Why incorporate a company in Panama?
Contributed by SFM Offshore
01 June, 2020
Panama is home to cities, beaches and an abundance of colonial history. The country's canal links central and south America providing an essential shipping link. Since 2010, Panama remains the second most competitive economy in Latin America, according to the World Economic Forum's Global Competitiveness index.
Located between Costa Rica and Columbia, Panama has direct flights with major cities within the USA, Canada and other countries.
There are many reasons to incorporate an offshore company in Panama aside from benefitting from zero taxation, no auditing and no paid-up capital.
Panama companies can be used for international trade, to settle trusts or foundations, to establish offshore bank or investment accounts and to hold ownership of real estate or intellectual property. Panama companies are extremely flexible and suitable for a number of business activities and are ideal for businessmen, consultants, traders, ecommerce, expatriates and for inheritance purposes.
Panama allows maximum confidentiality and anonymity which allows ease of operations and their territorial tax system means that your Panama company income is only taxed if your business conducts business in the country. The government also does not oblige Panamanian companies to declare offshore activities.
Offshore Panama companies require no residency requirements and are not subject to any nationality requirements in regards to ownership, directorship or shareholders. Corporate assets or capital can also be kept outside of Panama.
Panama companies are not restricted on shares and shares may be held in registered or barrier form.
When it comes to legal business and investment activity there are no restrictions, and these can be conducted from anywhere in the world. There are however restrictions on bank, insurance and trusts which can be settled through prior authorization from the Panama Financial Services Commission.
In order to incorporate your offshore company in Panama you will need all KYC documents (this includes a passport and a copy and proof of address). A description of intended business activity, all of which is subject to due diligence tests. For more information on incorporating your offshore company in Panama visit www.sfm.com
*please note zero tax only applies on income obtained from a source outside of Panama.
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