One of the offshore formation jurisdictions with the most extended history in Panama, also known as an IBC (International Business Corporation) in other jurisdictions. The Panamanian corporation took shape thanks to the General Organizations Law, which was established in 1927 and has since registered about 4 lakh corporations, making it one of the top locations for offshore companies.
So if you are looking for any place to incorporate a company, Panama is a considerable one. Due to its flexible formation structure, measures for protecting client privacy, and supporting legal environment, the Panamanian offshore model has emerged as the ideal worldwide.
Let's explore Panama's options for investors and business people.
Advantages of Panama Offshore Company
Panama has a history of stable economic growth. However, with stringent financial secrecy rules, a thriving banking industry, and essential privacy characteristics, it is still a desirable place to establish offshore companies. There are some advantages for why you should consider Panama for offshore destinations, which are as follows:
- Politically stable state: A democratically elected government, Panama is divided into nine territorial units (provinces). Registering an offshore company in Panama means obtaining the license to run or operate a business in Panama.
- Favorable tax laws: This is probably the most persuasive argument working by Panama by stating its good business climate. According to the Law "On Companies," non-resident offshore companies in Panama are exempt from paying taxes.
- Stable and growing economy: Stable currency and Low inflation rate as they use the US dollar as a legal currency. Panama has doubled the size of its economy within a decade.
- Low labor costs: the cost of paying for labor is significantly lower.
- Favorable legislation for incorporation that the government has established.
- The Panama Canal offers increased trading prospects.
Learn more about the 10 benefits of offshore company registration in Panama.
How to Open an Offshore Company in Panama
Our group of incorporation experts in Panama has listed the essential procedures for doing so below:
1. Choose the Business Structure
The S.A. or joint-stock company is one of the most popular and is suitable for a wide range of commercial goals. However, there are other forms of corporations available.
2. Create the Company Paperwork
Investors must create and sign the constitutive documents for the firm, the details of which are provided below.
3. Register the Business
The Public Registry must receive a registration for the new legal organization.
4. Open a Bank Account in Panama
If necessary, this step can be done before registration; the business will need a local corporate bank account.
5. Obtain Licenses
Certain company operations need additional licensing, depending on the industry. For example, companies in this industry must hold a financial services license from the Superintendence of Banks.
*Investors must have a registered office in Panama to establish a company there, often in the form of an International Business Company (IBC). Learn more about Panama offshore IBC. This stipulation is applicable everywhere around the globe when creating a new legal corporation and Panama is no exception. This registered address, however, is not required to be the same place where the firm conducts its operations.
Features of Panama Offshore Company
The following are only a few of the traits of an offshore Panama company:
- A registered corporate office must exist.
- Availability of a ready-made business
- There is no minimum paid-up capital requirement.
- There must be at least one stakeholder.
- No need to do an annual audit.
- The annual accounts return is not required to be filed.
- The financial details are not made public.
Since its inception, Business Setup Worldwide has guided numerous clients to establish their business roots in different parts of the world. We stand as the 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 suit business needs. To start an offshore company in Panama, contact us today-we'd be glad to assist.
What is the VAT rate on products in Panama?
7 % for certain products and services, 10% for alcohol and 15% for cigarettes.
What are the different types of Panama offshore companies?
- - trading company;
- - shipping company;
- - services company;
- - investment company;
- - holding company.
What are the main business sectors in Panama?
- Travel and tourism
What are the required documents for offshore company formation in Panama?
- Name of the proposed corporation
- If you're utilizing this service, the name and address of your proposed or nominated shareholders.
- Your corporate goals and your company
- Your suggested corporate capital contribution
- Addresses and names of directors (or nominees)
- Your company's registered agent information and address