Incorporating An Offshore Company in Panama | Finance

By FletcherOlfogginson
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Offshore company incorporation is a three word term that scares many people when they first hear it. Put simply offshore company incorporation is the process of forming a company in a country other than the one where you live. There are many reasons to incorporate an offshore company with every person or entity having a different list of requirements / needs when thinking of incorporating.

There is one offshore incorporation center that is getting more coverage in the media lately than any other destination and that is lovely, charming Panama. One of the best known centers in Latin America, Panama City has over four hundred thousand offshore companies registered there making it one of the largest offshore incorporation centers worldwide behind only Hong Kong.

The top reason why Panama is so popular is the virtual anonymity with which a corporation can be registered in Panama. If you use the services of a good law firm they can set up a corporation for you utilizing nominee directors and issue the shares for your corporation in bearer share form. This means that your real name will not appear in any official documents or public registries making it difficult to prove you actually own the company.

Under Panama law, a bearer share corporation (or SA corporation for Sociedad Anonima) can be sold or transferred privately without the need to record the sale in any way. You will receive pre signed resignation letters from your nominee directors to ensure they can not do any funny business with your corporation. You can also replace these directors with your own at any point but you may lose the anonymity if you choose someone you know. Not always advisable.

Incorporating your Panama corporation can even be done without leaving your home if you enlist the services of a Panama law firm. A panama law firm may also be able to help you get Panama bank accounts, stock trading accounts and real estate all registered in the corporations name. Do business with your corporation using your corporation's name and keep your finances just a little more private in the process. Since all communications between client and attorney are privileged using a lawyer when registering your corporation makes a lot of sense since your conversations or emails could not be subpoenaed.

The article of incorporation is the only document recorded in the public registry when you incorporate an offshore company in Panama. Neither the people of Panama nor the Panamanian government knows the true identity of the company owner. The bank you register your offshore company bank account will have records of the bank account signatory but this information is confidential and can only be accessed for a serious criminal investigation. Furthermore, this litigation must be registered in a court in Panama since only Panama courts have jurisdiction over Panama banks.

Typical fees for incorporating an offshore company in Panama are $300 for the government fee, typically $150 each for each nominee director each year and anywhere from $1000 - $2000 in legal fees depending on the complexity and privacy required when registering.

About the Author

Get more information about incorporating an offshore company at the author's panama legal services website.

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