Setting up an offshore company in the republic of Panama is an easy process. If this is something you have been considering, don’t be intimidated. With the right guidance, you can get this done quickly and legally. Many people regret waiting as long as they do before setting up their offshore company. Here are the four basic steps to forming a Panama offshore company.
Contact a Lawyer
The first step you should do when setting up a Panama IBC is to contact a lawyer in Panama so your IBC can be set up the right way. Choosing to use a lawyer with years of experience who knows all the fine details of setting up an offshore company can save you a lot of time and hassle. They can help guide you through the process from a distance, without ever requiring you to come to Panama.
Choose a Company to Incorporate
There are different types of companies that you can set up offshore. There are trading companies, limited liability companies, corporations, etc. This will be important in your official documentation when you register your business. Our lawyers can help you decide which type of company is best for your situation. This helps direct the paperwork process required along with the official abbreviation for the name (“Inc.”, “SRL”, “S.A”, “Corp.”, etc.)
It is also important to name your company. There are many words prohibited from use that imply government use or representation. It is also possible that the name you have chosen is already taken. For these reasons, it is a good idea to select three or four possible names that you can choose from if your first choice isn’t permitted for any reason.
Now that all the preliminary steps have been taken, the lawyers can begin the paperwork. The entire process can take 5 days if everything is in order, but there are some things you can do to help keep it going. Provide required paperwork and documentation, such as copies of identification documents and evidence of your residential address. List preferable ways to communicate with you too so it is clear from the beginning.
From the very beginning, it helps if you know how much privacy is required with this company. Many people form Panama offshore corporations with the highest levels of privacy to protect assets. Whether you are listed as a board member, president, or another position can influence the level of privacy involved. It is also possible to leave names off public records entirely. Knowing this information upfront helps lawyers to maintain the privacy level throughout the set-up process.
Designate responsible parties for the various positions within the country, such as company president or director, who shareholders will be, if the company will be issuing bearer share certificates, if there will be a board and who will serve as members. Other paperwork includes the Articles of Incorporation with who has official privileges, voting powers, restrictions, or other rights.
Fund the Company
Panama does not have a minimum capital or time limit on funding the company. Putting money into the business to keep it going is a necessary step to incorporation though. The amount of money you contribute will determine the value of shares. The standard amount to fund a company is $10,000 with 100 shares.
If you are interested in setting up your own Panama offshore company, and you would like more details, we recommend reading our offshore company FAQ page. The best part of having a lawyer on your side is having the sense of security that comes with having someone to answer all your questions and guide you through the process. If you have other questions that you don’t see an answer to, reach out to our law office. We would be happy to help you decide if setting up an offshore company is right for you.