Panama: Here is why establishing your corporation offshore will benefit you
If you are looking to establish a new corporation this year, perhaps your best opportunity could be found offshore. It must be said that with cross-border business activities, there are often many benefits on offer, from tax breaks to entirely different rules which could aid your adaptability to target markets. Many rules and regulations have been modified throughout the last year due to the pandemic, meaning that it is a bit more complicated to establish certain businesses while also remaining within the new confines set in place around the globe. However, one place which has always presented itself as ahead of the rest in offering competitive benefits to those who wish to set up corporations overseas is Panama. If you have considered moving offshore, perhaps these reasons can be the deciding factor to encourage you to make the move to Panama in order to further enhance your business portfolio.
According to ‘Offshore Protection’, since 1927, when the General Corporations Law was passed, more than 400,000 corporations have been registered in Panama. It is clear that there is a high level of attraction to the nation, and perhaps one of the underlying reasons for this is reinforced by the lack of payment of taxes, some of the more substantial of which include:
1. Income tax
2. Corporate tax
3. Capital gains tax
4. Estate tax
The exemption of these payments is only if your corporation will not engage in business within Panama itself. Therefore, if you are looking to establish your corporation abroad with the aim of accessing benefits not found in your own nation, but with the intention of operating there, maybe Panama is an ideal location for you.
With many countries imposing strict regulations and monitoring protocols in various sectors, there is something to be said for owning your business anonymously and without external pressure to share detailed information on demand. These are a few of the benefits you could gain from setting up your corporation in Panama, specifically, the fact that share certificates can be in Bearer form, in other words, anonymous ownership and reserving your right to privacy in your international affairs if you wish.
As well as this, Spanish and English are the predominant languages, therefore the travel links with many Latin American nations, Europe, the United States of America and Canada are all additional reasons as to why it is a perfect location to take business, as access is easy and there is no substantial language barrier upon arrival.
The Creimerman family is made up of global citizens, each bringing their own expertise and ultimately specialising in cross-border operations. We understand that sometimes the benefits of opportunities such as offshore corporation establishment in Panama can seem fantastic, but at the same time daunting. This is why we would love to help you along your journey, and if you wish to find out more, contact us today!