Buy a company in Panama in 2020
Given the beneficial geographical location and political stability, it is profitable to buy a company in Panama. The country has taken measures to develop its economy and attract foreign investment.
An offshore company in Panama, which does not do business in this country, is exempted from almost local taxes. This makes the jurisdiction attractive to those looking for a stable economic environment for opening a company.
The main factors of popularity of the country
Many businessmen are willing to register a company in Panama. There are some advantages to why it is worth developing a business in this country. One of those is a favorable geographical location.
The jurisdiction has a well-developed and stable economy. Due to the peculiarities of the taxation system, the state has a favorable business climate. According to the legislation, some companies can get an exemption from paying tax fees - those are offshore and non-resident organizations.
Popular forms of companies
The most common organizational and legal forms of companies are general and limited partnerships. A general partnership (GP) means that the owner is responsible for the interior climate of the company. The consequences of certain decisions can affect all owners of the company.
Two to twenty partners can participate in limited partnership (LP). There are some capital requirements: the minimum capital is $2,000, and its largest is $500,000. There are no restrictions on citizenship status. To learn more about the characteristics of each of the legal forms, please contact our specialists at IT-OFFSHORE.
Features of registering a company in Panama
Before registering a company, a name must be created. The name of the company must has to be unique. It should not contain any common words, including those related to banking activities. Registered companies may not engage in insurance as well as some other activities without permission.
Once the name is provided, it has to be checked for its authenticity. Next, the structure must be agreed on. As part of the process, it is determined who will be the shareholder, the director, and how the shares will be distributed.
When planning the registration of a company, a number of documentation is required:
- Memorandum of incorporation, charter;
- Data on the appointment of the director;
- Registrations of shareholders, directors, etc.
An optional condition is the personal presence of the owner. However, in order to operate, an office within the country is required and the agent must be a resident of Panama.