Is it worth opening a business in Panama in 2023
Opening a business in Panama in 2023 is profitable. The country welcomes investors and provides them with many benefits. For example, a foreigner can fully own the company, and there is no requirement for share capital and no need to pay tax for transferring money into the country. It is worth noting the high confidentiality of shareholders and beneficiaries of the company and the use of nominee directors. And that is not all the advantages of Panama for business in 2023.
Advantages of Panama for Business
Let's look at the list of reasons why it's worth opening a business in Panama:
- Stable political situation.
- Growing economy. The country shows an annual economic growth rate of 6-9%, which is very good for Latin America. The country also has the best credit rating in Central America, surpassing Honduras, Costa Rica, and El Salvador.
- Advantageous location. Panama is at a crossroads that connects different parts of the Americas. There is an international airport that receives more than 1,000 flights per week.
It is also important to mention the benefits the government offers foreigners to register a business in Panama in 2023. Among them, no tax on income earned abroad is brought into the country and kept in local banks.
Panama Free Zones
To attract investors, Panama has created 12 Free Trade Zones. Colon Free Zone and Panama Pacifico Area are the most notable among them.
The Colon Free Trade Zone is the main commercial center of Latin America, second only to Hong Kong. The zone provides direct access to the Caribbean and Latin American markets. Among the advantages are no import duties or income tax on exports.
Panama Pacifico Area is a special economic zone. It offers beneficial tax rates and legal and labor benefits (e.g., offshore services are not taxed) for registered companies. They are attractive for both startups and large companies. Thus, giants such as Dell and BASF have opened their branches there.
Requirements for business registration
- The presence of a registered agent is required.
- Office in Panama is required.
- 100% ownership of the company is allowed.
- Nominee director is allowed.
- Minimum number of shareholders is at least one (legal or natural person).
- The requirements for share capital, but its size determines the bank's willingness to provide corporate lending to the company.
- Presence of the founder at the business registration is not required, and it is possible to perform by proxy.
- Meeting of shareholders must be held in Panama unless otherwise stated in the Charter. If you do not plan to come to the country, the corporate documents should specify the peculiarities of the meeting (for example, virtual videoconference).
How to start a company step by step
- Sign a contract to hire a registered agent. This person will officially represent your interests in the state authorities.
- Rent an office its address will be your company's legal address. It will be where all notices from government agencies will come. Alternatively, the address can be the registered agent's office.
- Shareholders should obtain an individual taxpayer number.
- Development of corporate and constituent documents of the company and their registration with the registrar.
- Obtaining a business license (if necessary).
- Opening a corporate account and making a minimum deposit (set by the bank).
How to register a business in Panama
Contact IT-OFFSHORE experts to open a company in Panama in 2023.