Is it worth opening a business in Panama in 2023

Opening a business in Panama in 2023 is profitable. The country welcomes investment, provides many benefits. For example, a foreigner can fully own the company, there is no requirement for share capital, no need to pay tax for the transfer of money into the country. It is worth noting the high confidentiality of shareholders and beneficiaries of the company, as well as the use of nominee directors. And that is not all the advantages of Panama for business in 2023.

Advantages of Panama for Business

On 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, 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 thousand flights per week.

It is also important to mention the interesting benefits that the government is offering to foreigners to register a business in Panama in 2023. Among them, there is no tax on income earned abroad that is brought into the country and kept in local banks.

Panama Free Zones

In order to attract investors, Panama has created 12 Free Trade Zones. Notable among these are the Colon Free Zone and Panama Pacifico Area.

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 pluses are no import duties or income tax on exports.

Panama Pacifico Area is a special economic zone. For companies that are registered within it, it offers interesting tax, legal and labor benefits (e.g., offshore services are not taxed). They are interesting for both startups and large companies. Thus, such giants as Dell and BASF have opened their branches here.

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 at least one (legal or natural person).
• The requirements for share capital - no, but its size determines the bank's consent to lend the company.
• Presence of the founder at registration of a business - is not required, it is possible by proxy.
• Meeting of shareholders must be held in Panama, unless otherwise stated in the Charter. If you do not plan to come here, the corporate documents should specify the peculiarities of the meeting (for example, virtual videoconference).

How to start a company: basic steps

• Sign a contract to hire a registered agent. This person will officially represent your interests in the state authorities.
• Rent an office, the address of which will be your legal address. This 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, their registration with the registrar.
• Obtaining a business license (if necessary).
• Opening a corporate account, making a minimum deposit to it (set by the bank).

How to register a business in Panama

To open a company in Panama in 2023, contact IT-OFFSHORE experts.