Panama is a Central American country gaining a reputation worldwide for its exemplary corporate and financial services. The government's documented tax advantages and the promising economic performance of the country are the two factors to which the experts attribute progress. As a result of this, foreigners are more tempted to opt for business registration in Panama.
The General Corporations Law came into effect in 1927 and gave shape to the Panamanian Corporation. Roughly 400,000 corporations have been registered in Panama since then, making it one of the best destinations for offshore business formation.
A Panama Offshore Company is also known as an International Business Corporation (IBC). IBC comes attached with several benefits for an investor. Due to advantages like customer privacy, business-friendly legal framework, adjustable formation structure, Panama offshore company formation is highly sought after.
Panama Offshore Company
Panama is a Central American country that has the fastest growing economy and the largest per capita income. The government is presidential independent, and sovereign by nature. It is one of the most developed centres for international businesses.
The laws of Panama only allow the submissions of accounting records, files, or other documents to foreign authorities with the express permission of the Courts of Panama.
Panama is a perfect jurisdiction for an offshore company for asset protection purposes. The legal system there is well developed, tested, and professional. The country's advanced corporate code allows for maximum protection. These are some of the reasons explaining why to start an offshore company in Panama.
Features of an Offshore Company in Panama
- No corporate taxation is levied on an offshore company.
- There must be a registered office in Panama.
- Minimum government fees excluding tax are 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.
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
- Some shares that each of the shareholders agrees to take.
- Name and address of the resident agent
- Company's duration
Benefits of a Panama Offshore Company
Panama offshore companies share certificates that can be issued in bearer form with or without par value.
2.No Reporting Requirements or Taxes
A Panama offshore company does not impose any reporting requirements or taxes on non-resident Panamanian companies.
3.No Piercing the Corporate Veil
A Panama offshore company does not allow "piercing the corporate veil," which is why your corporate books are maintained 100% private and confidential by law.
When a Panama offshore company appoints nominee directors for the entities that they establish for their clients, they always provide their clients with pre-signed, undated letters of resignation from the directors.
5.Favorable Incorporation Laws
A Panama offshore company offers the most favourable and most flexible incorporation laws in the world. There is a well-structured process for incorporating a company in Panama; learn about how to open an offshore company in Panama on our blog.
6.Strict Privacy Laws
Panama has one of the most reliable bank accounts and corporate book secrecy laws in the world. Privacy and confidentiality are not only respected but also vigorously protected by constitutional law in Panama.
Panama has the most stable government in all of Central or South America.
8.Business and Taxation
Panama is the best place in the world to run a business. It is one of the most significant advantages of Panama as a jurisdiction right now.
Some occupations like- doctors, lawyers, accountants, retail business owners, etc., can only be done by Panamanian citizens. The foreigners who want to be in business in Panama focus on tourism-related opportunities or other service-related companies.
If you're looking for a place to open an offshore company, you won't find a better place than Panama.
The offshore services available here are another significant benefit of Panama as a jurisdiction. Panama corporations do not pay any income tax in their own country, making Panama a perfect place for you to set up your offshore company.
The lenient taxation laws for an investor are the reason why Panama offshore is a tax haven.
10.Pushing For First World Status
Panama is being pushed towards First World status. All the revenues are being thrown off by the Panama Canal and then being invested in infrastructure improvement projects across the country. You will find some of the other construction works when you drive through Panama City, showing that investment opportunities are tremendous here to base an offshore company in Panama.
Incorporating an offshore company in Panama or any other jurisdiction can prove to be a challenging task. It is always recommended to seek help from an expert who can guide you throughout the entire registration process.
We here at Business Setup Worldwide provide customized business solutions. If you need any assistance to open an offshore company in Panama or have any queries related to the services we offer, contact us today. We'd be glad to assist you.