A: We are located in Panama City, Republic Panama. We are a full
service law firm that specializes in establishing Panama
offshore corporations and foundations in the Republic of Panama.
Our attorneys are registered agents in the Panama Public
How can I trust your service, can you provide references?
A: We are a reputable provider in the offshore industry. If you
would like, we can provide you with a list of professional
correspondent references. Unfortunately, due to the confidential
nature of our business, we cannot provide our clients as
Q: Do I need to come to Panama to finalize anything?
A: You do not need to come to Panama to setup a Panama
corporation or Panama foundation, as everything can be processed
through email and courier.
However, Panamanian banks do require personal interviews to
setup your personal or corporate bank accounts.
Q: What if I want a shelf entity?
A: No problem that you want a shelf entity instead of a new
entity. If you need immediate delivery, then request a shelf
Q: Do you recommend a new corporation (or foundation), or
should I use a shelf entity?
A: That depends on your needs. If you want to use a specific
name then you need to set up a new entity. If you need instant
delivery and you can accept any company name, then we recommend
a shelf entity.
Q: What is the difference between corporation and foundation?
A: For banking purposes, there is very little difference. All
entities come with everything you need to open bank or brokerage
Generally, corporations are used for profit ventures
involving business activity such as securities trading, banking,
international trade, ownership of assets etc.. Foundations are generally used for non-profit activities
such as charities, receiving or giving donations, grants, etc.,
but can also be used for holding purposes such as holding
ownership of a Panama corporation or any other type of asset.
Most of our clients use Private interest foundations to hold
ownership of their corporations for additional confidentiality
and asset protection.
Q: Can I use my entity (Corporation or Foundation) to hold
ownership of real estate property in my home country?
A: That depends on the country you are located in and the real
estate ownership rules in that country. Some countries have
extensive reporting requirements, additional property taxes, and
all kinds of red tape to go through when titling real estate in
the name of a foreign entity.
If you are interested in Offshore asset protection for domestic
real estate, then we generally recommend that you title the real
estate in the name of a domestic entity (such as a domestic
corporation, LLC, or trust) and then have the domestic entity
owned by Panama corporation or foundation.
Q: Is there any requirement to file Panama tax returns, keep
books for the corporation, have an accountant, etc.?
A: Yes. Offshore companies must file an annual tax declaration
stating that they are â€œoffshore companiesâ€, so they donâ€™t
pay tax in Panama. Panama offshore companies earning money
outside of Panama donâ€™t pay income taxes in Panama. It is not
a requirement to keep books for the corporation or have an
accountant. However you may keep your own internal (private)
books for accounting purposes.
Q: Are there annual renewal fees for the corporation or
A: Yes. The annual corporate franchise tax is US$300 per entity
(corporation or foundation), which is paid to the government of
Panama. The annual fee for registered office & resident agent is
also US$300. If you use our nominee directors service, there
will be an additional annual fee of US$150. The first yearâ€™s
fees and government taxes are included in the purchase price. On
each anniversary date of the corporation, our renewals
department will invoice you for the annual fees.
Q: Are there penalties or late fees for not paying the annual
fees for the corporation or foundation?
A: Yes. The government charges a late fee of US$50 if you do not
pay the annual corporate franchise tax on time. After the first
late fee, the government charges a second late fee of US$300 for
failure to pay two consecutive fiscal periods. Our law firm
charges a late fee of $50 per fiscal period, for non-payment of
resident agent/registered office/nominee director fees. It is
very important to maintain your entity(s) in good standing.
Q: What will I receive ?
A: Each Panamanian corporation package comes complete with
articles of incorporation (with official English translation),
resident agent, registered office, share certificates (issued
either to the Bearer, or in Nominative form), and a resignation
letter from the subscribers. Foundations include the registered
foundation charter (with official English translation), resident
agent, registered office, and notarized Private Protectorate
Optionally, you can ask us to provide nominee directors or
council (for additional fee). In this case we will also include
pre-signed, undated letters of resignation from each director
(or council member), plus a Notarized and Appostiled General
Power of Attorney. The Power of Attorney comes with a blank
space so you can complete it with any name you want. The persons
name who appears in the Power of Attorney would have authority
to actually operate the corporation (or foundation), e.g. sign
contracts, open and operate bank and brokerage accounts etc.
Q: What are nominee directors and nominee signatories?
A: Nominee directors (or nominee council members) are directors
that our law firm appoints for you. Each corporation or
foundation must have 3 directors appointed when the entity is
registered in the public registry of Panama. The directors names
and passport numbers are on the public deed of the corporation
(or foundation) and this information is publicly available. When
we appoint nominee directors on our clients entities, we provide
our clients with pre-signed, undated letters of resignation from
each director so they can replace the directors at any time. The
nominee directors we appoint are only there to fill in the
blanks at the public registry and they have no authority over
the entity for any kind of decision making.
Nominee signatories are signatories that our law firm appoints
for you on your corporate accounts. In many cases, our clients
prefer to not be the signatory on the corporate accounts due to
either privacy reasons or foreign account signing reporting
rules in their home countries. When we appoint nominee
signatories on our clients corporate accounts, we charge an
annual fee of US$1000 (or 1%, whichever is more) for this
service. When our clients want a transaction done on their
corporate account, they would simply contact a designated
service representative within our firm, and make the request,
then we forward the request to the bank or broker to execute the
Q: Can I transfer securities to the corporate brokerage
account of my corporation?
A: Yes, once the corporate brokerage account is set up, we will
provide you with DTC instructions to transfer the securities to
the corporate brokerage account. All you need to do is instruct
your broker to DTC transfer the securities to the instructions
we provide. If you have stock that is in physical certificate
form, you must either deposit the stock in a brokerage account
and DTC it to the corporate brokerage account, or have the stock
certificates re-issued in the corporations name, then send the
certificates to the brokerage firm along with the stock powers
and the brokerage firm will deposit them into the corporate
Q: Can I transfer mutual funds, IRAâ€™s, 401Kâ€™s, or pension
funds to the corporate brokerage accounts that you set up for my
corporation (or foundation)?
A: In most cases, mutual funds can be transferred without a
problem through a DTC transfer if the are publicly traded mutual
funds. Otherwise, if they are mutual funds that are not publicly
traded (they do not have a symbol on the market like a stock),
then it is slightly more difficult as you have to instruct the
mutual fund company to transfer the ownership to the
corporation. We do not assist our clients in transferring mutual
funds, we only provide DTC instructions to transfer publicly
traded securities. IRAâ€™s, 401kâ€™s, or pension funds cannot be
transferred to the offshore corporation or foundation.
Q: Do you provide additional services such as legal
consulting, corporate mail forwarding, etc.?
A: Yes, we provide legal consulting and also offer corporate
mail forwarding services, corporate contracts and agreements,
Panama immigration services, real estate law, and much more.