History of Panama

The Republic of Panama is located in the center of the American continent, where North and South America meet. Already part of Colombia, the country declared its independence in 1903. Today Panama wants to protect its environment (at the expense of national defense), and for good reason: the country is, in proportion, the national parks of the world.

Panama as an offshore center

Panama is an excellent destination for offshore business of import / export, oil and mining, but is not ideal for trade with Europe. The country has the largest free trade area in America (the Colon Free Trade Zone) that gives total tax exemption.

The different entities offshore in Panama are available:

  • Panama Corporation does not require a minimum capital and requires the appointment of three directors and at least one partner. Its creation must be approved by a notary and the Office of the Public Registry.
  • Panama Limited Partnership: requires a capital of between 2 000 2 500 000 dollars, and the names of all members must be registered in the Company Register.
  • Private Company: liability of shareholders is limited to the amount allocated.
  • Panama Trust: to solve a Panamanian trust, investors should be of foreign nationality, but must have a Panamanian lawyer.
  • Panama Foundation: allows property to be held, but does not allow the exercise of a commercial activity. The minimum capital is USD 10,000.

Panama Summary

Panama entities can be used to bill the United States and South America and Asia, but are not suitable for use in Europe (particularly France, Germany and Italy). Since Panama has a relatively poor international reputation and is strongly associated with fraud and evasion of bills they are likely to be rejected by the tax authorities and be subject to punitive taxation measures.

Types of companies Panama

The creation of a company in Panama takes about nine days and involves six steps. There are only two types of companies in Panama.