PANAMA

Panama is a country situated in the Central America, between South and North America.
Territory ~76900 square km. Population of Panama is approximately 2,5 millions and its official language is Spanish. Panama's national currency is Panamanian Balboa. (1 US Dollar = 1.00000 Panamanian Balboa). Panama is a sovereign nation, that is, not governed or controlled by any other country in the world. Panama does not have any MLAT's (Mutual Legal Assistance Treaties) with any other country.

Panama may be called a hub in two dimensions: its territory joins North and South America, and the Panama Canal is a shortcut between North Atlantic Ocean (via Caribbean Sea) and North Pacific Ocean.

It's a constitutional democracy. The pillars of the local economy are banking, commerce, mining, and tourism. Though Spanish is the official language, English is widely used in business communications.

The best offshore tool in Panama: Panama IBC, Private Foundation

The clients who ordered from us private foundations are using this intricate anonymous instrument mostly for the asset protection and will substitution purposes. A Panamanian Private Foundation separates the Founder (Creator of the Foundation) from its property once and for all and guarantees the interests of the beneficiary. The Founder and the Beneficiary may be the same person. If the assets being transferred to the Foundation are encumbered, the creditors may contest it as a fraud. However, the rights of said creditors shall lapse in three years from the date of the contribution or transfer of assets to the foundation.

OUTSTANDING FEATURES:

Corporative legislation	Corporation Act year 1927, modified in 1997
Form of tax-exempted company	Corporation (further-Company)
Authorized business activities	Any activities not prohibited by the law. Providing of banking, insurance, and re-insurance, trust services is subject to special license;
Prohibited activities	No
Taxation	Company is exempted from all and any taxes and duties on profit, gained outside the territory of Panama;
Name of company	The name must not be identical or confusingly similar to the existing ones.Words Limited or Ltd are used for different kind of companies and cannot be used for offshore companies. The name can include words Corporation, Incorporated, Societe Anonyme, Sociedad Anonima, Gesellschaft mit beschankter Haftung or abbreviations Corp., Inc., GmbH, SA, AG. The words Assurance, Bank, Building society, Chamberof Commerce, Chartered, Cooperative, Imperial, Insurance, Municipal, Royal, Trust Company, Trustee Company or other words with similar meaning may not be used in the name of company;
Who executes the foundation documents?	At least two individuals whose functions are limited to signing of the foundation documents and nomination of the first director
Equity capital of the company	Equity capital of the company is established by declaration, no mandatory contribution is required and no minimum/maximum limits are set;
Recommended equity capital	10000 USD, divided into 100 shares with par value 100 USD;
Shares	Authorized emission of both registered and bearer shares with or without par value;
Shareholders - Minimum number - Nominal shareholders - Holders of trust equities	One natural or legal entity or bearers shares; Permitted; Permitted;
Does the law provide for non-disclosure of the information? - About actual owner of the company - About bank transactions	Yes, the information about the actual owner is not disclosed; Yes;
Directors - minimum number - nationality and citizenship - status	3, either natural or legal entity; All the powers apart from those falling into exclusive competence of shareholders (as determined by memorandum, articles of association and/or the law);
On the territory of Panama there has to be: - registered office - registered agent	Not required; Required;
Holding of the meeting of shareholders/directors	Meetings may be hold in any part of the world, also by means of telephone communication; Minutes may be kept at any place;
Mandatory - keeping of accounting records - annual account - presentation of auditors conclusion	No; No; No;
Information at disposal to the third party	Articles of association, names and addreess of the registration agent and directors;
Agreements on exemption from double taxation	None;
Currency control	No;
Term of incorporation	3 weeks;
Costs of registration of company	Look below
Financial year ending on:	anniversary date of incorporation
Possibility to purchase a ready-made company	Yes

Panama IBC

A Panama IBC can provide legal protection of assets and identity. Panama offers some of the most strict banking and financial secrecy laws available in the world. A Panama IBC is the ideal jurisdiction for international investors and businessmen to operate an offshore corporation.

Panama IBC law uses what we consider to be some of the most solid banking and corporate book secrecy laws in the world. These secrecy laws are engraved in its constitution. With Britain's proposed regulation for removal of bank and corporate book secrecy in Britain's offshore territories, it is clear that Panama remains the most secure offshore financial center - where privacy and confidentiality is not only respected, but also vigorously protected by constitutional law.

Panamanian S.A. Corporations Offer The Following Benefits:

- Non-resident Panamanian Corporations (Panama IBC) do not pay Panamanian tax on income
- No reporting requirements to the Panamanian Government
- No minimum capital requirement for establishing the corporation
- No restrictions to foreigners in forming or controlling Panamanian Corporations
- Corporate shares may be issued in "bearer" form (for privacy - he who holds the shares owns them) with or without par value
- Meetings of directors & shareholders may be held anywhere
- The accounting books of the corporation may be organized & kept anywhere
- The registered agent is not required to keep any records for the corporation

Banking or brokerage business conducted in Panama by non-resident Panamanian corporations is not considered actual trade within Panama. Thus, the income derived from these types of business transactions or investments (profits on stock trading or interest earned through the Panama IBC) is exempt from Panamanian taxes.

Generally, the only documentation on public record is the deed (or articles) of incorporation. This document only provides the names and addresses of the officers & directors plus the Registered Agent at the time of incorporation. The beneficial owners of the corporation are not required to be recorded in the Public Registry. Annual general meetings of either shareholders or directors of the corporation are not mandated or required. If meetings are held, they can take place anywhere in the world by proxy - via telephone, email or other electronic means. Any resolutions passed are valid regardless of if they are signed on different dates or in different jurisdictions.

Panama IBC

PANAMIAN INTERNATIONAL BUSINESS COMPANY FEES STRUCTURE

2) Nominee Directors Set Up Fee (3)

3) Resident Agent & Reg Address SUp Fee

4) Certificate of Incorporation with Apostille US$

5) Government Franchise Fee for First Year

TOTAL EUR 1,500

Renewal fees

EUR 1,500 per year per corporation for the nominee directors (3) and the resident agent (1) payable by anniversary date of incorporation, (law 6 of february 3rd of 2005) for the government after the first year (second year on) which is payable also by anniversary date of incorporation.

PRIVATE FOUNDATION

Our services and fees for Panamanian private foundations are:

• Establishment of a Private Foundation (government tax, preparation of standard Foundation Charter, Public Register Certificate, First Year Registered Agent Fee) - US$ 1,590
• Provision of Nominee Founder - US$ 690
• Provision of Protector for a year - US$ 1,150
• Nominee Foundation Council with issuance of a general Power of Attorney authenticated with Apostille in the name of the Beneficiary or any his/her agent for a year - US$ 2,450
• Preparation of individually tailored Regulations signed by the Registered Agent and countersigned by the Founder - US$ 750 .

Applicable legislation:

Law No 25 Regulating Private Foundations, 1995

Useful links:

Council for Investment and Development