Why Set Up Your Business in Panama?
Choosing a new country for setting your business is not an easy task. It is a difficult ordeal and a number of things need to be considered before you make the decision.
You have to keep in mind plenty of things before you choose your destination country— ranging from the political and economic environment to the cultural and societal norms. Keeping this in mind, there have been concerted efforts made by the government of Panama to attract more businesses by bringing into limelight the geographic advantage, the historical status and the political stability of the country. The result is that there are a number of companies that are setting up their businesses in Panama. The business friendly environment of Panama makes it attractive for all businesses planning to set up in a new country.
Here are the reasons why you should set up your business in Panama.
Regardless of the line of business, there are a number of incentives that are offered to the businesses that establish them in Panama. There are specialized areas for all kinds of businesses and the government offers full support to them.
Establishing a Legal Entity
It is relatively easy and quick to establish a legal business entity in Panama as compared to other countries in the world. Whether you want to establish a local limited liability company, a corporation or want to open branches of a foreign company, doing all of these is easy in Panama. All you have to do is execute the articles of incorporation and then file them with the registry and you are done with the legal process that takes no more than a week.
Corporate and Personal Tax Benefits
Panama is a tax haven when it comes to corporate and personal income tax. For corporations, only the income that is earned from sources in Panama is subjected to taxation. The rate of corporate income tax is 25%. As for the personal income tax, it is between 15-25% but depends on the income level. The best thing about personal income tax in Panama is that the employees who are employed in a company that holds a multinational headquarters license are exempt from personal income tax.
Immigration is Easy
Immigrating to Panama is very easy. There are some simple and not time taking procedures to follow and the executives and their families can be brought to Panama without much of a hassle.
Good Business Environment
The location of Panama is ideal as it provides a connection between South and Central America. Therefore, it has taken the position of an international financial and commercial centre. Panama is also politically stable and open and free elections are held regularly. The country is also very safe and security is not an issue here like in other countries these days.
If you are making a list of probable countries that you can set your business in, you should definitely add Panama to it. Setting up a business and running it without much hassle is something that other countries might not offer other than Panama.