More information about Panama
Panama, officially known as the Republic of Panama, has been connecting the world for generations. The Isthmus of Panama links North and South America, while the famous Panama Canal forms the pathway for shipping between the Atlantic and Pacific Oceans. In addition to its role in facilitating world trade, Panama is also the most important financial center in Central America. Panama’s wealth comes from trade, tourism, canal tolls, and financial services.
A diverse economy is the backbone of this stable country. As may be expected in a country critical to international trade, financial services, including banking, play a vital role in Panama’s economy. For transnational companies, from small businesses to large technology companies, Panama provides an array of opportunities for wealth and taxation planning.
The laws of Panama distinguish between companies that do business in the country and those that only do business outside Panama. Companies that supply products or services in Panama are subject to local taxation, while those that do not do business in Panama do not have to pay any taxes.
A company that does not operate within Panama is known as International Business Corporation (“IBC”). For the privilege of maintaining an IBC, the company pays an annual fixed fee. There are no taxes on business income earned outside Panama. Other advantages of an IBC include confidentiality and no minimum capital rules. An IBC is not required to file accounts, or to disclose names of beneficial owners with the Public Registry Office. By using an IBC, you gain confidentially and keep administrative costs low.
Combined with the potential tax savings, these features make an IBC an essential tool in financial plannings for corporations and individuals. Companies incorporated in Panama must have a registered office in Panama and must have a Panamanian agent. We at OCQ can assist you to start and operate an IBC in a matter of weeks.
We consider Panama to be an attractive jurisdiction for the use of offshore entities for wealth and tax planning. Clearly, many other professionals are of the same opinion: we incorporate over 7,000 offshore entities a year. OCQ can incorporate a company, foundation, or trust in Panama for you. On this point, we provide a friendly word of warning: the company registration process in Panama can be somewhat slow, so it is best to plan ahead and allow ample time to complete this critical step.
Every Panamanian corporation is required to have a minimum of three directors, who may be of any nationality. The residential address of a director is an important part of tax planning. Large corporations will usually employ a local management to avoid any conflicts between the offshore status in the country of company registration and the country of the director’s residence. As local staff is not always practical for small companies, OCQ can also provide nominee directors and shareholders for your Panamanian corporation. They are included in our diamond package.
OCQ offers you our extensive local knowledge and experience in forming and operating an offshore company in Panama. First we know that you want a fast, efficient, and cost-effective method to set up your company. Second we have detailed knowledge of the steps required to form a corporation and have the company registered. And last but not least our experience with financial institutions allows us to suggest which banks are most appropriate for your business needs.
At OCQ we know your time is valuable and we will not contact you unnecessarily by phone, mail, or email. The consultants at OCQ are always available to answer your questions. For further information and to learn more about our services, please do not hesitate to contact us at email@example.com.