Panama is among the most popular offshore jurisdictions in the world. As rate of economic growth, the government is ahead many developed countries in North and South America. The country`s economy is largely connected with its geographical position. Panama Canal is significant source of income. The development of Free Economic Zone Colon and prosperity of the offshore business are no less important article of the country`s budget replenishment. In addition, the Panama exception from the “gray list” FATF strengthened the image of the country, preventing money laundering and promoting the fight against terrorism. Panama obtained the status of respectable jurisdiction.

There are the following advantages of offshore companies in Panama:

- High level of confidentiality;

- No financial reporting requirements;

- No audit;

- No foreign exchange controls;

- One can use nominee services;

- Accelerated procedure for obtaining residence permit.

Attractive tax system – is one of the main reasons for company registration in Panama. Offshores have no right to carry on business in the domestic market, therefore, due to the lack of commercial activity across the country, companies are exempt from profit tax, capital gain tax, corporate and personal income tax.

High level of confidentiality (governed by the Corporations Act 1927) is due to the lack of requirements for owners and shareholders registration in State Register, such requirement applies to directors. It is possible to use nominee directors (anonymity of owners and beneficiaries retained).

There are the following requirements for offshore companies in Panama:

- Company`s staff should consist of three directors, shareholder (only one), treasurer and secretary;

- Registered agent (resident of the Republic of Panama);

- Register of shareholders;

- Paid authorized capital;

- Registered office;

- Necessity for preservation of meeting minutes;

- Annual franchise tax payment.

There are no requirements to directors citizenship and nationality. Shareholders and directors meetings can be held in any country. One can issue shares with nominal value or bearer (registered in the State Register, kept in the authorized person). The company`s name should not contain abbreviations Ltd and Limited. The end shall contain the words: Corporation Incorporated, Sociedad Anonymous or its abbreviations: Corp .; Inc. or SA. The name may also contain words like: holdings, investments, overseas, etc. and others.

The amount of annual franchise – is $ 300. Timely payment of the state fee in the form of franchise is essential for positive image of the company.

There are the following organizational and legal forms of offshore companies:

- Corporation (Sociedad Anónima (SA);

- Limited Liability Company (Sociedad de Responsabilidad Limitada (SRL).

Company registration in Panama - the most appropriate types of activities:

- international trade;

- e-commerce;

- security trading;

- Provision of the independent consultants services.

Foundation registration

Along with Liechtenstein, offshore Panama is the most popular region for the creation of private interest foundation, which represent the most effective instrument for asset protection. For foundation opening it requires one or more participants, the amount of the minimum payment – is 10 000 US dollars. The Fund Board conducts the management, where may be nominee employees. Beneficiaries may not be among the founders of the fund.

One can register the company in offshore Panama to obtain a residence permit. For residents of the countries that fall under the agreement, it is enough to open working company, transfer on the bank account the amount of $ 5,000 and get the status of resident. The others can get investor visa upon the condition of deposit opening for 160,000 dollars or invest the fund, for example, in real estate. To find out more details on how to register offshore companies in Panama, you can seek for advice to the IT-Offshore company.