Procedure of company registration
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:
- An application form is completed with details of preferred name and details of Beneficial Directors and Shareholders (nationality, country of residence, address, profession etc).
- A scanned copy of the passport of the beneficial directors and shareholders is required.
- 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.
- Two original letters of introduction. The letter can be from a bank, lawyer, accountant or similar profession.
- At this point Eltoma will issue an invoice for a Panama Company Formation. Upon receipt of money we start the incorporation process.
- The Memorandum and Articles of Association are prepared and sent to the Registrar.
- 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:
- There is no minimum capital requirement.
- The usual authorised share capital is US$1,000 divided into 100 common voting shares of US$10 each. The capital may be expressed in any convertable currency.
- The minimum issued capital is either one share of no par value or one share of par value.
Directors and Officers:
- Three Directors and three Officers are required for a Panama Company; a President, Secretary (see below) and a Treasurer. Directors can also act as Officers.
- Directors and Officers can be any nationality and do not need to reside in Panama.
- Directors and Officers can be either corporations or natural persons. If corporations are used however all corporate documents are public information therefore it is preferable to use nominees.
Restrictions on name & activity:
- Companies cannot use or end with the following; Limited, LTD, Finance, Trust, Foundations, Insurance, Bank, Trust or Insurance.
- A registered office is not required however all Panama corporations must be registered by Agents holding offices in Panama.
- A Company Secretary is obligatory and can be be either a natural or corporate person, of any nationality and is not required to be a resident of Panama.
- Company documents are filed with the Mercantile Registry however a high degree of confidentiality is ensured with nominees permitted.
- Incorporation will take approximately 3-4 working days however the post incorporation procedures take approximately 10 days to complete.
- Shelf Companies are available.
The Investigation of a Cyprus Company's Affairs: Application of the Law & Effectiveness
At the request of a Cyprus company’s Shareholder, where it is proven that a more comprehensive investigation is required regarding a company’s activities, the court can issue a declaration of investigation by an inspector appointed by the Cyprus Council of Ministers. The discretion of the court must be applied carefully; as such an order can heavily impact a company and depending on the outcome of the investigation, can be a severe measure that deviates from fundamental principles of Cyprus company law.
UK: The Current Problems with Money Laundering & the Violation of Anti-Money Laundering Regimes
The fact that money can be transferred from one jurisdiction to another means, that money laundering as a concept involves the entire modern world. Money laundering is a process during which the origin and purpose of payments are hidden and typically has three stages.
Director’s Duties & Liability Insurance in Cyprus
This article will examine the role of a Director and his duties and liability insurance and D&O insurance liability accordingly with reference to the relevant case law.
Q&A: Singapore Small Company Concept for Audit Exemption
The following article will answer some commonly asked questions regarding Singapore small company auditing requirements and exemptions from ACRA.
Exemption from Audit: Singapore Small Company Criteria
Singapore Audit Requirements: running a company in most countries require auditing as a process to prove that everything is operating legitimately. Listed companies have a legal responsibility to go through audit in Singapore similarly.
EU: Cyprus Competitive Advantage at Risk with Tax Consolidation Reforms
Cyprus is likely to have repercussions as a result of Jean-Claude Juncker ’s favouring of a relaxation in EU regulation formation and monitoring schemes, reinforced by qualified majorities on matters including the additional synchronisation of blanket taxation rates across Europe.
Singapore Service Providers: How to Comply with the ACRA Reporting Requirements
As a result of the ACRA Amendment Act in 2014, Registered Filing Agents and Corporate Service Providers now have to conduct independent Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) reviews as part of their annual audit reviews.
Beginners Guide to Service Level Agreements: Important Information & Q&A
SLAs are a critical component of any outsourcing and technology vendor contract. Beyond listing expectations of service type and quality, an SLA provides remedies when requirements aren't met.