Why Creating a Corporation in Panama is the Best Decision for Your Business

Forming a corporation in Panama (S.A.) not only ensures flexibility for shareholders but also provides unique tax and operational benefits that appeal to both local and foreign entrepreneurs.

1. World-Class Tax Benefits

• International tax exemptions: Income from foreign sources is tax-exempt, significantly reducing the tax burden and serving as a cost-saving tool for international businesses.
• Competitive tax policies: Panama does not impose taxes on dividends derived from operations outside the country.

2. Business Confidentiality

• Guaranteed privacy: Shareholders' information is not publicly disclosed, protecting your rights as an investor.
• Secure management: Panama enforces strict laws to ensure discretion in business activities.

3. Easy Access to International Markets

• Panama's strategic connectivity makes it a natural gateway to Latin America and other global markets.
• Being part of a Panamanian corporation enhances credibility with international partners by offering a reliable and transparent legal framework.

In Panama, starting a corporation is a quick and efficient process designed to accommodate international investors without requiring constant physical presence in the country. Here are some highlights:

1. No Nationality Restrictions

• Directors and shareholders: You can form a company with directors and shareholders of any nationality.
• No residency requirement: There's no need to relocate to Panama to manage your business effectively.

2. Streamlined Process

• Minimal documentation: With just an incorporation charter and a minimal annual fee, you can swiftly initiate registration.
• Digital platforms: Many processes, such as public registration and obtaining a Tax ID (RUC), can be completed online.

One of the main reasons entrepreneurs choose Panama is its legal stability, which ensures the protection of corporate and property rights.

1. Protection of Property Rights

• Panama's clear legal framework provides security to investors, safeguarding assets and rights in case of disputes.

2. Use of the US Dollar as Official Currency

• By using the US Dollar, Panama eliminates currency fluctuation risks, offering a key advantage to international businesses.

To incorporate a corporation in Panama, the following basic requirements must be met:

• Minimum share capital: The standard amount is $10,000, but there is no obligation to pay it upfront.
• Directors and shareholders: A minimum of three directors and one shareholder is required, and they can be individuals or legal entities.
• Company name: It must be unique and must end with identifiers such as 'S.A.' to denote its type.
• Public registration: Incorporation is formalized by filing the articles of incorporation with the Public Registry of Panama.
• Tax ID (RUC): This number is mandatory to fulfill local tax obligations.

Thanks to professional assistance, these procedures are typically resolved without complications.

Establishing a public limited company in Panama opens up a world of possibilities for entrepreneurs looking for a favorable and reliable environment. From unique tax benefits to economic stability and global access, Panama is positioned as a leader among international corporate destinations.

If you need help to formalize your company, manage requirements or take advantage of the benefits of this strategic environment, Limitless Legal can provide you with reliable and personalized advice.