• Creimerman Product Team

Create an Off-Shore Company in Panama with Professional Assistance

Large entrepreneurs very often choose to go to the Offshore World, to establish companies and create companies abroad, which means a benefit in reducing taxes and costs, as well as an increase and protection of their assets, obtaining privacy and confidentiality for owners of the company or society before third parties.

Among the benefits that stand out in Panama are the low costs of registration or establishment of the company, the economy of the annual maintenance of the company, the few restrictions, the easy relationship with the banking entities, the non-obligation of the owners of the company to reside in the offshore host country, among others.

In turn, business flexibility stands out as a great advantage, as it includes minimum capitalization rules, low capital maintenance and encouraging financial assistance standards.

In short: Going to the Offshore world means that you have the possibility of being supported by the government with very attractive incentives.

Why choose Panama to incorporate the Company?

In the particular case of offshore companies in Panama, they are recognized throughout the world as a high-value business vehicle, which can be used successfully in a wide variety of international operations such as commercial transactions, industrial products, protection assets, estate planning, etc.

Applying the principle of territoriality, the offshore company will not pay taxes if it does not carry out commercial activity in this jurisdiction. You also will not pay income taxes if you do not earn income in Panama.

Only the offshore company in Panama must pay a single annual maintenance fee, the amount of which is practically symbolic. It goes up to $ 250 the first year and $ 300 the next.

What type of Off-Shore companies does Panama offer?

Pre-incorporated companies

They are companies that were established some time ago and are still operating waiting to acquire seniority. They have never been active and have submitted inactive accounts year after year after their creation.

Government agencies, distributors, and manufacturers often require a company to have been in business for a specific period to do business with it. This is achieved thanks to a pre-established company.

Plus, you can get easier access to business credit. Getting bank loans is easier when you have a proven track record.

International Business Corporations (offshore IBC)

Many offshore financial centers have adopted offshore IBC legislation. Here are some examples of IBC applications:

• A convenient type of entity to open a bank account abroad and obtain a credit card

• A confidential company for an international holding company, acting as the parent company;

• An ideal vehicle for legitimate transactions, such as real estate investments;

• An optimal and confidential way to invest abroad;

• Your own IBC can meet all your private and business needs when you are abroad;

• A practical corporate tool for registering a yacht or boat;

• An excellent framework for employee recruitment initiatives in the international business environment.

The names of the beneficiaries, directors and members are not listed in public documents or registered with local authorities. These people can reside anywhere in the world.

No annual statement and / or audit is required, and all financial data is kept confidential at the company office.

An IBC enjoys exempt status to virtually all types of taxes and stamp duties. For example, you can have millions of dollars in profits and still pay practically no taxes in the country or territory where you are incorporated.

Private Limited Company or Ltd

The fact that you have to manage and file an Ltds accounting improves the reputation of the company. When you need a bank account for your business, working with an offshore corporation will make things easier for you.

Ltd may also be tax-exempt. This is especially true in countries with property taxes, those in which only income earned at home is taxed, but not income earned abroad. Of course, the tax exemption comes at a price. You must ensure that your accounting is accurate and well detailed.

Limited liability companies (LLC)

These partnerships have the benefit of limited liability, but with the division of benefits characteristic of partnerships, so that the profits are divided among the partners based on their participation in the business.

If the members or partners of an LLC are not domiciled and not tax residents within the jurisdiction of incorporation, and the business activities are based outside the country of incorporation, then neither the business nor the members / partners are subject to tax in the constitutional jurisdiction.

As Ltd, LLCs limit liability, but instead of constituting their legal personality, they are fiscally transparent, meaning that income is treated as if it went directly to the owners, thus avoiding taxes on dividends and income. double taxation (taxes at source are avoided).

Which are the requirements?

The incorporation of offshore companies is carried out by presenting the statutes signed before a notary public. This will create a public deed which in turn will lead to registration in the public records.

  • Statutes of Constitution and Corporate Purpose: the name of the company must contain a final ending in Corporation, Incorporated, Sociedad Anónima or its abbreviations: Corp., Inc., S.A. They cannot use the suffix Limited or Ltd.

  • Minimum share capital: e requires the amount of 10,000 paid in any currency. It is not necessary to pay it out at the time of incorporation.

  • Share of capital: the share of capital must be divided into shares.

  • Registered address: the company's address must be located in Panama.

  • Administrators: offshore companies in Panama must have a minimum of three administrators: president, treasurer and secretary. A single person can occupy more than one position.

  • Directors and shareholders: require at least three directors and one shareholder of any nationality.

  • Shares: shares can be bearer or nominal. To adapt to the international standards of the OECD, Panama has incorporated a Registry of Real Shareholders.

  • Accounting and Auditing: it is not mandatory to present the annual financial statements.

What are the steps to create an offshore company?

1. Define your goals and the reasons why you want to go abroad.

2. Make a plan and consult international tax professionals. Paying a little upfront is a no-brainer when it comes to your future peace of mind.

3. Decide what type of legal entity you want to establish.

4. Register your company.

5. Open a bank account in your new jurisdiction. Whether you have to physically travel to the bank depends on a few things, including where your business is incorporated, your nationality, and where you intend to bank.

The "offshore" bank account must be in the name of the company in Panama. For the registration of the offshore company to be truly private, the use of one or more of these legal entities anonymously is required. One way to achieve this when creating the Panamanian company is to hire the law firm that is creating the offshore company and use its staff as directors and officers of the company. These is called "appointed" officers and directors.

You protect yourself from renegade directors and corporate officers by creating an agreement with the law firm that requires officers and directors to follow the orders of majority shareholders at all times.

The central issue for the privacy of the formation of a company in Panama is that the name of the real owner does not appear in the public records or the official corporate records as the name of the members of the board of directors and officers would appear.

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