Offshore Company: Panama Bearer Share Corporation

"Sociedad Anonima" or S.A. for short

The vast majority of all companies formed in Panama are "Sociedad Anonima" or S.A. for short.  "Sociedad Anonima" is Spanish for "Anonymous Company".   Panama explicitly protects the identity of the ownership of Panama companies with strong secrecy laws.  In fact Panama protects the identity of both the ownership of corporations and bank accounts, which is why Panama is fast becoming the world leader in asset protection.

Who knows who is the Owner of a Panama Company?

Even the government of Panama does not know who owns a bearer share corporation.  Whoever is physically holding the share certificates of a Panama bearer share company is the owner.  If two people are standing in a room and one person hands the bearer shares to another person, the company's ownership is also transferred.  This provides a great deal of flexibility when planning your asset protection structure.  Although its hard to comprehend in North America and Europe, strong privacy is a standard way of thinking in Panama.  People in Panama can not understand anyone who would operate a business without privacy.  Its part of the culture?

But my Lawyer knows who owns the Panama Company... right?

Not necessarily.  Your lawyer has no idea who is holding the physical share certificates.  Ownership of Panama company is determined by possession of these shares which can change quickly and easily.  In addition, your lawyer has to keep attorney client privileges, or face losing his law license.  (assuming you use a lawyer, not an "offshore company mill")

What happens if I lose my Share Certificates?

Losing the share certificates of a Panama corporation is a serious matter, depending on how you had things setup.  Our law firm issues bearer shares with a place where you can write your name or anyone else's name (or a corporation or foundation) as the owner of the corporation.  It is your decision, whether or not to fill this information in.  The share certificates can also be re-issued, so filling in the share certificate need not be a permanent decision.  Also, if you lose the share certificates, blank or not, if you act fast enough, they can be re-issued.  This does not guarantee you won't run into problems if you lose your share certificates, so keep them very safe.  The finder of the share certificates could claim ownership of the company and the matter would have to be taken to a Panamanian court.  The only way you can be completely safe is to write a name on the share certificates.  There is also an option to register these shares at the Panama public registry, to establish ownership on record, but this destroys the anonymous nature of a bearer share corporation.

How Stable is Panama?

Panama has not had a bank failure in the past 100 years.  Panama has had anonymous bearer share corporations for over 80 years!  Panamanian corporation law has not been changed since 1927.  Due to it's unique geography, Panama is not predisposed to natural disasters such as hurricanes and tsunamis that plague many other island based offshore jurisdictions.