As outlined in one of our Panama articles, there are many advantages for establishing a legal entity in Panama, and when doing so you need to ensure that you select a competent and professional legal company to help establish your entity and to ensure that you are receiving value for money.
To help we have outlined below what you should expect from your service provider. Your initial fee should include the total cost of incorporation in Panama, including:
- The articles of incorporation
- The certificate of good standing and their respective translations into English
- All documents duly authenticated
- Appointment of the company directors
- The issuing of the General Power of Attorney to allow a shareholder or an appointed officer to act on behalf of the corporation
Additionally, the fee should cover the following legislated expenses:
- Notaries fees
- Capital registration tax on the basis of authorized capital
- Annual franchise fee payment
- Resident agent fee for the first year of incorporation
- Authentication legal fees
- An English translation of the articles of incorporation
- Up to two (2) certificates of shares issued to the shareholders of the corporation
- Documents delivery expenses
Forming a Company in Panama – Directors-Officers Appointment Services
The law in Panama establishes that all corporations must be formed with a minimum of three (3) directors and officers. These generally include a president, secretary and treasurer. The directors can be named by the client irrespective of their nationalities. However, in order to guarantee greater privacy, these individuals can be designated by your service provider in order to comply with the law (these can be provided by Biz Latin Hub).
Forming a Company in Panama – General Power of Attorney
When using a board of directors, the shareholders will need a General Power of Attorney in order to control and act on behalf of the corporation. In this case, it is suggested, but not required, that a separate document be issued, duly authenticated and apostatized. The power of attorney will grant the designated shareholder power to open bank accounts, sign contracts and/or make any other business decisions on behalf of the corporation.
General Requirements to form a corporation in Panama:
- Provide three (3) possible names of the corporation in order of preference
- Name(s) and address(es) of all of the Shareholders
- Name(s) and address(es) of the directors/officers namely president, secretary and treasurer (if client wishes to appoint them; the same person may occupy more than one position within the corporation and the corporation may have additional officers such as vice presidents, etc.
- ID or passport copy of the shareholders and directors/officers
- Physical address where corporate documents will be sent
- Phone numbers of all shareholders
The following documents should be included in the Incorporation Package:
- Notarized copy of the original articles of incorporation, duly authenticated by Apostille;
- Official translation into English of the articles of incorporation, duly authenticated by Apostille, if desired
- Original certification of incorporation issued by the Panama Public Registry, stating that the corporation is in good standing. This must be duly authenticated by Apostille.
- One (1) or two (2) certificates of shares
- Two (2) assignments of subscription of shares
- Initial minutes
- Official government receipt for the first annual franchise tax payment
Need More Information on Doing Business & Forming Companies in Panama?
Offshore strategies can have a great impact on a company, taking into account that offshore structures are very well alive. However, with the repressive measures and the global offensive towards fiscal transparency, it is increasingly important for you to include onshore structures in your expansion plan.
The adoption of the onshore-offshore or “midshore” strategy is the way forward today. The Biz Latin Hub Group is a specialized legal, accounting and back office firm that can provide you with tailored advice about the best business expansion plan in Panama and/or Latin America.
Contact us now for personalized support.
Unsure about how to apply for an investor’s Visa in Panama? Check out this informative video to learn more.
