Panama has been providing businesses the opportunity to reduce their taxes for almost a hundred years. It is one of the most popular and well-known tax havens in the world, and for good reason. The Panamanian government attracts foreign investment with the help of very lenient tax laws. This has led to more than 400,000 businesses registering in this small central American country. These laws make it easy for companies to operate in the country. Panama levies almost no tax on companies that do business outside of the country’s jurisdiction, and provides some of the best confidentiality protection in the world.
As far as taxes go, offshore businesses and their owners pay no corporate tax, income tax, capital gains tax, inheritance tax, estate taxes, gift taxes, withholding taxes, or even local taxes. The country’s financial privacy laws are of the strictest in the world, and violations of these laws carry heavy fines or penalties. Panama is also very attractive due to the lenient operating laws. There are no reporting, nor book keeping requirements for foreign companies. Directors and shareholders can be from anywhere in the world, and board meetings can be held in any country.
It’s also really easy to register an offshore company in Panama. Here’s a look:
One of the great things about choosing Panama as a tax haven is that you don’t have to be in Panama to register a company. You also don't need a commercial license to do business outside of the country either. This makes it really easy to register an offshore company in Panama.
To register a foreign company, the law requires certain information:
Your company needs a name, and you have to provide three options that adhere to certain rules. The names must obviously be unique and not be the same as that of an existing company. Company names may not include the words Corp., S.A., or Inc., and it may not suggest that the company is involved in financial services such as banking, insurance, or trusts.
The standard amount of initial capital is usually around US$ 10,000, but it’s not a requirement to register a company. However, there is a small fee if the initial capital is less than US$ 10,000.
Personal details of directors
While the names of the directors don’t have to be registered publicly, their names and addresses of directors should be provided upon registration.
If the company is not situated in Panama, an address needs to be provided.
Should the company’s life not be in perpetuity, the length of the company’s life must be stated during registration.
Fees & Penalties
Having an international business company registered in Panama requires a small annual fee of a mere US$ 150. This fee should be paid within the first three months of registration, and then annually. If this fee is not paid within these three months, a US$ 30 penalty will be levied. Should the annual payments not be made, a US$ 50 will be applied, increasing to US$ 300 if payment is skipped more than once. If a company neglects to pay these fees for ten periods, the company will be deemed no longer in operation, and will be scrapped from the public registry.
The next steps to get there
Registering a company is really easy. There are very few requirements, but the legalities are still complicated and its easy to trip up and fall foul of the law if you don’t know exactly what you’re doing. Because of this, businesses are advised to seek the help of specialists who know Panama’s tax laws inside out. The WealthSafe team are experts at foreign tax laws, especially those of Panama. They will not only help you with your Panama offshore company registration, they will also ensure everything is 100% legal and ATO compliant. The team will also provide guidance in terms of the best offshore tax options for your particular needs.
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After a thorough analysis of your data and unique circumstances we advise you of all oppotunities. We guide you towards the best path and take control of implementation. Through every stage, we ensure full tax compliance and ongoing support.
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Financially modelling your situation. We present your options and outline the possible tax savings.
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We outline the process, costs and tax savings, and what you need to do from your side.
We fully implement your tax plan to ensure you meet all local and international legal requirements.
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Our service continues after we've implemented everything for you. We provide ongoing training to update you on changes as well as providing options to work with us on an ongoing basis.
Brilliant service!! Could not have asked for a better start to getting my business structure. This world is still completely new to me and I am very impressed with all the resources Warren and the entire team at Wealth Safe have provided to help me understand trusts
Living overseas, with no structures or assets in Australia anymore, it simply didn't make sense to keep paying into their tax system. Thanks to Warren and his team, they guided me through the process of setting up stable business structures, and making sure all the lawyers agreements and professional advise was documented. This ensured I met the obligations of the ATO and was 100% legally compliant with my obligations. I researched my options, and felt secure that WealthSafe took all precautions to ensure I was doing the right thing, and benefitting financially at the same time
After getting so much conflicting advice from other sources, we were completely confused. Being global business owners, we needed both Australian and international advice, so we reached out to War ren to help us understand exactly how we could structure our businesses to ensure we were well protected. It was vital to us that our future growth and decisions were taken into account. Not only did Warren give us the highest quality advice, and go above and beyond in ensuring we understood the full spectrum of what we were putting in place, but he has always been available for follow up questions, is always happy to get us on the phone for clarification, and he has shared the expertise in his team with us. At first, we have to be honest, we were really concerned about spending money on a consultation. The outcome is although not cheap, it is the best money we have ever spent. We can see significant savings, know we are structured well, have a fully dedicated and professional team behind us and have expert advice available when we need it. We can’t recommend Warren and the Wealth Safe team enough. Thank you
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He is very professional, knowledgeable and creative with his tax planning strategies, and very attentive in answering your questions and working with you to find the best set up for your individual situation. I feel confident working with him and his team, and his level of expertise is outstanding. I wouldn't trust any other company, and would highly recommend Warren Black and Wealth Safe to protect your assets
Although I thought the result I had figured out with my accountant were the most tax effective way I could setup myself up. I was in a position where I would have to pay 31k in tax. Warren found something in how I was setup, which turned my situation around to getting $15k returned to me. It's a $46k turn around.
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I'm in the mining industry and run a small trading business. I had a tricky situation I had to get out of. I had default on my credit files. I got Warren on the job, he loves that sort of challenge. He didn't even charge me full price, he was excited at the challenge of helping me out. He succeeded and got rid of my default! I get Warren to do all my work now. I would recommend him to anyone
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I run a small business. I was concerned about safeguarding my assets, myself and my family, and the amount of tax I was paying, but I also wanted to be legal and not get into trouble. Warren was able to provide me with a structure that protected me and my family and my assets and also helped to significantly and legally reduce the tax that I had to pay. Sure I had to pay and they aren’t the cheapest nor the most expensive, however it was well worth the fees paid. I certainly feel more comfortable and secure now
They were able to walk me through the whole process, even a tax dummy like myself.... I was very very impressed with the level of service. It was really end to end. They were always there to answer questions, help me complete paperwork and connected me with all the right people. I can't recommend Warren and Wealthsafe highly enough Full Review Here
Virna, Warren and the Wealth safe team have provided us with a professional and efficient experience helping us to identify and create a customised financial structure to suit our needs. They clearly have a great deal of knowledge regarding taxation in Australia. Also Warren's seminars have been of great help. We absolutely would recommend their services and are forever grateful for help and advise provided
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I worked with Warren Black to open a Hong Kong corporation during the summer of 2018. Warren came highly recommended from my business contacts, who said that he was honest, trustworthy, and very knowledgable. I have to agree. My experience working with Warren was very good. Warren was extremely attentive to my questions, replying with solid answers in less than a day. He also took the time to explain options and rules in detail. When faced with some unique challenges that most businesses don't face, Warren was quick to roll up his sleeves, take action, and even put me in touch with his team so the process could move forward rapidly. This was above and beyond what I expected. To top it off, I found him very personable and really a pleasure to work with. If anyone is looking at a business entity in Hong Kong or Malta, I highly recommend Warren Black.
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