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  • Panama company formation without the stigma of an offshore company

     

    TERRITORIAL TAXATION

    Panama only taxes domestic income. A company in Panama is therefore not subject to the national corporation tax, providing that the profits are earned outside of Panama.

     

    FULL-SERVICE PACKAGE

    You will receive a complete corporate package, with all original documents, including apostilles and certified copies. Additionally, we are offering you... More >

     

    LIBERAL REGULATIONS

    Panama offers companies enormous freedoms and flexibilities in all aspects. The CFC-rules can be fulfilled safely and without complications through the use of management packages.

     

    FLEXIBLE MANAGEMENT PACKAGES

    Depending on the purpose of your business in Panama and the national CFC requirements of your customers abroad, we can offer you appropriate and secure services through our management packages... More >

    The advantages of forming a company in Panama

    Panama has in recent years not been a world leader, at least in respect to setting up offshore companies. Branded by various media buzz-words, such as ‘Tax Haven Panama’, ‘Panama, Home of Shell Companies’, ‘Panama Papers’ or ‘Panama Tax Oasis’, Panama was too heavily burdened as a corporate location for international businesses.

    With the turn of the year 2018/19 and the introduction of the internationally applied CFC-rules, the tables have now turned for Panama, and the founding of a company in Panama is since 2019 once again in high demand among internationally active businesspersons.

    The key reasons:

    • A business in Panama does now not represent an offshore company in the traditional sense.
      Find out more under: Details of a business in Panama
    • Companies in Panama can now flexibly and easily fulfill international requirements (CFC-Rules) and can therefore present themselves as ‘legitimate companies’ abroad.
      Find out more under: Management Packages
    • Companies in Panama are essentially free to decide whether they want to produce comprehensive accounts with annual financial statements and balance sheets.
      Find out more under: Bookkeeping and Accounting

    A company based in Panama is subject to taxation only in respect to domestic profits, while profits earned outside of Panama are not taxed.

    A company in Panama, adapted in its structure to the current CFC-Rules and individual needs, has thus nothing more to do with the internationally disreputable ‘shell companies’ nor the dusty image of offshore companies - although, the benefits are still strongly reminiscent of the former advantages of an offshore company.

    YOUR ADVANTAGES

    Some further advantages to forming a company in Panama

    • A business in Panama, in short ‘Panama company’, is not required to manage its corporate accounts within Panama itself;
    • The shares can be held 100% abroad and there is no need to have a local shareholder;
    • It is permissible in Panama to use trustee directors (Nominee-Directors), with individual agreements governing their rights and obligations;
    • Trustees do not automatically have access to the assets of the company – it is therefore recommended to arrange individual contracts with the ‘trustees’ and respective agreements with the account holding bank(s). We are happy to assist you in this as part of our management packages;
    • Panama has no currency or foreign currency restrictions. For a Panama company there are no restrictions on bank transfers, currencies can be chosen freely and capital ‘withdrawn’ without limitations.

    Nominee-Service (trustee) and security

    The Nominee-Service we offer already begins with the formation of your company in Panama. This means, irrespective of which management package you choose for your business, we guarantee the Nominee-Benefits as soon as you register your company with the respective register in Panama.

    Additionally, you can terminate the Nominee-Service in writing at any time and without the need to provide a reason. There is therefore no contractual notice period in relation to the Nominee-Service offered by us.

    The most important benefit our service offers your business in Panama is: regardless of the choice of management package, our ‘Strategic Business Consulting’ department offers you the following services:

    • Up to three Nominee-Directors
    • Detailed advice on the needs-based use of directors,
    • Preparation of individual contracts for directors,
    • An introduction to the foundations of corporate documentation that provides a framework and guide for the directors of your company.

    In this way, it is not only possible to prove that management really exists at the company's headquarters, should a third party require this, but management can also keep a firm hold on the company and its assets.

    Legal Notices

    Privacy Management GroupFZ-LLC regularly checks and updates the information on its websites. Despite all due diligence, it is possible that some facts have changed in the meantime. It is therefore not possible to assume liability or provide any guarantee as to the relevance, completeness or correctness of the information provided. The same applies for all other websites that are accessed through the hyperlinks provided. Privacy Management GroupFZ-LLC is not responsible for the content of websites that are accessed through these links. Furthermore, Privacy Management GroupFZ-LLC reserves the right to make changes or additions to the content provided. In addition to the content and structural copyright protection rights of Privacy Management GroupFZ-LLC websites, the reproduction of information or files, in particular the use of texts, extracts or images, is prohibited without the prior written consent of Privacy Management GroupFZ-LLC.

