Panama

Panama, along with the Seychelles, Belize and the British Virgin Islands, were among the most popular offshore centers. Companies pay taxes only on activities in the territory of Panama (the so-called territorial principle). Therefore, if she has no income from Panama, she is exempt from all taxes, the need to keep accounts, submit audits and tax returns to the authorities.

Basic information about Panama

• The official name is the Republic of Panama. The country is located in Central America, right in the middle between the northern and southern parts of the continent.
• The capital – Panama City – is home to more than 4 million people.
• The official currency in Panama is the balboa, whose exchange rate to the dollar is 1:1. Despite the existence of a unique currency, the dollar is the most widely used currency.
• The official language of Panama is Spanish. But 80% of the population speaks two languages, with English being the second most spoken language.

Company formation and business in Panama

Trade, banking and tourism are the main – and still growing – industrial sectors in Panama. A high level of investment protection and financial privacy – these are important points for every entrepreneur. There is no minimum amount of initial investment required, so you don't have to face any big expenses at the start of the business.

Both registered shares and bearer shares are allowed. A good tax system. Perhaps there is a reduction or even elimination of income taxes. No inheritance, gift or succession tax.

Must have registration agent
High level of anonymity, no one will know who owns the company or who is the director. This information is not public. Three directors are required to establish a company, the number of shareholders or nationality do not play a role. Good news – no tax returns!

Panamanian corporations pay no capital tax (whether on stocks, bonds or other investments. No financial statements or annual reports are filed. Only an annual concession fee filed by a registered agent. The COLON Free Trade Zone offers a unique opportunity for duty-free storage, repackaging or transshipment of goods of all kinds.

Low bureaucracy
No limits on the total amount of imports or exports. The name of the corporation can be in any language and should contain a word, phrase or abbreviation that will indicate that it is a company and not a natural person or group of persons. Commonly used abbreviations such as S.A, Corp., Incorporated, Inc., Limited or Ltd.

Panama is considered the best place to spend your retirement. Most of those present here own real estate or are interested in buying it. But it doesn't matter if you are going to rest or are just at the beginning of your journey, Panama welcomes everyone without distinction! Set up a company in Panama.

The Republic of Panama is located close to other offshore states in the Caribbean. Its company law allowing for the creation of tax-exempt companies was adopted as early as the 1920s, which is why Panama is considered the oldest tax haven.

Panama is particularly sought after for its high level of privacy protection, long-standing tradition and favorable tax legislation. Panamanian legislation distinguishes several types of companies, e.g. International Business Company („IBC“), insurance companies, banks or foundations can be registered.

Establishment process

The company's articles of association are submitted to the public and at the same time publicly accessible register of companies in the form of a notary record, so that the company can be registered as a Non-Resident Company. It is usually stated that it is possible to establish a company within 3–5 days, however, due to the great interest in the Panamanian jurisdiction, the establishment time is approx. a week longer. In addition, it is necessary to take into account the delay in the delivery of documents to the client's address.

Directors and Shareholders
The company's statutory representative can be both a natural person and a legal entity (e.g. another offshore company). Each company must have at least three directors and at least one shareholder, none of the statutory representatives need be Panamanian residents. General meetings of the company can be held anywhere in the world.

Share capital and taxes
As standard, we establish companies with a share capital of USD 50,000, which is the maximum amount for applying the minimum flat tax of USD 300. The share capital may not be fully paid. The only obligation of the company is to maintain the company headquarters in Panama and to pay the government an annual flat tax of 300,– USD.

Accounting and auditing
Panamanian Non-Resident companies are not required to submit accounting and audit unless they have income from sources in the territory of Panama.

Anonymity and Discretion
The register of companies is not publicly accessible (names of shareholders are known only to the registration agent). The names and addresses of the directors must be part of the company's articles of association, so anonymity is guaranteed by the nominee service.

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