Viewpoints
2019-10-25
All offshore jurisdictions require that their international business companies (non-resident companies, offshore companies, Business Companies, etc.) have an address within the country. This is called the Registered Address. Formally it can sometimes be a PO Box, but usually it will be a full street address – for reasons, explained below. Most offshore jurisdictions also require that a company has a Registered Agent within the country. Usually the Registered Agent is located in the Registered Address of the company and is licensed to provide company formation, administration and management services in a professional manner. So, the Registered Agent would usually be a fully staffed, equipped, qualified and regulated firm, which provides those services to a considerable amount of clients and their offshore companies. The name and address of the Registered Agent of every offshore company is filed with the Registrar of Companies. Therefore, these particulars are publicly accessible to […]
2019-10-25
PANAMA LAW No. 25 June 12, 1995 “Whereby Private Foundations are regulated” THE LEGISLATIVE ASSEMBLY DECREES: Article 1. One or more natural or juridical persons by themselves or through third parties, may create a private foundation in accordance with the provisions set forth in this law. For such purposes, the endowment of a patrimony exclusively dedicated to the objectives or purposes expressly stipulated in the foundation charter is required. The initial patrimony may be increased by the creator of the foundation, hereinafter called the founder, or by any other person. Article 2. Private foundations shall be governed by the foundation charter and its regulations, as well as by the provisions of this law and other legal or regulatory provisions that may be applicable. The provisions of Title II of Book I of the Civil Code shall not apply to these foundations. Article 3. Private foundations shall not be for profit. […]
2019-10-25
1. Notice of Annual Fees Kaizen Corporate Services Limited Rooms 2101-05, Futura Plaza, 111 How Ming Street, Kwun Tong, Hong Kong Dear Sir or Madam: We hope this email finds you well. We wish to communicate to all our clients about the annual renewal fees of Panamanian entities (corporations & foundations). The information pertaining to annual resident agent fees and the government corporate franchise tax was sent to you in the package of corporate documents you originally received when you purchased the entity(s). The purpose of this notice is to remind you of this topic. After reading this notice, you will need to contact us regarding your entity(s) balance to bring them to good standing with our law firm and with the government of Panama. For this information, please contact us by email at: enquiries@bycpa.com. 2. Panama Private Foundation Annual Renewal Fees The Annual Renewal Fees are composed of […]
2019-10-25
Annual Maintenance Costs The annual maintenance costs for Corporations and/or Foundations are the following: Description Paid to Frequency Required Amount Corporate Franchise Tax Government Annually Mandatory 300 Tax Filing Fee Accountant Annually Mandatory N/A Registered Agent/ Office Fee Law Firm Annually Mandatory 500 Nominee Foundation Council/ Directors Fee Law Firm Annually Optional 600 Mail Drop Services Fee Law Firm Annually Optional Below you will find a detailed description of each of the above-mentioned costs. Corporate Franchise Taxes To keep a corporation or foundation in good standing with the Panamanian Government, each entity must pay a flat annual corporate franchise tax (“tasa unica”) of USD300 to the Panamanian Government (Public Registry). Please note that if the annual corporate franchise taxes are not paid, the Public Registry will not permit any changes to the entity at the Public Registry, and will not allow you to obtain any Certificates of […]
2019-10-25
1. Procedures for Establishing a Panama Private Foundation If you have read this far, it means that you are now convinced that a Panama Foundation is for you, and you are ready to incorporate. Now it is just a matter of clicking on “Order Now” and completing an online order form. Read the simple procedures below to establish a Panama Foundation. (1) Personal Information: Download and complete our registration order form with your personal contact details. (2) Indicate what type of entity(s) you want: Indicate whether you want a new Panama Foundation or a Panama shelf Foundation. If you choose to purchase a shelf Foundation, then simply indicate that you want a shelf Foundation, and you can skip the name section of the online application. Also, indicate how many Foundations you want of each type. (3) Selecting the Name(s): On the online application, you should indicate three name choices for […]
2019-10-25
Panama Private Interest Foundation The Private Interest Foundation is a juridical person, which is equiped by its Founder with determinated assets which constitute a separate patrimony of the Foundation, after their transference. These properties are managed by a Foundation Council, which is named by the Founder with the purpose to accomplish the objectives of the Foundation. A Private Interest Foundation, as juridical person with its own patrimony, has the capacity to execute rights and acquire obligations. The Private Interest Foundation do not have shareholders or members. It is created by a declaration of the Founder and generally has as purpose the preservations of an established patrimony for benefit of the Founder or third determinated persons. The Private Interest Foundations are instruments for the planning of family successions, may act as shareholders of assets and help to preserve the patrimony for beneficiaries generations. Panama has a long reputation […]
2019-10-25
1. Tax Free Foundations Panama is a 100% “tax haven”. Panama Foundations offer the following tax advantages: – No tax reporting requirements. – No income tax. – No capital gains tax. – No interest income tax. – No sales tax. – No tax to beneficiaries. – No beneficiary transfer tax. – No capital tax. – No property tax (for non-Panamanian property). – No estate tax. – No gift tax. – No inheritance tax. – No stamp tax. – No succession tax. – No inventory tax 2. Flat Annual Corporate Franchise Tax The only tax paid by Panama Corporations (or Foundations) is the flat annual corporate franchise tax of USD300. According to the Law, the corporate franchise tax payment deadlines are as follows; Incorporation Date ………………Tax Payment Deadline From 1 of January to 30 of June 30: July 15 From 1 of July to 31 of December 31: January 15 3. […]
2019-10-25
There is a certain similarity between Private Foundations and Trusts, as the Foundation Council holds great powers of decision and control over the Foundation’s assets since the latter has no owner. This fact requires much trust between the client and the Foundation Council, which is a basic requirement in the trust a client must have in his trustee company. Aside from the similarities, we would like to point out certain differences between Panamanian Private Foundations and Trusts: (1) A Trust is a juridical act by virtue of which a person known as the Settlor transfers assets to a person called the Trustee in order for the latter to manage or dispose of same in favour of a beneficiary who may be the Settlor himself. The Trustee is generally a company that holds a trustee license and engages professionally and habitually in the business of managing properties, investing liquid assets and […]
2019-10-25
We render continuous and nearby support to our clients in the creation and maintenance of offshore International Business Companies and related services. And this is because these companies have always been the cornerstone of countries having a territorial tax regime. The new Private Foundations do not seek to replace offshore companies but to complement them, hence Foundations are used primarily for charitable purposes, to serve as the owners of companies (in which capacity the Foundation is generally called a “holding company” or a “parent company” and for family and/or inheritance purposes. To avoid any confusion or misunderstanding for our clients, we list below the main differences between Panamanian Private Foundations and corporations: (1) A corporation issues shares that represent the participation of the owner in such institution. The shares issued by a company (securities) are transferred by endorsement in the case of nominative shares and by simple delivery in […]
2019-10-25
It is simpler to make a thorough study of this wonderful figure by reviewing the persons or internal bodies a Panama Private Interest Foundation comprises. Put in words differing from its definitions, a Private Foundation consists of the commitment of one or more “founders” to transmit assets (money, real estate, shares, bonds and others) that they have undertaken to contribute or donate (which never amount to less than the equivalent of USD10,000) which, together with other assets contributed by “third parties” may be managed by a “Foundation Council” overseen or not by “protectors” (known in the law as “supervisory bodies” for the benefit of the “beneficiaries”). Each participant in a Foundation is briefly explained below: The Founder One or more persons, whether natural persons or bodies corporate, Panamanian or foreign, may be Founders. Adopting what has become a common practice in Liechtenstein, Panama makes express reference to the Founders […]