The procedures to start an office in Panama are different based on the type of company that you open. If you want to set up a limited liability partnership or simply operate a limited liability company, there are many procedures that need to be done. An attorney is a must for any business that wants to conduct any kind of business transactions.
Panama is a South American nation bordered by the Caribbean Sea, the Atlantic Ocean and the Pacific Ocean. Once the necessary paperwork has been filed with the government of Panama, an official will review the documents and determine if the application is in line with local requirements. The business owner will then have to prepare for the examination. Most documents that would be required are forms that have to be submitted with the application package.
There are two options for examination in Panama: in-house and offshore. Both are legitimate methods of establishing a business, but in-house might be the best choice for small companies without a lot of capital to spend. In-house applications can be done through the local office of your choice. These applications are more time consuming and might require additional fees. On the other hand, most Panama lawyers offer the services of offshore legal professionals who work on an as-needed basis.
For companies that qualify for an in-house examination, a package containing all necessary documents is sent to the company. This package will contain the Panama Company Formation Certificate, a Panama Business Registration, a Panama Company Guide, and other related documents. The company will then be able to start conducting business immediately. However, before the paperwork has been completed, the company will need to submit a completed Application for Operating License. This application can only be done online.
For companies that cannot qualify for an in-house package, they can choose to go offshore. Companies that want to establish an offshore company will need to present them with a CPA Statement, Bank Account Statement, a Power of Attorney for the company, and other documents related to their business. They will also be required to pay administrative fees and taxes applicable in the country where they are filing their papers. However, the company does not need to pay taxes on the money it earns offshore. However, registering a company offshore can be difficult and expensive.
There are many reasons why companies from Panama prefer to conduct their business this way. Panama’s laws are much more favorable to foreigners, particularly to foreign businessmen. For instance, taxes imposed by the government are much lower than in the country where the company is registered. Furthermore, if a company files for bankruptcy in Panama, creditors do not have the right to seize its assets. Finally, many legal companies offer financial services such as document preparation, estate planning, and company formation.
A company that has registered in Panama may not be able to start trading or operate legally without a license. These licenses are granted by the Bank of Panama, which is supervised by the government. To obtain a license, you must be sure that your company has sufficient capital to meet its organizational requirements.