Panama Offshore Company- A Suitable Offshore Business Organizational Solution

Panama is one of the many destinations for those who are looking for offshore incorporations. A Panama company, in fact, can be a suitable business option for you if you are planning to go global in your business.

In a Panama company, it is possible to have nominee directors and shareholders. A Panama company that does not perform any business inside Panama is completely free from local taxes. This provides tax exemptions for the non resident Panama offshore company. However, for availing itself of this advantage the company has to be well established, structured and properly managed.

Although a business may be 100% free from local taxes, it has to pay an annual franchisee tax. This also makes Panama a very interesting place for business opportunity seekers. Panama's jurisdiction is quite favorable for those corporations seeking stable economic and political environment. The laws in Panama follow the Spanish civil code. However, the corporate laws have been derived from Delaware's corporation law.

Hence a corporation who has set up business in Delaware will have a clear idea of these laws. They will also clearly know the basis on which the Panama offshore companies are established and structured. It is also important to know that the business languages are Spanish and English. Hence, it is mandatory to prepare and provide all corporate documents in both the languages.

The process of documentation should be clear to all organizations seeking offshore incorporations. However, there may be delays due to translation of key documents and can slow down the incorporation process.

An offshore company in Panama must have a minimum of one shareholder and his/her name must appear in public records. These companies should have a minimum of one director and his/her names must appear in the public records as well. The director has to appoint a president with secretary and treasurer. However, the director can fill in all of the roles. As noted earlier it is possible to have both nominee directors and shareholders in Panama.

The setting up of an offshore facility in Panama can be done within 48 hours. This set up is usually done by offshore company formation service providers. For this service, a basic fee of around US$750 is charged. The service charges for nominee start from US$1000 in a year.

The majority of the service providers also provide bank accounts. Correspondence addresses and trust services along with remote office and e-mailing facilities are also provided to all Panama offshore company and come as a part of the whole offshore business package. All these facilities and the local jurisdictions makes it quite favorable for large organizations to set up their offshore facilities in Panama.