Are you thinking about opening an offshore company in Panama? Then let’s find more about how to do that and what opportunities does this country offer to foreign entrepreneurs! ↓
What are the perks of setting up a business in Panama?
- Tax system – the Law on Offshore Companies implies that non-resident companies are completely exempt from taxes. The only tax you’d have to pay is the Annual Single Tax, the amount of which is strictly fixed: $250 in the first year of registration and $300 every next year until company closure;
- Geographical location – the country is located between Costa Rica and Colombia (Central America), having strategically important control over the Panama Canal linking the Atlantic and Pacific Oceans;
- Confidentiality of the business sector, dictated by the state itself;
- Economical stability – stability and development are the main characteristics of the country’s economy. In addition, having established itself in the status of the “banking center” of Central America, Panama has become a place of concentration of the vast majority of financial institutions from around the world;
- Political stability – it will give you all the necessary opportunities for the full management and development of your business.
Which forms of registration and types of companies are most common in Panama?
- joint stock company;
- full partnership;
- limited partnership ;
- civil partnership;
- limited company;
- individual entrepreneurship.
What is the most profitable way to register a company in Panama?
The best business form for the development of your offshore company are the following →
A fund offers:
- confidentiality and anonymity in the transfer of property shares;
- continuous existence;
- the possibility to divide property according to the conditions determined by the founders;
- the lack of currency restrictions;
- the ability to determine special conditions.
A corporation offers:
- registration within 4 business days;
- no requirements for the number of shareholders;
- no direct relationship between paid-in capital and the value of the assets;
- no requirements regarding Panamanian citizenship;
- weak government control;
- no declaration of income;
- zero tax rate on dividends earned;
- audits conducted by decision of the shareholders.
Before you start searching our site for Panamanian offshore company formation, here’s some information on the topic of their legal framework:
The legislative act governing the activities of offshore companies registered in Panama is the Panamanian Commercial Code. According to its paragraphs, the minimum number of offshore directors is 3. In addition, more than two posts can be occupied by one person, regardless of their residency (country of residence).
These are the regulatory acts you’ll want to consult:
- Administrative Decision N296 (1927);
- Decree Law N5 (1997).
Documents needed for application:
- Memorandum and Articles of Association (implies the address of residence, the names of the founders, the amount of share capital, the purpose of the company and the legal address);
- Certificate of incorporation;
- Protocol on the appointment of a director;
- Certificate of shares and resolution on its issue;
- Director's consent to the performance of duties;
- Registers of shareholders and directors.
Moreover, the registration does not necessarily require the personal presence of the owner. Still, if you want to do business here, it is necessary to maintain a local office, and the agent must be a resident of Panama.
Now you know that registering an offshore in Panama is one of the cheapest and easiest ways to establish a legitimate international business.
If you’ve reached this point and still aren’t sure how and if to set up a company in Panama, we recommend you do that with the help of professionals.
Bizonaire is here to assist you throughout the whole registration process of your Panamanian company, taking into account all the local requirements and regulations!
