Creating an offshore company in Panama is more attainable than most businesses owners realize. There are many benefits to using this business strategy, and not just for big corporations. With over 500,000 corporations registered in Panama, it is really no surprise this has become a hub for offshore companies.
If you are considering whether creating Panama offshore corporations is right for you, here are the top five reasons we recommend it.
- Tax Benefits. One of the main reasons that companies are created is for the tax benefits. Because Panama functions as a territorial system, any income earned outside the country does not get taxed. That means transfers or acquisition of securities, bank accounts, investments, dividends, and the transfer or sale or real estate done where you live are not subject to Panamanian taxation. It is important to note that any income earned inside the country are taxable.
- Asset Protection. Creating an offshore company in Panama can protect assets, including real estate anywhere in the world. It can function as a holding company for assets. A Panama offshore corporation can also hold intellectual and property rights such as patents, trademarks, licenses. This adds another layer of protection to the things your company wants to keep safe from lawsuits, paperwork, and extra taxes.
- Confidentiality. Corporate privacy is a high priority for Panama. Their banking laws are among the strictest in the world. No one is ever allowed to share your name or any banking information. Bank employees are not even allowed to acknowledge the existence of an account in your name. Additionally company shareholders are appointed by means of private documents, therefore, the identity of the shareholders are not exposed on the public company records.
- Stability. Panama is a very stable country across the board. The government is strong and stable since 1989. The economy has continued to grow every year since 2005 despite other recessions through the world. There is also low inflation. The country has had a reputation for being strong financially.
- It’s Easy. Setting up a corporate offshore business is easier than you think. It does not require any traveling into and out of the country, though it is possible if it makes you more comfortable. The lawyers who help set up the offshore company can do it all quickly without much work on your end. In fact, most people wonder why they waited so long and how they could have been so intimidated over the easy process. And with such a great communication system set up in Panama, you never have to worry about not getting ahold of you lawyer again.
If you have more questions about whether setting up an offshore account in Panama is right for you, feel free to reach out and ask some questions. We are always happy to help provide answers or walk you through what to expect. So what are you waiting for? Contact us today to see if creating an offshore company could be the right move for your business.