Know More About the Top 5 Reasons to Incorporate a Company in Panama
Panama is a small country with a little population of about 4 million in Central America and is increasingly growing its popularity due to tax benefits provided by the government along with the presence of variety of industries present in this region, hence you must incorporate a company in Panama. There are many benefits of doing a business in this small country named Panama as the commercial jurisdiction is preferable thus providing many commercial business activities. Here are 4 top 5 reasons to incorporate a company in Panama.
Panama is well connected and is links to both North America and South America and thus it is a perfect place to make regional trade. Panama is connected to two big oceans, Pacific and Atlantic Ocean thus making it accessible to many destinations around the world. The Panama made a total export business worth of USD 8.8 million with USA, Ecuador, Venezuela, Japan, Guatemala which included products such as chemical products, medications, cargo ships
The Panama Canal which the trading spot of Panama is the largest infrastructure which is developed in Latin America.
Development of different Industries
The economy of Panama is growing due to the varied industries which have emerged here. The country has been ranked 33rd country for investment for clean energy. Panama has been titled for Enabling framework for its easier set up process of energy projects along with reduced costs and pricing. However, the company ranks low for greenhouse gas management thus there is much scope for foreigners to invest in green house projects as there is huge potential for the country to develop infrastructure.
Competitive Tax Rates
Panama has an attractive tax system which is one of the most important reasons why investors are investing in Panama. The income generated in Panama is only taxable while the other offshore business accounts have an income which is tax free. They have a low Vat of around 7% and there is a tax cut off for the Panama residents too.
Easy to incorporate a business
Setting up a company in Panama is easier when compared to the complicated business set up in other countries of Latin America. The four basic steps involved in incorporating a business in Panama are:
- Define the name of the company and giving it a right structure
- Drafting and signing the bylaws of the company
- Registering the company with the appropriate local authorities
- Opening a bank account
Setting up a company in Panama offers high level of privacy and anonymity with the bank account along with protection.
Local Population which is bilingual
Incorporating a company in a new country requires good communication as communication can be a barrier along with varied cultural difference. The population of Panama can speak both Spanish and English, thus it is easier for the foreigners to communicate about the registration process, to understand the employees concern and to understand the minutes of meeting with clients here. Most of the professional employees are fluent with English, thus having an educated workforce is an added advantage for doing business here. The bilingual population of Panama has been developed as the government has introduced and increased the level of education in English across the region.
Being a small country with a very little population, Panama shouldn’t be underestimated for its trading and business opportunities. The popularity and the economy of the country is fast growing which must be considered for making a business investment.