Switzerland is in the heart of Europe. According to Credit Suisse and the eighth-highest per capita gross domestic product, it has the highest nominal wealth per adult in the world.
Switzerland is a wealthy and stable nation and is globally known for its renowned banking sector and low taxation. The offshore companies in Switzerland are taxed on three levels: federal, cantonal, and communal. The federal tax rate is only 8.5 percent, and low cantonal taxes apply.
Panama is a Central American country that has been gaining a reputation worldwide for its respectable corporate and financial services. The government’s documented tax advantages and the promising economic performance of the country are the two factors in which the experts attribute progress. As a result of this, foreigners are more tempted to form an offshore company in Panama.
Offshore Company in Switzerland
Features of an Offshore Company in Switzerland
- All the shares in an offshore company can be owned by foreigners.
- A minimum of one shareholder is good enough to form an offshore company in Switzerland.
- A minimum of only one director is required to form an offshore company in Switzerland.
- The name of the shareholder is not registered in the public registry of the government.
- Nominee shareholders and directors are readily available for additional privacy.
Advantages of an Offshore Company in Switzerland
- Personal taxes and the income tax rate are very low here.
- Even no corporate tax is charged on profits.
- No restriction in maintaining accounting records and documents.
- There is no need for any minimum share capital to form an offshore company in Switzerland.
- No value-added tax is also charged
Offshore Company in Panama
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.
Advantages of an Offshore Company in Panama
- Panama is a multicultural transit country as it is located at the center point of North and South American business operations.
- A huge portion of businesses fluently uses both English and Spanish, which minimizes any language barrier within the country.
- Panama has been continuously increasing its financial and infrastructure service industries.
- No limitation in foreign exchange
- All shareholders enjoy maximum privacy.
- The incorporation process is pretty quick.
Requirements for Incorporation of a Swiss Offshore Company
Articles of Association
- Draft and agree
Corporate Information
- Name of the company
- Registered office and address
- Capital structure
- Details of the founder and Signatory powers
- Board of directors and signatory powers
- Statutory auditors
- Officers and signatory powers
Auditor Acceptance Letter
- The auditor appointed must confirm the acceptance in writing.
Paid in Capital Confirmation
- It must be in the blocked account if it is paid in cash.
Power of Attorney
- Representing the founders in incorporation matters
Founder’s Declaration
- Declaration of incorporation
Shareholder’s Agreement
- Draft and agree if applicable
Shareholder Register
- A register must be created, and initial entry certificates must be issued.
Commercial Registry Submission
- Details of the new company
- Details of the notarized public deed
- Details of the accompanying documents to be submitted to commercial registry
Requirements for Incorporation Process of a Panama Offshore Company
- Names and addresses of all the shareholders of the company incorporated.
- A unique name for the company
- Company’s address and objectives
- The amount of share capital
- The number and nominal value of the shares in which the share capital is divided
- List of the board of directors including their designations
- A number of shares that each of the shareholders agrees to take.
- Name and address of the resident agent
- Company’s duration
Whether you aim to open your offshore company in Switzerland or in Panama, you should know both the types of business formation. Offshore strategies might be highly beneficial overall at both these locations, but there are repressive measures to consider.
We hope that all the above information will give you a clear picture of deciding whether to start an offshore company in Switzerland 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.
