If you want to register a company in Panama, here you’ll find a great port of entry to this country. We’re talking about a breathtaking nation between two oceans, with everything a business center must have: great policies, financial incentives, and tax benefits.
Moreover, the country is home to a convenient corporate regime available for all foreigners and locals who have decided to open a company in the country of the canal. Luckily, Mundo provides a variety of corporate services abroad, and we are fond of this jurisdiction.
Panama Company formation as the ultimate solution
Panama: more than a nice destination
Thanks to its pristine beaches along two oceans and developed infrastructure, Panama is a popular tourism hub; nevertheless, this isn’t its main industry: business is.
The country is home to the Panama Canal, which has been operating since 1914 and has been in the hands of Panamanians for several years now. This autonomy has boosted the country's growth, as we can see in all its sectors, from real estate to infrastructure and migration visas.
When it comes to population, the isthmus has roughly 4 million inhabitants, many of whom are foreign residents. This results in a cosmopolitan environment and a highly tolerant place for everyone to cohabit peacefully. As Mundo likes to say, Panama looks like Miami, but it's like a little New York in the sense that it is home to varied ethnicities, religions, and ways of living.
Why open a company in Panama
Easy process
The country of the canal offers an easy path to establishing your own company. Moreover, through a company, it is possible to obtain a 2-year residency permit with the Friendly Nations Visa.
To be classified as eligible, applicants need to be from one of the friendly nations, plus form their own company and hire themselves under it. This opens the door to a number of corporate benefits, as the reader can see below.
Free zones and special economic zones
Panama has always been a business-oriented nation, a feature that has been enhanced in the past two decades. Pro-business governments have boosted infrastructure, set forward interesting residency permits to attract foreign talent, and established convenient policies for corporations.
The free zones are located in specific areas and provide benefits to businesses that focus on certain activities, like import and export. The Colon Free Zone is the most famous one in Panama and in the world, as the second largest worldwide and the largest in the region. Other well-known special economic zones are Ciudad del Saber, Panama Pacifico, Albrook, and others.
Dollarized economy
One of the reasons why companies choose to set up their headquarters here is the dollarized economy. There's nothing more convenient for a company than having an account in U.S. dollars, thus facilitating international transactions and reducing exchange rates.
Territorial taxation
Panama is one of those countries that doesn't tax foreign income. Naturally, the matter of taxation needs to be approached carefully and cleverly. Filing may be required even if taxation is 0%, plus the company may still be taxable in other jurisdictions. This is why Mundo strongly recommends consulting with a tax expert in each jurisdiction involved.
Besides, income tax is lower than in other places, especially the US or the EU, which (when added to the free zone incentives) makes Panama incorporation quite a sweet deal.
Wide variety of residency permits
Your company needs employees, and you may need to bring them from other branches. Maybe this is what the government had in mind when they set forth an ample array of visa permits to help foreigners become residents in the country of the canal. From an option for retirees to a full residency by investment program, similar to European golden visas, Panama brings an alternative for everyone.
Outstanding banking
You can't even start to think about a company without considering banking. Well, there is good news: The country of the canal is amply known for its world-class banking services. Operating under CRS, like most countries, the isthmus provides a solid structure for your company to rely on. State-of-the-art security measures, highly developed online banking, and comprehensive services are some of the main characteristics of Panama’s banking sector.
Characteristics and requirements of companies in Panama
Directors: three directors have to be appointed. They can be from any nationality, and they can be a natural person or a company. Directors’ meetings may be held anywhere in the world.
Shareholders: your Panama company must have at least one shareholder.
Public records: the officers’ information appears in public records.
Company Name: it can be in English and Spanish or in other languages with due permission, and it must include the corresponding suffix.
Minimum capital or maximum capital: no restrictions
Standard authorized capital: USD 10,000
Annual obligations: the company must be renewed annually, and financial statements must be filed each year. For more information about this, please consult with your Mundo expert.
All in all, Panama maintains itself at the forefront of international business and constitutes one of the friendliest environments in the region and one of the most important trading and maritime centers in the world.
This is why, at Mundo, we don't hesitate: even though we can establish companies in several other places, Panama is definitely one of the strongest alternatives. We are definitely proud to offer it as a highly convenient corporate option for Mundo readers.
Disclaimer: All the fees and requirements in this article are viable till the date of publication and may change as they depend on many factors. For an updated set of requirements and fees, please contact your Mundo expert.
Why open a company in Panama with Mundo
We can give you the best in the international business sector. Mundo’s experts have been helping entrepreneurs and businesspeople for years.
Don’t hesitate to contact us and ask for more information as well as asking for a bank account to complement your company in Panama. We work with several banks in different jurisdictions so that you can manage your finances and run your business accordingly.
Our corporate services in Panama are top-notch because they come with experience, knowledge, and commitment. Mundo is an international publication for the perpetual traveler and businessperson who doesn’t compromise when it comes to his/her finances. Going out of your comfort zone may seem like a leap of faith at the beginning, but it’s the best way to achieve your financial goals.
If you like what you’re reading, please contact us and meet your Mundo representative.
Contact us
.jpg)
.png.small.WebP)
.webp.small.WebP)
.png.small.WebP)
