Panama is a small country in Central America located between Columbia and Costa Rica. For many years it has nurtured a reputation as a country of choice for those looking to incorporate a business and save money on taxes. Today it stands as one of the longest-standing offshore jurisdictions in the world.
The offshore model of Panama has since become a world standard due to the level of flexibility and confidentiality that it offers. Those that choose to set up in the country can enjoy attractive tax-free opportunities, a very favourable legal environment, a modern banking infrastructure, and much more.
Here are seven reasons why we think you should register a company in Panama!
Everyone has heard of the tax benefits of Panama and there has to be a good reason why over half a million companies are registered here. In a nutshell, it is due to the fact that if a company’s income is obtained outside of the country, the tax rate on that money is absolutely zero. VAT, corporate tax, and sales tax do not exist under these conditions and tax is only payable if revenue and income is generated inside the country. In cases such as this, the corporate tax rate is 25%.
It is very easy to set up and register a company in Panama and the whole process can be completed in around 2 weeks. There is no need to be physically present in the country at any time, no accounts need to be presented to the government, and board meetings can be held in any location, in or out of the country.
No nationality restrictions
Unlike many other jurisdictions, there is no requirement for directors, shareholders, officers or other to be citizens of Panama or to reside there. They can comprise of individuals from any country and can live anywhere they choose.
No monetary restrictions
Funds can flow easily in and out of the country with no restrictions. The government does not implement any restrictions on monetary remittances and there are no currency exchange controls on offshore companies.
Flexible share capital requirements
In Panama, there is no limit on the amount of share capital required for offshore companies. In addition to this, they do not require paid-in capital. Non-voting shares and non-par value shares are also allowed.
Free and stable economy
Panama is a stable democracy with no political unrest. Furthermore it enjoys a steady economy that has been growing consistently, with low levels of inflation. Its banking systems are modern and hi tech with no history of failures. The currency of Panama is the Balboa which is pegged to the USD and USD is also accepted widely.
We can help you
Fast Offshore has been assisting our clients in setting up companies in Panama for over 21 years. As such, it is fair to say that we know what we are doing. We know the system and the process inside out and can guide you through it with ease and minimal effort on your part. We can also assist with opening bank accounts and other corporate and legal matters, depending on your requirements. To discover Panama and the benefits it could have for you, contact us today to find out more!