A Panama Offshore Company or IBC (International Business Corporation) as they commonly referred to in other jurisdictions, is one of the most extended-standing offshore formation jurisdictions in the world. Established in 1927, the General Corporations Law was given form to the Panamanian corporation and has since registered some 4 lakh corporations and remains one of the premier destinations for offshore company formation.
The Panamanian offshore model has become the world ideal due to its flexible formation structure, methods to provide customer privacy and supportive legal framework. Panama has a record of consistent economic performance. With extensive banking secrecy laws, vibrant banking culture, and key privacy features, it remains an attractive choice of location for Offshore Company registration.
A Panama offshore company gives individuals and corporations the capability to incorporate in a place that has an excellent reputation for financial and offshore excellence. Offshore company formation in Panama offers complete confidentiality, attractive tax-free opportunities, supportive banking infrastructure, and a favourable legal environment, all of which account for why Panama is one of the premier destinations for offshore corporations.
WHY SHOULD YOU START A BUSINESS IN PANAMA?
- Politically stable state: A democratic elected-government, Panama divided into nine territorial units (provinces). Registering an offshore company in Panama means obtaining the license to run or operate a business in Panama.
- Favourable tax laws: This is probably the most persuasive argument working by Panama by stating its favourable business climate. According to the Law "On Companies" non-resident offshore companies in Panama are entirely exempt from paying taxes.
- Stable and growing economy: Stable currency and Low inflation rate as they make use of the US dollar as a legal currency and Panama has doubled the size of its economy within a decade.
- Low labour costs: the cost of paying for labour is significantly lower compared.
- Favourable incorporation laws set out by the government;
- The Panama Canal provides better opportunities to trade.
Benefits of Forming an Offshore Company in Panama
Panama is a matured jurisdiction for setting up an offshore company because of all the advantages and benefits it offers. All of these inherent benefits that there are essential and potential uses for a Panama Offshore Company, the most common of which is as a holding company as a shareholder of offshore entities or to engage in offshore business that does not require a strong physical presence.
Benefits of Forming an offshore company in Panama, to tax incentives for multinational companies, from bank secrecy laws that warrant your security. Below we mentioned the top 10 reasons for opening an offshore company in Panama:
An offshore company in Panama can act as a holding company or own assets and real estate anyplace in the world, shielding them from future liability. There is an immense level of asset protection in Panama.
Panama offshore company offers corporations full confidentiality in all areas of operation and also provides bearer shares which allow the owner to remain anonymous. Bank secrecy laws which punish disclosing account information to third parties. Corporate objectives can keep out of the Articles of Incorporation. Panama has no mutual legal assistance treaties.
Colon Free Trade Zone
Panama is located in a strategic geographic position, having access to several maritime routes and the essential parts in Latin America. Additionally, it offers duty-free storage, reshipment and repackaging of any goods.
Due to Panama has a low risk of natural disasters, the telecom sector can access the best high-bandwidth and fibre optic networks, which offer companies a reliable communication system.
Ease of Entry
Flexible laws and regulations make it simple to incorporate and maintain companies in Panama. There is no need to be inside the country during or after the process. Company registration in Panama approximately takes two weeks.
Free and Stable Economy
Panama offshore benefits from a stable economy and government and is at the top of the list of the world's most open economies.
Flexible Share Capital Requirements
Offshore companies incorporated in Panama have no limit on the amount of share capital and do not require paid-in capital. Also, non-par value, voting and nonvoting shares are allowed.
No Exchange Controls
Panama offshore has no restrictions on monetary remittances abroad. It does not impose currency exchange controls on offshore companies so that funds can flow freely in and out of the country.
No Nationality Restrictions
The directors, shareholders and officers can be of any nationality and live in any country.
Given the country's territorial system, if a company's income obtained outside of Panama, there is no obligation to pay income tax. For more details, refer what Business Setup Worldwide offers for offshore company registration in Panama.
Since its inception, Business Setup Worldwide has been guiding numerous clients to establish their business roots in different parts of the world. We stand as best business consultants who have been aiming to provide hassle-free business incorporation proceedings. Our business experts hold industry knowledge and experience that allows them to offer tailored solutions to suiting business needs. To start an offshore company in Panama, contact us today-we'd be glad to assist.