Editors Note: This is the first in a series of legal articles written by a Panamanian attorney. This is not meant to replace legal advice and is provided as information only. Roberto Chocolaté strongly suggests you consult your own lawyer in all legal matters. These articles are meant as a guide only.
I would like to welcom Yasser (Alex) William Arosemena to the Retirement Detectives team. I hope you find his information useful. RC
How much does it cost to form a corporation in Panama and how long does it take?
A Panamanian Corporation is relatively inexpensive when you take into consideration the benefits that the client obtains by having one.
Fixed costs (which include the government fees, notary and inscription fees) are around USD$ 475.00. Legal fees charged by the attorney or law firm representing you may vary, depending on the purpose of the corporation, how complex the articles of incorporation are, use of nominee directors, etc.
Every year, a government fee of USD$ 300.00 is applicable, which is due before July 15th (for corporations registered between January and June of the previous year) or January 15th (for corporations registered between July and December of the previous year.
There are also legal fees applicable every year for services such as being Resident Agent (by law, there must be an attorney or law firm acting as resident agent of the corporation) and the use of Nominee Directors. Make sure to ask your attorney what those future costs will be.
Setting up a Panamanian Corporation usually takes approximately 3 working days, but delays in the Public Registry of Panama could take place.
In regards to the benefits I had mentioned, here is a short list of only some of the most relevant:
- Confidentiality: Since the applicable laws only allow the submission of accounting records, files or any other documentation to foreign authorities with appropriate authorization granted by the Courts of Panama and information-sharing treaties are limited mainly to drug-related offences.
- Asset Protection: Panamanian Corporations have the capability of holding assets internationally on a favorable tax basis.
- NO filing requirements: There are no requirements to file tax reports with the Panamanian government. Additionally, it is not mandatory to have bank accounts or maintain assets in Panama.
- Tax advantages: Income resulting from activities that take place outside the Panamanian Territory is not taxable under Panamanian law. Companies with employees in Panama and with activities and/or transactions that take place overseas do not pay income tax.
However, if you are looking for a structure that allows you to fully protect your assets, I recommend the Panamanian Interest Foundation as the best alternative.
Please contact me directly if you have any questions.
Yasser (Alex) Williams A.
Tel: (507) 263- 0345
E-Mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
