Panama - Procedure of Incorporation
Panama adheres to common law based on the English system. Panamanian IBC's are incorporated under Law No.32 of the 1927 Commercial Code which was amended in 1997.
Procedure of Incorporation:
The procedure for the formation of a Panama Offshore Company is fast and efficient. The general process is as follows:
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An application form is completed with details of preferred name and details of beneficial directors and shareholders (nationality, country of residence, address, profession etc)
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A scanned copy of the passport of the beneficial directors and shareholders is required
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An original proof of residence showing the name and address of the individual. This can be in the form of a utility bill or bank statement and must not be older than 3 months
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Two original letters of introduction. The letter can be from a bank, lawyer, accountant or similar profession.
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At this point Eltoma will issue an invoice for a Panama Company Formation. Upon receipt of money we start the incorporation process.
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The Memorandum and Articles of Association are prepared and sent to the Registrar.
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When the Memorandum of Association is accepted The Registrar of Companies will provide the company with a Certificate of Incorporation
Company Administration Guidelines
Shares and Capital Requirements:
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There is no minimum capital requirement
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Shares can be issued as either non-voting, preferred, registered shares nominative or bearer form with or without par value
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The minimum number of Shareholders required is one.
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Nominee Shareholders are permitted
Directors:
- The minimum number of Directors is three
- Directors can be any nationality and do not need to reside in Panama
- In addition Panamanian Companies are also required to appoint three officers, a president, secretary (see below) and a treasurer, however all three can also act as Directors
Restrictions on Name & Activity:
- Companies cannot use or end with the following; Limited, LTD, Finance, Trust, Foundations, Insurance, Bank, Trust or Insurance.
Local Requirements:
- A registered office is not required however all Panama Corporations must be registered by Agents holding offices in Panama.
- A Company Secretary is required and can be be either a natural or corporate person, of any nationality and is not required to be a resident of Panama
Confidentiality:
- Company documents are filed with the Mercantile Registry however a high degree of confidentiality is ensured with nominees permitted.
Timescale:
- Incorporation will take approximately 4-6 days.