Business people worldwide face economic crisis in their countries due to bank failures and slumping of real estate markets or factories going offshore to other countries. Then they feel it is the time to relocate to another country. If your country is not stable politically and economically, and you want to save your wealth in a country that can protect your assets, Panama is the best option for you. An excellent place for foreign investment, and many businessmen move their business there to save their investment.
Panama has doubled the economy size in just ten years, and the world economic forum ranked its 2nd most competitive country in Latin America and the Caribbean. Due to canal expansion, economists see their business future in Panama and are very interested in establishing an incorporation company there.
Almost half a million companies incorporated in Panama due to the top-notch business environment for foreigners. There are many reasons why you should incorporate a Panama company not only due to its low taxing jurisdiction. Its flexible laws of incorporation help to foster company international growth and position itself as a prime offshore jurisdiction. If you still have doubt, whether Panama is the best option for you or not, keep reading this post. Here we will tell you ten reasons why you should incorporate a company in Panama and what benefits you can get from doing business there.
1. Beneficial Incorporation Law
The entry and registration of a company in Panama are very easy and simple due to favorable regulations and laws. It takes almost two weeks for company registration there, and you do not need yourself to the country for the registration. Board meetings can be attended anywhere in the world. Besides, the government does not keep any check on accounts.
2. Avoiding income tax
The Panama territorial tax system is also one of the reasons to incorporate a Panama company. The country territorial system does not charge any income tax if the income of your company is acquired outside of Panama. Even no tax is payable if the business is running from within Panama.
Confidentiality is a critical factor in any business and Panama offers full confidentiality in all areas of business such as
- It is not mandatory to include corporate objectives in Articles of incorporation
- Panama has no mutual legal assistance treaties
- Panama keeps the company owner name anonymous by offering bearer shares
- Bank Secrecy laws which do not disclose account information to any third party
4. No Nationality and Residency Restrictions
The incorporated company capital can be taken outside the country, as there are no residency restrictions for shareholders, owners, and directors. They can live in any country and keep any nationality.
5. Government Stability
Government stability plays an essential role in any country’s financial position. Businessmen mostly look for a country with a stable government for their investment, and Panama has a stable democratic government with no political unrest.
6. Colon Free Trade Zone
Panama is situated in a strategic geographic location and has access to many maritime routes and essential ports of Latin America. Besides, it offers duty-free shipment, storage, packaging, and transfer of goods. Additionally, Panama does not impose currency exchange controls on offshore companies, and funds can flow freely in and out of the country. Besides, you will not face any restrictions on monetary remittance abroad.
7. Currency Stability
Business tycoon always looks for a country with its own stable currency for investing their money. World currencies fluctuate, which depends on the economic and political conditions of the country. Because the problem with exchange rates can create many problems for the investors. Panama offers its own currency and banks, which can handle deposits in different countries.
8. Good Communication and Infrastructures
Panama has a modern telephone communication system and a fiber-optic network. Besides, the internal infrastructure such as the airport is large enough for easy travel to other countries and allows easy transportation of water and air throughout the country.
9. Strong Banks
Banks play a crucial role in any country. For investment, a modern and online banking system is required with little or no history of bank failure. A country should have good banking laws for auditing and regulating for shareholders and businessmen for investing their money.
10. Compatible Language
A new country with your native language speaker makes acclimation easier. Panama’s native language is Spanish, while the international business language is English. If expatriates are speaking your language, it will make your adjustment easy in the country. Besides, Panama has a high literacy rate and a decent education institution, which makes it an ideal place for company incorporation.
To sum up, establishing an incorporation company in Panama has several advantages over other countries. It offers opportunities to both individuals and companies to grow their business. The favorable tax regime and strong privacy law provide benefits to both individuals and companies.