Company Formation in Panama – A Gateway to Offshore Business Opportunities

General Information About Company Formation in Panama

Company formation in Panama offers numerous advantages for entrepreneurs looking to establish an offshore business. Located at the crossroads of the Americas, Panama has become a major hub for international trade and offshore business activities. With its rich history and strategic position between North and South America, Panama has developed into one of the most popular destinations for offshore companies.

Panama’s economic environment is particularly favorable for industries such as oil, mining, and import-export. Additionally, Panama boasts the largest free zone in the Americas, which allows companies to benefit from complete tax exemptions. However, it is important to note that Panama is not ideal for business transactions directly with Europe due to its trade regulations.

Types of Offshore Companies in Panama

There are several types of offshore companies that can be established in Panama. Below are the most commonly used options:

1. Panama Foundation
   This type of entity is designed to hold real or personal property, but it cannot engage in commercial activities. The minimum capital required for a foundation is $10,000.

2. Panama Corporation (Sociedades Anónimas – S.A.)
   The Panama Corporation is the most popular choice for offshore companies. It has no minimum capital requirement and requires at least three directors and one shareholder.

Other types of companies are also available in Panama. If you’re interested in a different structure, feel free to consult one of our advisors for a tailored solution.

Key Benefits of Company Formation in Panama

Setting up a company in Panama provides a wide range of benefits for businesses operating globally:

1. Fast Setup: The time to set up an offshore company in Panama is typically 5-7 days.
2. Shelf Companies Available: You can choose from a range of pre-registered, ready-to-use companies to speed up the setup process.
3. No Minimum Capital Requirement: Panama offers flexibility with no minimum capital requirement for most companies.
4. Confidentiality Guaranteed: Panama offers complete confidentiality for business owners. Only directors’ names appear in public records, not shareholders’.
5. Nominee Shareholders and Directors: For additional privacy, Panama allows the use of nominee shareholders and directors.

Legal and Tax Structure of Offshore Companies in Panama

Panama’s tax system is highly advantageous for offshore businesses. With no taxation on offshore companies, businesses can operate without worrying about corporate taxes. This makes Panama an attractive destination for entrepreneurs and multinational corporations.

Additionally, Panama follows Common Law, and the Supreme Court of Justice serves as the supervisory authority for all companies. Bearer shares are authorized, adding another layer of flexibility and privacy for company owners.

Main Activities for Offshore Companies in Panama

With company formation in Panama, you can engage in a wide range of business activities, including:

• Entrepreneurship
• E-Commerce
• Consulting
• Import-Export
• Real Estate Ownership
• Intellectual Property Management and Exploitation
• Estate Planning
• Brokerage Services

These activities, combined with Panama’s favorable legal and tax structure, make it an ideal location for establishing your offshore business.

Company formation in Panama offers a wide array of benefits, including tax exemptions, flexible company structures, and confidentiality. Panama’s status as a premier offshore jurisdiction allows businesses to grow internationally while benefiting from a stable and supportive environment.

Contact Us Today
Ready to start your company formation in Panama? Our team of experts is here to guide you through the process and ensure your business setup is smooth and efficient. Reach out to us for personalized assistance and more information about establishing your offshore company in Panama!