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
The above information is just a brief outline of the processes required to form a company in Panama. Biz Latin Hub can assist you throughout the entire company formation process in Panama. For additional information, please get in touch with Craig here. We will be glad to assist you in answering your questions or concerns.