Regulation about Company Formation in Panama
Panama key Points
- Incorporation of company take just five to seven days
- At least three directors required for company incorporation which includes individuals or legal entity.
- Single shareholder is required for the incorporation of the company and there is no restriction on the nationality
- The minimum amount of share capital required for the incorporation of the company is USD $10,000 and it can be presented in any other currency as well.
- The amount of initial share capital of the company is not required to be paid at the time of company formation.
- By leveraging our experience and expertise, our team of experts will guide you through the step by step process for the company incorporation.
To begin incorporation of your Panamanian IBC we will require the following:
- Complete name of the company
- Complete details of the directors including the complete name, birth date, residence address and nationality
- Complete details of the shareholders include name and residence address
Documents you are required to provide:
- For successful company incorporation, the ID proof documents are needed which can be copy of valid passport or national ID card or driving license with photo.
- The residential proof is also required for the company incorporation and the document which are accepted are utility bills like the gas and electricity or statement of the bank that is not older than three months at the time of submission.
- The IBCs to be registered in Panama should have local registered office address where all the legal and official communications can be delivered and an authorized agent for the process. As part of the company incorporation service package offered by AbroadBiz, the registered office address and authorized agent support is included.
In order to incorporate company in Panama, at least three directors are needed. As the name and address details of the company directors are showcased in the public records, there is a provision to hire nominee directors for incorporating the company. The company which is incorporated in Panama has to hire three officers for the company which includes the president of the company, treasury and the company secretary, who can also be the directors of the company. The officers of the company be either an individual or a legal entity. There is no defined upper limit of amount on the appointment of the officers.
For successful incorporation of the company in Panama it is important that it has at least 1 shareholder who can be an individual or a legal entity. There is no restriction of nationality or local residence on the shareholder. The details of the company’s owners or the shareholders are not showcased in the public records as well as registry to maintain complete confidentiality.
The companies which are incorporated in Panama need not follow the process of organizing the annual shareholder meet, company directors’ meet or annual general meeting. The company is free to hold the meeting anywhere in the world as per the business requirements. In fact it can also be held over email, phone or other form of electronic medium. The decisions taken during this meetings are valid and accepted regardless whether it is signed and accepted on the same date or different dates or any other jurisdiction.
Annual Audit and Financial Return Requirements
The company which has been incorporated in Panama need not follow the standard practice of maintaining the financial statements, annual returns or prepare books of accounts. However, the directors of the company can maintain the accounts as per the business requirements at any location they are based in.
Share Capital requirements
- The minimum amount of share capital required for the formation of the company is USD 10000
- It can be further broken in 100 common voting shares equivalent to USD 100 each.
- It can also be broken into 500 common voting shares without any value. And minimum one share has to be issued.
- The capital of the company can be showcased in currency as per the business requirements.
- The share value of the company should either 1 or none.
- The share capital need not be deposited in the bank before the company formation process.