Establishing a Corporation in Panama
Starting an Asset Protection Strategy
As the economic situation in Panama continues to improve, many foreign investors are attracted to the idea of setting up corporations there. Besides being a place of great business opportunities, the laws governing the establishment of businesses are also not very demanding. In fact, with anticipation of the forecasted economic boom in the near future, the government welcomes foreign investment with open arms.
For the constitution of a panama corporation, the organizing party is required to arrange for two of its members to be present before the Public Notaries of Panama. In any case, the Public Notaries are direct representatives of the government and it is an obligation for foreign investors to apply to them for the purpose of setting up a corporation. Otherwise, a trust company or professional management firm can also be depended upon to be the intercessor of such affairs.
A proposal has to be drafted out to be submitted upon application and such a compilation of documents should include the following information:
* Name of the corporation This has to be submitted together with a few alternatives, in case the name is already being used. The name should also be accompanied by a corporate ending to signify that it is an incorporated company.
* Nature and objectives of business The description of business objectives and activities should also be clearly stated in the written form. An elaborate statement is usually required.
* The issuance of shares All types of shares can be issued, with different classes, voting and non-voting, bearer or normative forms, etc.
* Board of Directors For the establishment of a corporation, at least three directors are required and there is no restriction in terms of nationality, occupation or race. The appointment of nominee directors is also allowed.
* Officers The corporation has to be represented by at least three officers, namely, a president, a treasurer and a secretary. Other lower ranked officers can also be listed.
* Domicile There is no restriction as to where the corporation should be domiciled, but naming Panama as the domicile has its advantages since it is a free trade zone.
* Duration of the company The life of a corporation can only be either limited or unlimited. It is a common practice for corporations to be defined as unlimited.
About the Author
Smythe Bradley is an expat living in The Republic of Panama. He has published many articles on offshore asset protection in panama, panama visas and residency, as well as many other expat issues
Tell others about
this page:
Comments? Questions? Email Here