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Types of Business Structure
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Find out about the types of business structure commonly found in Panama…
Most businesses in Panama are corporations - Sociedades Anónimas (SA). A Limited Liability Company - Sociedad de Responsabilidad Limitada (SRL) is another option in Panama, although this is rarely used. Other business structures (sole-proprietor or self-employed for example) are not suitable for the types of business permitted in Panama. Civil engineers have a different structure.
Some of the features of an SA are:
- No restrictions on nationality
- No requirements to disclose ownership
- No restrictions on foreign owned investments (with a few exceptions)
- No restrictions concerning ownership of shares
- No residence requirements for directors/officers
- No paid-in capital requirements
- No income tax, if income is produced outside Panama
- Total tax exemption on all and any business activity or transaction carried on outside Panama
- No exchange controls
- No restrictions on mergers, acquisitions or joint ventures
- No requirements to file annual financial statements
- No requirement to hold Annual General Meetings of shareholders or directors
- Total secrecy and anonymity
- Reasonable annual registration tax and resident agent fees
- Articles of Incorporation may be done in any part of the world and in any language
- The corporation accounts may be kept in any part of the world and in any language