How to open an offshore company in Panama
Stable economy, favorable tax policy, and ease of registration are all the advantages to open an offshore company in Panama 2022. There are no currency controls, and income tax is not payable for profits made outside the country. Investors can engage in a variety of commercial activities, such as trade, investment holding and purchase of assets. Panama guarantees complete confidentiality of all transactions, and the disclosure of financial information is punishable by law.
Features of the offshore in Panama
A company is considered offshore if it does not conduct commercial activities within the country. Otherwise, it will cease to enjoy tax benefits and will have to pay 5% of the total income received abroad.
How to register an offshore company in Panama
The process of setting up an offshore company is simple and if you gather all the documents, it does not take more than two weeks. It consists of the following key steps:
- Determining the form of the business. There are several types of companies, the most popular are S.A or AO, which are suitable for many business purposes;
- Preparing documents. Before proceeding with the registration, investors must develop the legal structure of the company and the founding documents. It is necessary to determine the purpose and line of business, as well as choose a unique name, which should end in Corp., Inc. or SA;
- The authenticity of constituent documents certified by a notary;
- Registration of the company in the State Register of Panama. According to the laws of the country, a company is considered legally established when it is registered in the State Register;
- Registration with the General Directorate of Revenue (Dirección General de Ingresos). Here, offshore companies must register as a company, stating their activities, without tax obligations;
- Open a corporate bank account. It allows the owner to better comply with the legal requirement that even an offshore company must keep accounting records;
- Get a commercial license. Any company that engages in commercial activities must obtain a license by contacting the Department of Trade and Industry.
When the above requirements are met, the offshore company in Panama can start operating. After registration of an offshore company in Panama 2022, the company must pay a fixed tax of $300 once a year to renew the legal entity.
Registering an IBC
To register an International Business Company (IBC) you need to have a registered office in the country. This condition applies all over the world and is no exception in Panama. However, the registered address does not necessarily have to coincide with the place where the company operates.
Investors in Panama can operate through a virtual office. This is similar to regular or traditional office space but requires less expenses because there is no need to buy or rent office space. The address is located in a prestigious office building and the virtual office package includes minimal secretarial and other necessary services (our specialist will tell you more exactly).
Privacy in Panama
The laws of Panama require the disclosure of all directors of the company. Investors who strongly do not want to make their names public can hire a nominee whose name will appear in the registers of Panama. Control of the company remains with the beneficiary, with whom he or she signs a fiduciary agreement. The director can be removed from office by filing a letter of resignation. These details are discussed before the agreement is signed and are mentioned in the agreement.
How to register offshore in Panama quickly
To start a business in Panama 2022, contact the IT-OFFSHORE experts and we will help you.