Everything You Need to Know About Company Incorporation in Panama.
As far as offshore company incorporation goes, Panama is one of the best places on earth to set up your company. This country has a population of about 2. Even though Spanish is Panama’s official language, you will find a lot of people in the urban areas who are fluent in English. This means that as long as you can speak fluent Spanish or English you will have the best time conducting business in this country. Panama corporation legislation does not discriminate against the offshore companies. What this means is that those opening offshore companies will not have a different set of demands which does not apply for the domestic corporation. On top of that, corporations are only taxed on the income that they make from doing business in Panama. You can have your business registered in record time and the process cannot be more than 48 years. Not many countries in the world will be able to boast of this.
You will need to have at three directors taking the position of a president, secretary and also treasurer. The corporation will need at least two shareholders but you will be requested for just a single name before the registration process. Any of the directors can be the shareholders as well and there is no pressure to make sure there is local representation in the company. To make sure there is privacy and confidentiality in the firms, the incorporation will only submit the names of the directors for the public records. Any other shareholder will be kept private. Taxation laws state that any Panama corporation which made a part of the income from other countries will not be required to pay tax for that.This is good news for business people because taxation is one of the greatest hurdle hindering people from starting foreign incorporation.
As long as you are not a resident in Panama, you have no obligation to let the public go through your financial statements. Also, you do not have to keep your shareholder’s register in Panama but you should have one. Directors are not required by law to meet with the shareholders but if a meeting is organized anyone who is not present can participate through teleconferencing. If you want to use the Panama corporation to offer insurance, trust or bank services all over the world, you will have to conduct the Panama Financial Services Commision for authorization. You will have a smooth sail running a business in this country.