    None of the content on any of the Privacy Management GroupFZ-LLC web pages represents an individual recommendation nor is it to be understood as an invitation to trade, default or purchase. Privacy Management GroupFZ-LLC also explicitly points out that you should seek advice from experienced tax consultants and/or lawyers, in particular for any cross-border activities. In principle, any income generated domestically or internationally is subject to taxation. It is solely your responsibility to fulfil your domestic and/or international tax obligations appropriately. Privacy Management GroupFZ-LLC does not accept liability under any circumstance. Additionally, our General Terms & Conditions as well as our Data Protection Provisions and Legal Details apply.

    Asset Protection

    CFC-Management-Services

    The taxation of companies on an international level generally follows the principle of decision-making power. A company is thus taxable in the country where ‘Management & Control’ is exercised. In general, international authorities assume that ‘Management & Control’ of a company is exercised in the same country where the general manager/director resides.

    Therefore, if you live outside of Panama, it makes sense to have at least local managing directors/directors in Panama. The level of authority of these Nominee-Directors can be determined individually according to personal needs and legal requirements.

    In addition, in most cases at least one foreign business address or even a foreign business premise is required. For this, we offer appropriate packages, with which this can be verified.

    Note: It is of course also possible to hire local managing directors instead of using nominee directors, should you prefer to do so. We are happy to advise you on the one-off and running costs upon request!

    Annual fees are only due after the first 12 months

    The annual fees are not due for payment until 12 months after the formation of your company in Panama. In the following years the settlement of the annual fees follows a 12-month cycle.

    For example: You establish a company in Panama on 14.07.2019. The start-up fees already include all the costs for the first year, with the exception of costs for optional services. After 12 months, at the latest on 14.07.2020, the annual fees for your company in Panama are due for payment (plus any optional services). Subsequently, the payment date recurs every year on 14th July at the latest.

    Renewal of the management fee annually USD 740.00
    Registered agent annually USD 245.00
    Registered office annually USD 245.00
    Corporate franchise fees annually USD 300.00
    annually

    Annual fees are only due after the first 12 months

    The annual fees are not due for payment until 12 months after the formation of your company in the Seychelles. In the following years the settlement of the annual fees follows a 12-month cycle.

    For example: You establish a company in the Seychelles on 14.07.2019. The start-up fees already include all the costs for the first year, with the exception of costs for optional services. After 12 months, at the latest on 14.07.2020, the annual fees for your company in the Seychelles are due for payment (plus any optional services). Subsequently, the payment date recurs every year on 14th July at the latest.

    Renewal of the management fee annually USD 190.00
    Registered agent annually USD 210.00
    Registered office annually USD 210.00
    Corporate franchise fees annually USD 190.00
    annually

    CFC-Management-Services

    The taxation of companies on an international level generally follows the principle of decision-making power. A company is thus taxable in the country where ‘Management & Control’ is exercised. In general, international authorities assume that ‘Management & Control’ of a company is exercised in the same country where the general manager/director resides.

    Therefore, if you live outside of the Seychelles, it makes sense to have at least local managing directors/directors in the Seychelles. The level of authority of these Nominee-Directors can be determined individually according to personal needs and legal requirements.

    In addition, in most cases at least one foreign business address or even a foreign business premise is required. For this, we offer appropriate packages, with which this can be verified.

    Note: It is of course also possible to hire local managing directors instead of using nominee directors, should you prefer to do so. We are happy to advise you on the one-off and running costs upon request!

    CFC-Management-Services

    The taxation of companies on an international level generally follows the principle of ‘location of decision-making power’. A company is thus taxable in the country where ‘Management & Control’ is exercised. In general, international authorities assume that ‘Management & Control’ of a company is exercised in the same country where the general manager/director resides. .

    Should you intend not to take on the position of local manager/director, despite having an investor visa, we can provide you with the appropriate trustee-service that will manage this position for you – a nominee is a natural person residing in the UAE. Similarly, should you not wish to officially appear as a shareholder of your Freezone-company in RAK, even in this case we can satisfy your requirements through the use of an appropriate Nominee-company. Let’s talk about it, we are at your disposal!

    CFC-Management Packages

    The international CFC-Rules are of particular importance when a Panama company wants to, for example, send invoices to companies based abroad.

    Each country implements CFC-Rules on a national and individual basis and thus makes different demands on the substance and structure of a foreign company. For the benefit of your customers, business partners and contractors and with the aim of not losing them, for example through ‘denied business expenses’ in your country of residence, you should adapt your company to international standards. In regards to this we can support you with one of our management packages.

    CFC Management Packages

    The international CFC-Rules are of particular importance when a Seychelles company wants to, for example, send invoices to companies based abroad.

    Each country has implemented the CFC-Rules on a national and individual basis and thus makes different demands on the substance and structure of a foreign company. For the benefit of your customers, business partners and contractors and with the aim of not losing them, for example through "denied business expenses" in your country of residence, you should adapt your company to international standards. In regards to this we can support you with one of our management packages.