Offshore Company in Delaware vs Panama

Offshore Company in Delaware vs Panama

Delaware and Panama are among the top offshore locations in the world. As an investor, you must understand the advantages of both so you can choose one which best suits the business requirements.

In this blog, we will discuss the advantages and features of offshore companies in Delaware and Panama.

An Introduction to the Jurisdictions

Delaware is one of the fifty states in the United States of America. The business-friendly environment along with the strategic location makes this jurisdiction very attractive for setting up a business.

Panama is a country in North America that is gaining a reputation worldwide for its corporate and financial services. The country's tax advantages and growing economy are the two reasons for its progress. As a result, foreigners are attracted to form an offshore company in Panama.

What is Delaware Offshore Company?

The Delaware offshore company is an internationally recognized company which includes a limited liability company or international business company. It provides tax advantages for investors when trading or investing in the US (United States).

The offshore company does not pay corporation tax and its members can be held responsible for their personal income. One or more members can form a Delaware offshore Company, though it is recommended to have two or more members to benefit from tax exemptions. There is no limit on the number of members required for Delaware offshore company registration.

What is Panama Offshore Company?

Panama offshore company is a popular company type that enjoys tax exemption on income derived outside of the country. Due to its competitive tax policies, it is popular among business investors and entrepreneurs. 

The International Business Company (IBC) in Panama is one of the most popular company structures. It caters to a number of business activities allowing investors to take advantage of various opportunities. The strong privacy and flexible company structure also benefit Panama offshore companies. 

Advantages of a Delaware Offshore Company

Advantages of a Panama Offshore Company

  • Low incorporation and administration fees
  • Panama offshore companies offer ownership through bearer shares, which can be issued with or without a designated value.
  • Fast incorporation process
  • Panama offshore company does not impose any reporting requirements or taxes on non-resident Panamanian companies.
  • The Delaware offshore companies are not subject to Federal income tax in the United States.
  • Panama offers strong protection against legal challenges attempting to access a company's internal records.
  • No requirement for any file accounts
  • When a Panama offshore company appoints nominee directors, they always provide their clients with pre-signed, undated letters of resignation from the directors. This provides greater control over nominee directors.
  • Presence of a well developed Law system in Delaware
  • A Panama offshore company offers favorable and flexible incorporation laws.
  • Delaware will keep your personal assets safe and sound. It will protect all your belongings from various political problems and illegal activities.
  • Panama has one of the most reliable banking and corporate book secrecy laws in the world.

Features of an Offshore Company in Panama

  • No corporate taxation in a Panama offshore company.
  • There must be a registered office in Panama.
  • Minimum government fees excluding tax is the US $250
  • Bearer shares are allowed but do not allow par value shares.
  • A minimum of three directors is required.
  • A minimum of only one shareholder is required to form an offshore company in Panama.

Features of an Offshore Company in Delaware

  • There is no corporate tax applied to the income earned outside the state.
  • No exchange control is applied to the offshore companies.
  • No minimum registered/paid-up capital is required for a Delaware offshore company formation.
  • A local registered agent and registered office are required to open an offshore company in the state.
  • A minimum of one shareholder is required for a company formation.

We hope that the above information provides a clear picture of whether to start an offshore company in Delaware or Panama. Business Setup Worldwide is a platform to guide you through this. If you need any assistance, then you can contact us! We’d be glad to assist you.

FAQs

Is it necessary to be present in Delaware during an LLC formation?

No, the physical presence is not mandatory to open a Delaware LLC.

What is the minimum number of directors for a Panama offshore company?

You need a minimum of three directors for a Panama offshore company formation.

What is the Delaware LLC liability structure for the members?

The members of the LLC are not liable for any debts and liabilities.

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