Are you looking to set up an online casino or betting site but you are not sure which jurisdiction to opt for? Panama could be a great choice for you. Located in Central America, it has long been a hub for financial services and offshore banking, but it also has an established online gaming and gambling industry. Here are just five reasons why you should consider Panama for the incorporation of your online gambling company.
Panama’s iGaming license is one of the most popular in the world and the country has a long history of legal gambling operations including land based casinos, lottery, horse racing, bingo, and slot machines. Licenses are applicable to all of these entities as well as online betting sites and online casinos.
Panama is known for having a progressive legislative system, a great infrastructure, political stability, and a fully-fledged financial services industry.
Internet gaming and gambling companies can operate in Panama with a zero-rate of tax payable on revenue gained from outside of the country. There is no income tax, capital gains tax, withholding taxes, or stamp duty on the transfer of any shares or property. In addition to this, any interest paid by local banks are exempt from tax and there are no controls on foreign exchange. If you are operating an online gambling company from Panama, you will not be required to pay any tax in Panama, of revenue received from outside Panama.
When you incorporate a Panama company for your iGaming operations, you will need to provide the names and addresses of all directors and officers. This must be shown on the Articles of Incorporation and are available to the public, but this can be circumnavigated through the use of nominees. Shareholders and beneficial owners details are not disclosed and shares can be registered on a bearer form but then must be deposited with a custodian. The level of privacy for those conducting business and banking transactions is protected by Panamanian law.
Setting up a Panama company is easy and you only need one sole shareholder and three officers. These can be the same person, can be corporate or individual, and can live in Panama or anywhere else in the world. There is no need to hold annual general meetings and there is no need to file annual returns, tax returns, statements, or financial reports.
To get the gambling license, you need to provide adequate due diligence documents on all of those named in the application, a business plan, proof of financial viability, applicable references and details of gaming software and any third party agreements. Once you have all of this information and it has been submitted to the authorities, decisions and issuance of approved licenses usually happens within a few weeks.
Once you have a license to operate an online casino from Panama, the authorities will closely monitor the sitee to make sure you are playing by the rules and they will also keep a record of every transaction made. You can also expect games to be checked to make sure they are operating under acceptable standards.
Setting up a Panama company is low cost also, your gaming license and applicable payments are significantly lower than many European jurisdictions. The license fee and annual fee over the duration of the license- seven years- is very reasonable, as are the incorporation and ongoing company maintenance fee. When you open your Panama company, there are no initial capital requirements and shares can be issued with par or non-par value.
To find out more about setting up an online casino in Panama or to get advice on company incorporation, contact us today.