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:
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A business in Panama does now not represent an offshore company in the traditional sense.
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Companies in Panama can now flexibly and easily fulfill international requirements (CFC-Rules) and can therefore present themselves as ‘legitimate companies’ abroad.
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Companies in Panama are essentially free to decide whether they want to produce comprehensive accounts with annual financial statements and balance sheets.
A company based in Panama is subject to taxation only in respect to domestic profits, while profits earned outside of Panama are not taxed.
In panama the territorial principle applies!
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.
