Currently, Panama is among the most popular offshore areas for entrepreneurs from around the world. Today, thousands of offshore companies are registered in this country, and every year their number is only increasing.
The advantages of opening a company in Panama
- Location of the state. Panama — is the most important node that connects the Pacific and Atlantic Ocean of the same name channel. Thanks to this, the country became the key trade route of Central America, through which huge volumes of various commodities and industrial raw materials are being transported daily to the rest of the South American countries.
- Tax system. This aspect of Panama plays the role of the main reason for the country’s attractiveness to foreign investors. The local tax system is one of the most efficient in the world to improve the business climate. This is due to the complete absence of taxation of offshore enterprises, the founders of which are non-residents. Therefore, a large number of entrepreneurs for registration of firms choose this country, which allows them to avoid excessive tax burden, and also contributes to the development of business and increase profits. The only exception is the Annual Unified Tax, which is obliged to pay all citizens of Panama and owners of companies with local registration.
- Economic situation. Panama is currently the central hub for the provision of financial services in Central America. The constant influx of foreign investment in the country’s economy, together with the development of banking technologies and legislation favorable for entrepreneurs, significantly stimulates the Panamanian economy, increases the welfare and purchasing power of local residents. Together, this provides an extremely favorable ground for the development of entrepreneurship.
- The current legislation of Panama guarantees entrepreneurs (regardless of their citizenship) full protection of confidential information from third parties.
- Stable political situation in the country.
- Short time for registration of an offshore company. In most cases, this procedure lasts from four days to a week.
- No requirements for holding shareholders meetings in Panama. The congress of founders can be held in any country of the world.
- No requirement for the number of shareholders.
- No dividend taxation.
- No need to fill out income statement.
- The government practically does not interfere in the business, carrying out superficial supervisory control over the conduct of business.
Common types of companies in Panama
Currently, the most common forms of registration in this country are the following:
- Full partnership.
- Closed Joint Stock Company.
- Individual entrepreneur.
- Joint-stock company with limited liability.
- Civil society.
- Limited company.
Key Aspects of Opening an Enterprise in Panama
- Company name. The name of the company must be unique. Among the words that are prohibited to choose a company name are: Finance, Trust, Bank, Foundations, Insuranse.
- For the provision of banking, insurance, trust and fund services, offshore companies must obtain an appropriate permit from the Ministry of Commerce and Industry. Also without this act it is impossible to provide the legal address of the enterprise for other companies with its further use.
- After the company has received the name of the company, the relevant inspectors carry out an inspection aimed at confirming or refuting the fact that a similar name exists with other Panamanian companies. If the outcome of the inspection is positive, the regulatory authorities approve the further stages of registration.
- Registration of an enterprise in Panama does not require the personal presence of the founder in the country. It is enough to use the services of relevant law firms that specialize in providing services of this kind.
- To manage the company, the owner must appoint a local agent with Panamanian citizenship.
Our lawyers will provide you with full support and support at all stages of company registration, prepare a package of required papers and provide all necessary advice. For information that interests you, please contact our expert department at the contacts listed on the site.