What Encourages Investment in Panama?
- Panama has become a global center for banking and professional services.
- Panama has a stable political situation that helps attract foreign investors.
- Panama is supported by a strong banking sector due to its openness to foreign banking institutions.
- Panama provides many tax benefits to international companies operating on its land.
- When someone does business in Panama, their income will not be taxable as long as it is from foreign sources.
- Panama has good infrastructure and is one of the largest free trade centers in the world.
Also read: A Simplified Definition of Commercial Law
Procedures for Establishing the Company in Panama
- Choosing a name for the company.
- Determining the type of company.
- Opening a bank account.
- Preparing the company’s articles of association list, which includes basic information such as:
- Information about the Board of Directors and shareholders.
- Company address and type.
- Procedures for keeping company’s records.
- The company’s commercial activities.
Also read: The Most Important Branches of Commercial Law
- Company registration, which includes:
- Obtaining the company’s public bond by submitting the company’s articles of association to public justice offices.
- When the investor obtains a public bond, they must register with the General Register in Panama.
- Registration with the General Tax Office.
- Registration with the municipality of the region and Ministry of Commerce.
- Company registration at the Ministry of Labor.
Also read: The Importance of Having a Commercial Lawyer Before Starting Your Investment
Types of Companies in Panama
- Public Partnership.
- Limited Partnership.
- Civil Partnership.
- One-person Company