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How to Start an Offshore Company in Panama?

Panama is an international trade and finance centre located between the Americas. It’s a politically stable environment, pro-business legislation, attractive tax regime and its developed and large banking sector have made Panama one of the most popular jurisdiction to establish international companies.

A Panama Offshore Company, or International Business Corporations (IBC) as they are commonly referred to in other jurisdictions, is one of the most extended-standing offshore formation countries in the world. Launched in the year 1927, the General Corporations Law gave form to the Panamanian Establishment and has since recorded some 400,000 corporations and remains one of the leading destinations for offshore company incorporation. The business model of Panama has since become the world standard due to its flexible incorporation structure, methods to safeguard customer privacy and helpful legal framework.

Panama offshore businesses can be used for international trade, to settle foundations or trusts, to set up an offshore investment account or offshore bank account, to hold ownership of the intellectual property,  real estate, or to hold any other type of assets. In a few cases, customers form a Panama business for very private and private business transactions such as the movement of funds to other countries for the protection of the assets, using an offshore asset protection corporation in Panama. In other cases, the customers start several Panama corporations working together for their asset protection needs.

Benefits of Offshore Business Setup in Panama

Here are a few advantages of starting an offshore company in Panama.

  • Panama incorporation share certificates can be issued in Bearer or Nominative form, with or without par value
  • Panama does not enforce any reporting requirements or taxes for non-resident Panamanian companies
  • Panama does not permit "piercing the corporate veil", so your commercial books are maintained 100% private and confidential by law
  • Panama provides the most favourable and most variable incorporation laws available in the world
  • Panama continues to support what we consider to be the most reliable banking and corporate book privacy laws in the domain, which are etched in its' constitution
  • Panama has what is said by government analysts to be the most steady government in all of Central or South America
  • The tax advantages are as under –
    • No tax report requirement
    • No sales tax
    • No property tax
    • No estate tax
    • No gift tax
    • No stamp duty
    • No inventory tax
    • No income tax
    • No succession tax
    • No capital stock tax

Main Uses of a Panama Offshore Company

Panama has a favourable legislative and banking atmosphere making incorporation procedures both comfortable and flexible for many different business activities. An offshore business can be made for any legal purpose and any legitimate activity, including but not limited to:

  • Offshore savings and investments
  • Private Interest Foundations
  • Forex and stock trading
  • E-commerce
  • Professional service company
  • Holding Company
  • Licensing company
  • Internet services
  • Asset protection Company

Features of a Panama Offshore Company

  • The requirement for a registered corporate office in Panama
  • Availability of a shelf company
  • No provision of minimum paid-up capital
  • Minimum one shareholder required
  • No need to prepare yearly audit
  • No need to file annual accounts return
  • Financial information is not displayed publicly

Procedure to Form an Offshore Company in Panama

We at Business Setup Worldwide can help you set up an offshore business in Panama. The steps to start your offshore company formation in Panama is as under –

  1. Select a trading name for your business and get the trade name certificate
  2. Fill an application form, after which you shall receive the confirmation e-mail
  3. Send the required documents for business incorporation
  4. Pay fees and get the Certificate of Registration

If the help of a consultant you can also ask for additional services like –

  • Accounting and Bookkeeping Services
  • Business License
  • Corporate Secretary
  • Intellectual Property
  • Offshore Bank Account

Contact us today to know more.