| General Partnership | | | | requirements or fees. Documents may either be in |
| Partners have unlimited liability. This is allowed under | | | | English or Spanish. |