Everything You Should Know About Company Incorporation in Panama.
Anyone who wants to start a business outside his or her home country should be looking at Panama because the jurisdiction favors foreigners who want to conduct business there. This country has a population of about 2. Also, the official language is Spanish but many people in the urban areas speak fluent English. Therefore, anyone who can converse in English or Spanish will have a smooth sailing when doing business in this country. Panama corporation legislation does not discriminate against the offshore companies. This means offshore corporations will not have to fulfill a lot of insane demands before they can be allowed to operate. Only the money you have made doing business in Panama will be taxed which is even better news for business people because they will not have to pay double taxes. You will be surprised to note that corporations are usually registered and allowed to start operating in less than 2 days. There aren’t many countries around the world where you can be assured of this.
When it comes to forming your corporation, you should have three directors on board who will be your president, treasurer, and the third one will take the position of a secretary. You have to show that the incorporation has two shareholders but you only have to present the name of one before registration. Any of the directors can be the shareholders as well and there is no pressure to make sure there is local representation in the company. To make sure there is privacy and confidentiality in the firms, the incorporation will only submit the names of the directors for the public records. Any other shareholder will be kept private. If the corporations can show that some of the income they made came from outside the country then they will be tax exempt. Panama has the best taxation rules for a corporation in the world.
As long as you are not a resident in Panama, you have no obligation to let the public go through your financial statements. Also, you do not have to keep your shareholder’s register in Panama but you should have one. Directors are not required by law to meet with the shareholders but if a meeting is organized anyone who is not present can participate through teleconferencing. Incase you want to carry out business worldwide through your corporation, you will require authorization from the financial service commision of Panama to offer trust, bank or insurance service. You will have a smooth sail running a business in this country.