Business registration in Latin America
If you are thinking about an offshore company, consider registering a business in Latin America. Panama, Dominica, and Uruguay are particularly well suited. They offer low taxes and actively promote IT technology, which allows you to run a company from anywhere in the world. The registration procedure is quite simple, and the financial reporting requirements are minimal. Their only drawback is low prestige. Nevertheless, there are many international banks in these countries that allow you to easily make transactions abroad.
By registering an offshore in Panama, you can take advantage not only of tax benefits but also of other opportunities including the following ones:
- Fast registration - up to 2 weeks.
- No reporting.
- Ability to hold meetings anywhere in the world.
- No tax for income generated outside of Panama.
- High asset protection.
- No currency controls, so money can safely enter and exit the country.
- All directors, shareholders, and officers can be foreigners.
- It is possible not to contribute paid-up capital at registration.
Panama provides complete confidentiality. The issuance of bearer shares is possible there, and it allows the owner to remain anonymous. Corporate purposes can be excluded from the Articles of Incorporation. The bank secrecy law prohibits the disclosure of information to third parties. Also, Panama has not entered into treaties of mutual legal assistance with any countries.
The Panama Canal connects the Pacific Ocean and the Caribbean Sea, and it provides rapid transportation of merchandise. The Colón Free Trade Zone is located on the Atlantic side of the country. It provides access to important ports in Latin America and offers duty-free storage, repackaging, and re-routing of any goods.
Commonwealth of Dominica
An International Business Company (IBC) registered in Dominica is tax-exempt for 20 years. The company can be fully owned by a foreigner, and annual and financial reports are not required.
Other advantages of opening a company in Dominica include:
- Fast registration with the complete filing of all documents takes only 1-2 days.
- High confidentiality - beneficial owners are not on public lists.
- The law does not allow the disclosure of confidential information without a court order. The penalty is a $25,000 fine and 2 years in jail.
- Only 1 shareholder is needed to register a business, and the same person can also be a director if needed.
- Authorized capital is starting at $100.
- No audits. The accounting records can be kept any way you want.
- A meeting of directors and shareholders is not required.
- English and French are official languages in the island country, so there are no problems with finding translators.
To enjoy the benefits, the IBC must not work with residents of Dominica and own real estate on the island. It the company wants to provide banking, insurance, or trust services, it is required to get a license.
Uruguay is a forward-looking country that is actively developing in many aspects. It boasts a good infrastructure, high-quality education, and a low level of corruption. The services sector is particularly active, accounting for 72% of GDP. Many residents have high incomes and belong to the middle class, so they have a high quality of life.
Other advantages of Uruguay include:
- Financial and political stability.
- The low crime rate, especially when compared to other Latin American countries.
- A well-developed banking system.
- Tax incentives for foreign investors.
- Skilled labor force.
- Twelve free economic zones provide numerous benefits for businesses. Local companies pay no tax on profits made outside of Uruguay.
A company registered as a corporation (Sociedad Anonima) or Limited Liability Partnership is exempt from tax on profits, dividends, and capital gains.
How to Register a Business in Latin America
To register a business and open a bank account in Latin America, contact IT-OFFSHORE experts.