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Zelideth Pino | 2016-11-30

Panama has a territorial tax system, whereby only income generated in Panama is taxed and this applies to residents or non-residents, to corporations operating in Panama or overseas. Thus, corporations are not liable for income tax in Panama, unless they actually generate income within Panamanian territory. Interest bearing accounts are not taxable income in Panama.

The corporation will be registered within three to five days of checking availability of your chosen name.

Panamanian law requires three Directors of any nationality, who may be corporate entities. The full names of the Directors (no initials) and their addresses (home or office) must be submitted, together with incorporation details in the case of corporate directors.

It is required to have at least a President, Secretary and Treasurer, who may be the same as the Directors. We do not provide nominee Directors, full responsibility for the company lies with the beneficial owners and a liability release form would have to be completed.

The shares may be issued to bearer or to the name of a person or company, and our format Articles of Incorporation allows them to be interchangeable whenever you so wish. However, some banks will no longer accept to open accounts for bearer share corporations.

There is no requirement to disclose the name of the shareholders or beneficial owners, unless the companies are found to be involved in criminal activities, such as: drug trafficking, terrorism, arms trafficking, trafficking in human beings, kidnapping, extortion, fraud, and the laundering of money proceeds from these crimes; or if Panama has signed a Tax Treaty with the country of origin or residence of the beneficial owner and through official channels the government of Panama requires the information to be disclosed. In any of these cases, we are released from our confidentiality obligations and we shall cooperate fully with the authorities.

We request that a release form be signed by the beneficial owner and that we are kept appraised of his/her address during such time as we remain Resident Agents for the company. Any change of beneficial owner must be disclosed to us and we reserve our right to resign as Resident Agents at any time, if this is not complied with.

Apart from the release, we require the signing and Incorporation Questionnaire be completed, which we request that you send to us together with a copy of your passport and references, upon sending us the final instructions to incorporate a corporation or a foundation. References may be from your bank or from your accountant or lawyer.