Setting up an offshore company isn’t as hard as many people believe. Yes, there are many steps to the process, and many variables that you need to consider. However, the benefits of making the move can be extensive.
So, why are so many corporations choosing to take their operations offshore? What is so attractive about moving your base of operations to a different country?
Here are 8 of the most common reasons corporations move offshore.
#1 It’s a Global Marketplace
Trade and investment opportunities are not limited to a single country’s borders. The continual globalization of nearly every market means that companies need to change their ways of thinking. If you want to grow and improve revenues, then you need to consider locations where there may be more benefits than those offered by your home country.
#2 You Can Protect Your Assets
When you set up an offshore company in Panama, you will have several options to protect your assets. This includes tax advantages, privacy laws, and other protections against third-party claims.
#3 The Process is Relatively Simple
Forming a Panama offshore company is relatively simple, as long as you’re working with an experienced law firm in the country.
You can set up almost any type of company offshore, including trading companies, LLCs, corporations, etc., and then it’s just a matter of starting the paperwork.
The process can take about 5 days, as long as everything is in order and your paperwork is ready to go. Then, it’s a matter of funding the company to keep it going.
#4 There’s a Reliable Banking Infrastructure
Banking and other financial services have always been a critical part of doing business in Panama. Our banks are subject to some strict privacy regulations, and it opens up opportunities to invest in foreign stocks, and other bonds and mutual funds that may not be available in your home country. This is a great way to diversify your investments and (once again) protect your assets.
#5 It Can Act as a Trading Company
International importing and exporting is an extremely complex process, but an offshore Panama IBC can perform the functions of a trading company to make things a little easier. Basically, you can set up a second corporation to handle the fulfilment of the orders while the profits are captured offshore and sent to an offshore bank account.
When everything is set up correctly, it can lead significantly improve cost efficiency and provide a number of time advantages for the company.
#6 Tax Planning Is Very Different
One of the most important benefits of an offshore company in Panama is the tax treatment you get, because it is based on the Panamanian tax principle of territoriality.
Basically, the only thing that gets taxed in Panama are the incomes or profits generated within Panama itself. Any income generated from activities outside of the country are exempt. This refers specifically to the Panama side obligations, you should consult with a tax specialist in your home country to confirm that you are complying with your local obligations.
#7 Confidentiality Is an Asset
In Panama, we really put a high priority on corporate privacy. If you have chosen not to be listed on the public records for the company, no one is allowed to even acknowledge the existence of a bank account in your name.
This level of privacy also extends to the company shareholders, who can be appointed through private documents. It’s a simple thing, but privacy matters here.
Experience a Different Lifestyle
While you don’t have to live in Panama to set up an offshore corporation here, those who choose to make a home inside our country can experience a whole new kind of lifestyle. There are new and wonderful experiences to have here, it’s a safe place, and you can expect your dollar to go much farther.
This is a chance to become part of an international community.
Is an Offshore Company Right for You?
These are all great benefits that can impact how you run your business, but it may not always be the best solution for a company.
At Mata & Pitti Attorneys at Law, we can help you determine whether or not an offshore company is right for your business. We can discuss with you the pros and cons of making such a move so you can make an informed decision. We will guide you through all the reasons we’ve listed here and make sure you understand all the ramifications of setting up a company in Panama.