Panama has long been an attractive country for those who want to start a business abroad. Its advantageous geographical location, favorable laws for entrepreneurs, and flexible tax system make this country a popular choice. The registration of a company here has its own peculiarities, which should be taken into account in advance to avoid unnecessary difficulties.
Why choose Panama to register a company
Panama attracts entrepreneurs from all over the world due to its economic and legal advantages. There are no taxes on income earned outside the country, which is especially beneficial for international business. In addition, the company registration process is quite simple and fast.
At the same time, despite the obvious advantages, you need to remember to strictly comply with all requirements. Panama company registration can be an excellent solution for those who are looking for a jurisdiction with loyal legislation, but it is important to understand all the details of the process in advance.
Basic steps and requirements for company registration
In order to open a company in Panama, you need to follow several mandatory steps. It is important to take into account both the formal procedures and the requirements for doing business in the country.
- Choosing the type of company. The most common form is a corporation (Sociedad Anónima or S.A.). This type of company allows foreigners to conduct business without restrictions, as well as maintain the confidentiality of the owners.
- Choosing a company name. The name must be unique and not match the already registered companies. It can be in any language, but a phrase indicating the type of company should be added, for example, “S.A.”.
- Appointment of directors and shareholders. Panama requires at least three directors, and they can be citizens of any country. The shareholders may also be foreigners. It is important to know that their data is not necessarily listed in public registers, which ensures confidentiality.
- The authorized capital. Companies usually specify a standard capital of 10,000 US dollars. However, the actual deposit of this amount is not required — it is just a condition for registration.
- Opening a bank account. Opening an account with a Panamanian bank is an important step, but it may take some time, as banks carefully check the documents. Constituent documents, copies of passports, and proof of income sources will be required.
- Registration of the company’s articles of association. All constituent documents must be registered in the Panamanian Register of
- Companies. This process usually takes about a week.
- Assignment of a legal address. The company must have a registered office in Panama. Most often, the legal address is provided by companies that help with registration.
Features of doing business in Panama
After registering a company, there are several important points to consider related to running a business. These requirements are mandatory to comply with and affect future work.
- Reporting. Panama does not require the mandatory filing of financial statements if the company operates outside the country.
- However, it is recommended to keep internal documentation in order to be prepared for possible inspections.
- Meetings of shareholders. The law requires an annual meeting of shareholders. It can take place in any country, not just in Panama.
- The minutes of the meeting should be kept in corporate archives.
- Payment of annual fees. Companies are required to pay a fixed government fee annually to maintain their registration. If the fee is not paid on time, the company may be removed from the registry.
Panama company registration is a process that requires attention to detail. However, due to the simplicity of the legislation and the support of local lawyers, it is possible to register a company without significant difficulties.
Registering a company in Panama is a convenient way to start an international business, which will not only save you money, but also ensure a high degree of confidentiality. The main thing is to comply with all legal requirements and seek timely advice from specialists.
