Are you ready to kickstart your new global venture but need to know where and how to get started? Have you ever considered going to Panama for business affairs? If not, you are missing out on a huge growth opportunity. Panama, located in South America, is a prime destination for aspiring business minds. It fosters a conducive business environment, attracting minimal taxes and regulations. Let’s drill down on how to secure company registration in Panama and get your business up and running.

What makes Panama a premier business avenue?

Located in South America, Panama is a global hotspot for international trading despite a smaller geographical footprint. The success of this nation lies in its unprecedented exporting ability. In 2016, Panama exported more than US$8.8 billion worth of commodities, with almost 24% of its revenue belonging to the US. Nations like Guatemala and Japan were also on the beneficiary list, registering 6.2% and 4.4% of revenue, respectively.

Chemicals like sulfonamides and oxygen compounds were among the highest exportable commodities, constituting almost 18% of trade. The second and third best commodities are cargo ships and packaged medication, accounting for 17% of the business.

The tourism sector is another crucial source of revenue for Panama- thanks to the endless verdant landscape and alluring sea view. The world-class commercial infrastructure of this nation attracts a lot of eyeballs, helping amplify the tourism revenue.

Non-resident Panama entities can work without commercial approval when handling offshore operations. Such approval is mandatory for native entities that operate and trade locally.

Benefits at a Glance for Doing Business in Panama

• Fast and seamless incorporation process, no scope of Red Tapism.
• There are no requirements to reveal shareholder’s information publicly
• Liberal environment supporting multiple currency transactions
• Minimal taxes leading to improved revenue
• Unmatched credit accessibility- the top 40 American banks exist here.
• No restriction on share transfer
• There is no cap on the nationality of the shareholder or the director

Simplified compliances, allowing companies to focus on core areas.

Type of business models available for Company registration in Panama

The Republic of Panama has four types of business models eligible for Company registration in Panama:

Civil Partnerships

A Civil Partnership refers to a business model that instills legal identity in the partnership-based entity. It is a widely used business structure among legal professionals.

Corporations

A Corporation is another famous structure regulated by Panamanian law. The company structure heavily relies on the shareholding threshold, allowing the owners to have a distinct legal identity.

Limited Liability Company

A Limited Liability Company, aka Panamanian SRL (Sociedad de Responsabilidad Limitada), denotes a legal structure as flexible as the partnership firm and as secure as the corporation. Notably, the shareholders in this business model are referred to as members.

Comandite Company

A Comandite Company falls somewhere between a company and a partnership-based entity, making it a hybrid model. It offers several benefits to owners seeking a versatile yet organized business structure.

Conditions for Securing Company Registration in Panama

• At least two shareholders, out of which one should be Panamanian.
• Appoint legal professionals and the board of directors. Secure their information credential without failing.
• Legal professionals should belong to Panamanian nationality.

Documents for obtaining Company registration in Panama

You must arrange the following paperwork before getting started with the process of company incorporation:

• Charter documents such as bylaws of the proposed company.
• Identity and address proof of the authorized person
• Details concerning the proposed staff
• Details concerning board members and shareholders
• Application form

Guide to Secure Company Registration in Panama

Following is the step-by-step guide elaborating the process of securing Company registration in Panama:

Step 1: Register the name

Name selection can be as complicated as starting a new venture. Think twice or even thrice before you finalize the company name. Ensure that the selected name is free from legal or other disputes. Once you have covered all the grounds, you can register the name with the authority concerned.

Step 2: Select the company structure

Successful name registration leads to the second step, which is a selection of the apt company structure. Opting for a suitable business model is essential because it will decide how much taxes you will pay, the number of compliance you will address, and what will be your management structure and capital requirements. Take time to drill down your options and consider every factor hindering your growth and managerial ability.

Step 3: Draft and sign bylaws

The bylaw refers to a company’s constitution and entails vital information concerning shareholders, board meetings, company details, record keeping, etc. Drafting and attesting such documents is crucial as it lays the ground for incorporation. Before you do that, make sure to inform your shareholders.

Also, consider drafting the Company's 'objetivo social,’ another charter document highlighting the company’s affairs.

Step 4: Secure mandatory approvals

The next step is securing mandatory approvals from different departments, each falling under various ministries. These approvals will make your entity officially recognizable in the country, ensuring zero legal hassles and tax disputes. Let’s see what kind of approval you require here and which department to approach.

• Secure the company's Public Deed by contacting the Public Notary against the company's bylaws.
• Register your entity with the Public Registry of Panama.
• Next, head to the General Office for Taxation to enroll your entity, followed by the District Municipality to notify your business affairs.
• Visit the Social Security Fund of Panama, working under the Ministry of Labour, to register your proposed staff.

Step 5: Open a Bank Account

Finally, you need to open a bank account in a designated bank. Here are the steps to accomplish the same.

• Team up with a local group.
• Elaborate and sanction your business requirements with the bank
• Share the required paperwork.

Standard documents for opening a bank account include an incorporation certificate, photos of authorized signatories, tenancy proof, staff details, shareholders' details, etc.

Choose Adviso and Stay Atop Business Establishment Requirments

There is a long list of compliances that one needs to handle when doing offshore business. Settling a venture in a country like Panama can be taxing, particularly for new entrepreneurs. If you represent the same league, we are here to assist you. Our expertise in helping clients secure company registration in Panama is second to none.

From handling regulatory affairs to supporting clients for incorporation, we offer a multitude of services that keep your business up and running no matter the conditions.

What makes Adviso stands out?

• Boast a robust liaison with premier institutions in Panama for hassle-free processing.
• Ensure zero client intervention when it comes to paperwork and application requirements.
• Transparent working, allowing clients to keep track of application progress.
• Fostering a team of subject matter experts that ensure seamless compliance adherence.
• Post-registration support so that you can keep doing what is essential.
• Separate teams for different concerned areas, such as compliance, post-registration, and registration.