How and for what should you buy an offshore company in Panama in 2020?
Panama has become a booming offshore and business center in recent years. Its economic legislation is transparent and fully compliant with the requirements of the European Union, the financial market is ahead of many developed countries in terms of growth, and tax rates applicable to foreign companies are still among the lowest. To reduce the time it takes to register a company from scratch, you can buy an offshore in Panama in 2020. It is important that the ready-made company is new and its registered activity codes are aligned with the plans of the new manager.
Panama's laws governing offshore companies
- Law No. 52 of 2016 establishes the rules for the formation and mandatory submission of accounting and tax reports to regulatory authorities.
- The International Convention on Administrative Assistance in Tax Matters, provides for the smooth exchange of information on companies between countries and prevents them from tax evasion.
- Resolution No. 201.1254 of 2018 sets new rules for the registration of foreign companies in Panama that meet international requirements.
- Act No. 129 of 2020, provides for the establishment of a single registry of beneficial owners of foreign companies and effectively repeals the principle of confidentiality characteristic of offshore jurisdictions.
Changes in the country's economic legislation resulted in Panama being removed from the EU "blacklist" and turning into an absolutely legal offshore zone. By tightening control over the activities of foreign firms registered in the country, it has not ceased to attract investors and businesspeople with its flexible and loyal tax policy.
The advantages of Panama's tax system
- Only profits made by companies on the territory of the country are considered to be the taxable base.
- There are no taxes on personal income, dividends, capital gains and interest on deposits received outside the jurisdiction.
- There is no VAT and no duties on transport and equipment.
- Wide range of allowed duty-free activities.
How to buy an offshore company in Panama?
An offshore company in Panama in 2020 may take legal forms of a partnership or a limited liability company. It is easier to own a ready-made company in Panama than to register it yourself. The purchase process will take less time and the expenses will only slightly exceed the registration costs. However, one should not be deceived and assume that the cost of starting an international business will be limited to the amount of purchase. Support of the company also requires regular financial injections.
It is difficult for an inexperienced businessman to single-handedly arrange a purchase and sale transaction due to gaps in knowledge of Panamanian legislation and a large number of individuals trying to get rich by fraud. The best solution would be to get the support of IT-OFFSHORE professionals. We will be able to control the process of the acquisition of an offshore company in Panama and to help with paperwork.