A company in Panama

---

The presidential republic of Panama occupies 75 thousand square kilometers of area from Central America. The territory is inhabited by 3.5 million people, the majority of Spanish-speaking people in Panama.

Panama is surrounded by Costa Rica and Colombia, the Caribbean Sea and the Pacific Ocean. Since 1914, the Pacific and Atlantic Oceans have been connected by a canal called the Great Panama Canal, and Panama connects the southern and northern parts of the Americas.

Panama is not only a place with a paradisiacal climate, but also an excellent jurisdiction (tax haven) for doing business. Most non-residents choose this state to open an offshore company.

If you are interested in Panama, offshore and doing business in this jurisdiction, contact Legal Solutions. Highly qualified lawyers will provide consulting and legal services on any issues related to doing business in the international arena - from registration of a legal entity to subscription legal services.

What do I need to know before opening an offshore in Panama? 

Here is a list of key advantages and features of this jurisdiction:

1. Panamanian legal entities are optimal for doing business in various directions - investments, international trade, etc.
2. Panama has adopted a territorial tax system whereby both local and foreign companies are taxed only on income earned within the state. 
3. Flexible classes of shares are allowed, including bearer shares, and capital can be denominated in any currency.
4. Robust protection of confidential information. So far, Panama has only signed tax information exchange agreements with the US.
5. Panama has no exchange controls, facilitating cross-border transfer of funds.
6. Residents of any country can be directors, shareholders or officers of a Panamanian company.

Top 8 reasons to buy offshore Panama

If you're looking for a foreign jurisdiction with an optimal tax climate for doing business, open an offshore in Panama. Here are a few key reasons why entrepreneurs choose this particular state:

• Safety. Many consider Panama a "safe haven" because the country is very stable politically and socio-economically, and because of the importance of the Panama Canal as an international shipping route for trade and commerce. It has special treaties with the United States for protection in case of war or attack. Panama is considered the safest country in Central America and is frequently visited by people from all over the world. Thousands of emigrants from Europe, North America, South America and Asia permanently reside there. 
• It is easy to start a business. It takes only 2 to 5 business days to set up a company. Once the company is established, business authorization is processed online. Municipal taxes are generally very low, depending on what you do and in which municipality you operate.
• Currency stability. Since Panama became a nation in 1903, the United States has allowed Panama to become the first country to adopt the U.S. dollar along with the Panamanian currency called the balboa. The value of the balboa is pegged to the U.S. dollar. Both currencies are traded in Panama. All local banking transactions are usually quoted in balboa, but international transactions are quoted in U.S. dollars.
• Tax benefits. For those doing business in Panama, the tax structure is relatively simple. Panama has a low VAT/sales tax on the sale of goods or services at only 7% (compared to 17-21% sales tax in most other neighboring countries in the region) and a relatively low corporate income tax of only 25%. Taxes on dividends range from 5% to 10%. Panama also has several "special economic zones" or duty-free zones that allow businesses to do business without paying duties. If you're looking to buy offshore in Panama, it's a worthwhile investment. 
• Political Stability. Panama has maintained a democratically elected government since 1989. 
• Economic stability. GDP grows annually with low inflation.
• Well-developed banking system and reliable regulation of this sphere by the state.
• Good communication and infrastructure. Most of Panama's provinces with major cities have airports providing fast domestic air transportation. The main advantage is the ports of the Panama Canal.

Offshore Panama: main features 

In the territory of this jurisdiction, you can choose the optimal organizational and legal form for doing business - corporations, full companies, LLCs, private enterprises, etc.

Here are some features of the formation and operation of Panamanian companies:

1. Corporations can be organized by two or more persons.
2. A minimum of three directors is required.
3. The names and addresses of these directors are publicly available.
4. Offshore companies require officers for the positions of president, treasurer, and secretary.
5. An officer may hold more than one position, but the president and secretary must not be the same person.
6. Meetings of shareholders and/or directors may be held anywhere in the world.
7. The standard capitalization of a Panamanian corporation is $10,000.
8. There are no exchange controls or restrictions on the free movement of currency.
9. A non-resident company is not taxed on its activities outside Panama.
10. An offshore company is not required to keep books or records.
11. There are no requirements to prepare, maintain or file financial statements.

Legal Solutions provides efficient and professional company service in Panama. For more information and to order the service, contact us in any convenient way.

How to open a company in Panama - Legal Solutions services

Our company offers our clients turnkey services for setting up a legal entity in Panama. The list of our services includes:

• legal consultations;
• preparation of a package of documents;
• support of the registration procedure;
• management via internet banking;
• mail forwarding;
• remote debit card management;
• virtual office;
• remote credit card management;
• certification of documents, apostille, etc.

If you have decided to open an offshore Panama, do not waste time and immediately contact Legal Solutions. We bring an expert, professional approach to any task and keep you informed at every stage in the shortest possible time.

---