Panama is one of the first countries to create favorable conditions for the development of international activity. Its loyal legislation forms the prerequisites for registration of foreign companies that want to conduct profitable business and minimize the tax burden. The offshore zone of Panama is open to various funds, trust companies, corporations. The assets of entrepreneurs are reliably protected. The country has a favorable investment climate, developed economic infrastructure. If you are evaluating this jurisdiction as a viable option for establishing your business presence in Panama City or elsewhere, it may be a good fit considering the following available advantages.
Advantages of Panama as a jurisdiction
Creating a company in Panama is associated with obtaining the following advantages:
A country with a stable economy and understandable legislation attracts businessmen from all over the world.
Registration of a company in Panama is simple, inexpensive and does not require personal presence.
Territorial differentiation in calculating taxes.
Offshore Panama companies that receive income from external activities do not pay taxes on them.
Confidentiality. There are no requirements for the publicity of the personal data of the founders. In addition, the law allows for nominal services.
Capital safety.
The political stability and developed infrastructure of the zone create prerequisites for capitalization and attracting investments.
There are no restrictions on the export of assets outside Panama.
Availability of numerous incentives for investors in various industries.
Exemption of foreign persons from preparing reports.
Main forms of legal and business presence
If you wish to start a business in this jurisdiction and around the world, this can be organized in one of the following main forms:
Limited liability company - a legal entity formed by its members (of two), who bear limited liability for the results of the activities of this entity only within the limits of their contributions. Members of this company can be legal entities or citizens (individuals) of any country.
International Business Company (IBC) – a legal entity that opens up opportunities for doing business around the world, with its members bearing limited liability for the results of such operations exclusively within the value of their investments. In this case, an authorized capital of 10,000 US dollars is traditionally required. Registration of an IBC in Panama requires a minimum of one shareholder and three directors.
Registration Requirements and Steps
Registration of a company in Panama must complete the following approximate stages:
Determination of commercial objectives to be implemented through the entity in Panama.
Choosing and verifying a trade name for the future legal entity.
Setting up the future registered office of the company.
Collection of legally required data for founders (natural and legal persons), beneficial owners and future managers.
Preparation and execution of regulatory documents for the future company.
Submission of a complete set of documents for registration in the Public Registry.
Registration for tax and social security purposes.
Application for and receipt of a commercial license.
Opening of a corporate bank account for a newly opened enterprise.
Obtaining additional permits and mandatory licenses for regulated types of activities that the enterprise intends to carry out.
Legal and Regulatory Framework
Local legislation is quite loyal and provides various opportunities for entrepreneurs, including the issuance of shares with and without par value, simple and preferred, without voting rights and bearer. The country also does not impose strict residency requirements.
Entrepreneurs who decide to purchase or establish an offshore company in Panama need an office registered in the country. Smart Startup UK specialists will take care of the issues associated with its opening. In addition, we provide nominee services.
Any activity that is not prohibited by law can be carried out in Panama.
The main commercial legal acts in Panama are the Corporations Law and the Limited Liability Companies Law. The main local business regulatory authorities are the Ministry of Economy and Finance, the General Directorate of Revenue and the National Securities Commission.
Panama Tax System
Registration of a company in Panama is associated with the following highlights that the local tax system of the jurisdiction offers:
Personal income tax rate – in this case, a progressive scale of rates is applied depending on the amount of income with the highest rate of 25% - for residents, and 15% - for non-residents
Value added tax rate – 7% (of the tax on the transfer of movable goods and services)
Withholding tax rates – dividends – 5/10/20%, interest – 12.5%, royalties – 12.5%
Capital gains tax – rates vary depending on the type of transaction and its value.
Offshore Panama companies that receive income from activities outside of Panama do not pay taxes on it.
How our experts can help
Let's say you are evaluating the formation or purchase of a company in Panama. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in Panama:
Request and collect all data and documents for opening a business in Panama;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in Panama.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including government fees
Obtaining an administrative identification number
Registering the company with government agencies
Writing a company charter
A set of company charter documents in electronic form
Bank contribution for the company's authorized capital
Obtaining a foreign investment permit
Opening an account at: Atlas Bank (Panamá), S.A., Banco Aliado S.A.
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 1800 Euros (paid from the second year)
*Within 45 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euros) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is free and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to be paid to our bank account + the amount for the initial capital of your company.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for Panama it is 45 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and more are carried out through your account on our platform, making it easier to manage your business!
