Panama has cut a name as the best destination for international business. It is a country on the extension that links South America and Central America. The famous Panama Canal cuts through the country making it a center of international trade especially for traders avoiding the lengthy stretch around South America.
Its administration has been keen to develop a business economy by supporting new enterprises to come and operate from there. Whether you are in gaming, hospitality, fintech, or telecoms, this is one jurisdiction that holds huge potential. In this post, we take a closer look at the things you need know about company incorporation Panama.
The main benefits of incorporating a company in Panama
If you decide to take your business to Panama, the jurisdiction guarantees the following advantages.
- No minimum requirement for limited liability companies.
- The jurisdiction does not have restrictions on the number of shareholders for companies or nationalities.
- It is a financial hub that has attracted some of the biggest financial companies in the globe.
- There are no taxes on capital held by companies formed in Panama hold.
- The jurisdiction serves as the main gateway to South America and the United States.
The requirements for registering a company in Panama
The process of company incorporation Panama has to be done through an agent. This method is used to help make the process of registration easy and professional. Here are the main steps to follow.
- Start by selecting and contacting a law firm that is allowed to help with offshore company registration. The selected firm will assist with the company creation and will also be the resident agent.
- You have to work with the agency to get the right business name. Simply provide some options, and the agency will carry the name search in the Public Registry.
- Provide the agency with three persons who will serve on the executive board as the treasurer, secretary, and president. For those who want to get total anonymity, the firm will suggest persons to act as nominees.
- The company agent will ask for any other detail that the investor needs to complete the incorporation procedure.
The authorized capital
In Panama, the standard authorized capital is US$ 10,000. This capital has to be divided into 100 registered shares with a value of $100 each. The authorized capital means the amount that a company would receive from the shareholders. By the time of incorporation, all the shares must be paid. This means that if the company has one shareholder, he is supposed to have paid US$10,000.
Taxes and annual records
Once your company is incorporated in Panama, only the revenue generated in the jurisdiction is subject to taxes. This means all taxes including capital gains tax, stamp duty, and income tax. However, any income generated outside the country is not subject to any tax.
One of the things that make Panama a top destination for international business is its focus on privacy. After company Incorporation Panama, the information about shareholders as well as beneficiaries is not included in the Public Registry Office. It is also not available to the public. The only public place where the address and names of directors and top officers are captures is the Articles of Association.