Panama Company Registration (2023 Updated)

Throughout history, Panama has functioned as a regional crossroads, and its favorable topography has made it one of the world's most linked countries. Panama has established itself as one of the best places to do business in the Americas. Panama has evolved from a major marine commercial center to a major international banking and professional services hub.

The country has a robust economy that has been tied to the US dollar since 1904, as well as world-class infrastructure. There are several advantages to conducting business in this little country known as Panama. Because commercial jurisdictions take precedence, a Panama corporation is a perfect vehicle for people who want to conduct business in a jurisdiction with advantageous tax regulations and strong corporate privacy safeguards.

Benefits of incorporating in Panama:

People and geographical locations

It boasts direct flights to any major city in the United States, Canada, and other nations and is located between Costa Rica and Colombia. Panama has established itself as one of the best places to do business in the Americas. It has long functioned as the region's crossroads, and its advantageous geographical location has made it one of the world's most linked countries. Panama has evolved from a major marine commercial center to a major international banking and professional services hub.

The country has a robust economy that has been tied to the US dollar since 1904, as well as world-class infrastructure. Despite the fact that Spanish is Panama's official language, English is extensively utilized in commercial communication. The Panamanian registry has incorporated almost 500,000 offshore Panamanian businesses to date.

Politicals stability

There are several benefits to establishing a corporation in Panama, which has a stable, democratically elected government that encourages international investment. A trained local labor, a low crime rate, and a comparatively inexpensive cost of living are further advantages. It has all of the components for a successful business. Panama's economy has experienced tremendous expansion over the last two decades as an open business climate, free trade zones, and cheap tariffs have attracted investors and entrepreneurs in this country.

Tax incentives

A Panama Offshore Company benefits from a number of tax exemptions and tax incentives, including: no tax reporting requirements, no income tax, no capital gains tax, no sales tax, no tax on the issuance of corporate shares, no tax to shareholders, no stock sale or transfer tax, no capital stock tax, no property tax, no estate tax, no gift tax, no stamp tax, no succession tax, and no inventory tax.

Privacy

Because of its financial prospects, low-risk investments, and booming banking hub, Panama City remains one of the greatest places to do business. Panamanian corporations enable people and firms to incorporate in a country with a long history of financial excellence, both domestically and internationally. Setting up an offshore business in Panama provides total protection, appealing tax-free options, a friendly regulatory environment, and a supporting financial infrastructure, all of which explain why Panama is a top destination for international firms.

Types of company in Panama:

In the Republic of Panama, there are four types of corporation:

• Civil Partnerships: a partnership with a legal personality. Popular with lawyers
• Corporations: companies incorporated in accordance with the Law and limited by shares. The most popular in Panama (the "Company")
• Limited Liability Company: a Panamanian SRL having members instead of shareholders
• Commandite Company: a hybrid of a partnership and a company.

However, Corporation a.k.a Panama business company is  the most prevalent and friendly form of company for foreigners to establish in Panama.

Requirements to form Panama business companies:

Human resources requirements:

• 1 administrative member.
• 3 directors: 1 president, 1 secretary, and 1 treasurer.

Other requirements:

• 1 appointed local agent
• Appoint 1 registered address
• Keep financial record
• Company registered address registration.
• Public registry payments annually.
• A minimum of two shareholders.
• Public directors informations but shareholders and UBO is secret

Services after incorporation:

Bank account opening

In order to meet compliance, you need to open a bank account. Based on your business entity, business industry, business type,etc , we will help you to choose the best types of bank and brand. For later steps, we will guide you in detail as the procedures are different based on different banks.

Bookkeeping

Businesses’ stable development requires proper cash flow management without violating the government’s laws and regulations. Therefore, our team will accompany you with a professional bookkeeping service to maintain financial data accuracy.

The advantages when outsourcing a specialized team of compliance services: Provide a cost-effective solution for businesses that save more time & resources than manual bookkeeping work. And you should engage in bookkeeping to keep financial records ready for year end returns requirements.

How Much Does It Cost to Incorporate a Panama Company?

In Panama, forming a business necessitates a plethora of sophisticated documentation and processes. It is also worth noting that foreigners are required by Marshall Company Law to engage the services of a licensed corporate service provider. CONTACT G.O.C RIGHT NOW to receive the greatest offer and save time.

Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.