Why a S.A. Corporation?
The incorporation of a S.A. corporation furthermore as being a quick and uncomplicated process, it just requires a minimum capital of $ 10,000.00 USD, which is signed, but it is not paid. In relation with shareholders, this figure seeks to protect his identity, since the shares may be issued in bearer or registered form, with or without par value and without restriction on the amount.
The S.A. Corporation is a form of capitalist organization type widely used by those who wish to formally engage an economic activity. All capital is divided into shares, which represent the participation of every partner in the company.
A S.A. Corporation can be formed in order to perform commercial operations, while always pursuing profit Between the S.A.’s applications are:
Panamenian S.A.’s Advantages
The address of the company can be anywhere in the world, allowing it to maintain its accounts in the location of their choice. Annual or regular meetings of the Assembly or the Board are not required, also, the directors and officers can be natural or legal persons and don’t need to be shareholders, residents, citizens, or be domiciled in the Republic of Panama. Incomes from foreign operations are not considered income from Panamanian sources and, therefore, are not taxable under our tax law. In light of the foregoing, in Panama, the income tax is levied only on the net taxable income generated by the operations performed within the territory of the Republic of Panama. The duration of the company may be perpetual; however, a S.A. company may have a fixed term and may be dissolved at any time. Panama official currency is US Dollar.
Private Interest Fundations
The F.I.P. is an Asset Protection novel instrument, given that they are acts by which a person donates an asset to the achievement of the objectives previously established in the foundation charter by the Board of Governors for the benefit of the Beneficiaries. The founders, the protectors and board members of the foundation may be beneficiaries of the foundation. In Private Interest Foundations, there’s not attachment or confiscation of personal property
Uses of P. I. F.
Useful Foundations uses are:
Benefits of a Panamenian P. I. F.
Simple procedures, administration and management. Tax exemption and statements in the Republic of Panama, including without limitation, income tax, tax on capital. No legal requirement to disclose the name of the beneficiary or real protector of the foundation, keeping in confidentiality and anonymity integrators. No maximum in terms of authorized capital. The capital is subscribed but is not paid. There is no limitation as regards perpetuities, accumulation of capital and other restrictions required in similar structures in other jurisdictions, such as the trust fund. Is considered a more flexible instrument that trustfounds, legal structures with certain similarities.
Both structures can be used individually or in assembly depending on your interests and goals, either, to develop economic activities or the protection of its assets. In any case, concerned about providing the best option, we offer our expertise and commitment to your questions on the subject.
The importance of being up to day
In every circumstance of life, on- time payments of our duties, to companies and individuals, brings benefits and leaving them behind, negative consequences. It’s crucial to have a consistent track of our bills, being this the best way to achieve our companies’ goals
Which is our suggestion?
We highly recommend to our clients to pay in the first month of every year, in order to purchase the certificates of good standing, and so provide to you additional comfort and excellence in our work, tailored to your needs, from the smallest detail to overcome your expectations
What it’s a Certificate of Good Standing?
A certificate of good standing, it’s a document provided by The Ministry of Economy and Finance (known in Spanish as MEF) which is used to clarify on the fact that, a natural or legal person, doesn’t have any tax obligation, due to unpaid balances for taxes, including income tax, flat rate of annual fees, providing services, education insurance and employee-employer contributions and occupational hazards. The certificate of good standing will be granted, only to natural or legal persons who have fully met the obligations related to the provisions governing taxes
Why I need it?
The importance of the certificate of good standing, is it compulsoriness for contracts’ conclusions, in order to being effectives, and the ability to perform procedures in the different public institutions No Certificate will be issued when the contributor is in default with the National Treasure on the payment of any tax withheld
The inconvenience of not having a Certificate of Good Standing
When you don’t have the certificate of good standing your company will be facing difficulties as: