What do all entrepreneurs dream about? A stable jurisdiction that offers impressive business opportunities, zero taxation, complete anonymity, and an asset protection structure that is reliable as clockwork. You can add global markets and perfectly functioning banks – just to finish this picture.
The bad news is that we have no power to make this dream come true. However, there is good news: our experts can offer something that will be as close to this dream as possible in the present-day circumstances. The country that will meet all expectations is Panama, and we suggest incorporating a company here. A corporate account set up in Belize, a popular offshore jurisdiction in the Caribbean, will complete this powerful combo and help you diversify risks. Sounds interesting?
Advantages of Opening a Panamanian Company
Panama is a point where North America, Asia, and South America meet, so it has a really advantageous geographical location. Another valuable asset is, of course, the Panama Canal used by many trading companies to reduce maritime distance and logistical costs. Panama can rightly be considered one of the world’s important business centers as it boasts the highest per capita income in Central America.
Panama is one of the most appealing offshore zones in Latin America. It has established a really well-thought-out legal framework with conservative regulations as to confidentiality and non-disclosure of trade secrets relating to offshore companies, corporations, and foundations – and efforts are taken to ensure their strict observance.
Investors willingly start companies and foundations in Panama seeking to diversify assets and reduce the tax burden. Panamanian authorities propose tax incentives to foreign businesses, investors, and innovation start-ups. The territorial principle of taxation adopted in the country means that an offshore company is not liable to the Panamanian tax authorities if it generates 100% of its income outside Panama. Last but not least, there are no currency restrictions in this business-friendly Central American jurisdiction.
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Legal Aspects of a Panamanian Company Opening
The procedure of Panamanian company registration is set out in Act No. 32 of February 26, 1927. The most popular types of entities are an International Business Company (IBC) and a Limited Liability Company (Sociedad Anonima). They are typically incorporated for the following purposes:
- conducting trading and commercial activities
- settling the company’s relationship with trusts or foundations
- creation of an offshore bank account or an investment account
- registration of real estate or intellectual property as the company’s assets
In some cases, the legal entity is used to conduct private confidential business transactions.
A Panama-based company is not required to have a mandatory authorized capital. As regards the staff, be sure to appoint three directors, a secretary, and a treasurer prior to incorporating the company. There are no limitations as to their places of residence, citizenship, or nationality. The company beneficiary is not required to be its director: in most cases, business owners use the services of a nominee director who has no influence on the company’s day-to-day operations or strategic decisions.
The beneficiaries and shareholders of a Panama company with an account in a Belize bank have no obligation to be registered in the Public Registry of Panama and thus can remain anonymous and unknown to the general public. A Panamanian entity with an account in Belize is represented by a company agent (a local (resident) lawyer/a Panamanian law firm). The company’s agent is responsible for servicing the company during the year, and he is also in charge of timely annual tax (company deductible) payments. If payment is not made on time, a fine of USD 50 is charged. Mind that the company’s attorney shall not be liable for the actions of the appointed directors of your company and other personnel.
Advantages of Opening an Account with a Belize Bank
Offshore Pro Group experts propose to combine Panamanian company incorporation with opening an offshore account with a Belize bank. A business offshore account in this Caribbean jurisdiction is well-suited for successful company operation as it perfectly meets the needs of daily operations and business development: assets will be well-protected, and tax expenses will be optimized.
Yet another benefit of opening an offshore account in Belize is the tax incentives you may take advantage of. Last but not least, offshore banks in Belize (in contrast to state-owned ones) provide multi-currency accounts and conduct international financial transactions really promptly.
The Belize Merchant Marine Registry (IMMARBE), engaged in the international registration of merchant and fishing vessels and pleasure yachts under the flag of Belize is highly appreciated. Vessels registered under the flag of Belize enjoy all the privileges of an international convention and benefit financially from the payment of income tax imposed by foreign ports for chartering.
Procedure for Offshore Panamanian Company Incorporation and Opening a Digital Corporate Account with a Belize Bank
Just a few steps under the guidance of our experts will be required to start a company and set up an account in Belize:
- For a start, please reach us by e-mail info@qwealthreport.com to discuss your situation and particular needs as the process of incorporating a company and opening a Belize bank account may have to be modified in your case.
- Next, pay a commission for expert assistance in forming a Panama company and opening a Belize bank account. The amount we charge is 5968 USD, and you can pay by card, bank transaction, or Pay Pal.
- Once we receive proof of payment, the main process (preparing documentation for the Panama company formation and the Belize account opening) will begin.
To form a Panamanian company, individuals will have to file the documents below:
- a completed application form with particulars of the preferred company name, nature of its business, particulars of the founding company directors and shareholders (citizenship, country of residence, address, profession)
- a copy of the international passport (with notarial certification) or other acceptable Identification Document (pages with a photo and signature) with the apostille stamp in compliance with the bank requirements (required for individuals involved in the formation of a company with a Belize account)
Note: It happens sometimes that a notary public refuses to certify a copy of your passport. If it happens, order a translation into English from a sworn translator, stitch it with a copy of the original (page with a photo, signature), and then submit it for notarization and apostilling.
- proof of residential address (utility bills) – provide a copy of a utility bill certified by a notary public or a bank/credit card statement to prove the residential address (applies to individuals involved in the formation of a company with an account in Belize)
Note: this document should be 2 months old at the most by the time you file the set of documents for registration. English translation and certification by a notary public are mandatory. Make sure it contains a clearly indicated place of residence.
- two reference letters – one from a bank with a valid account, and the other one from a specialist (bookkeeper/notary public). A translation into English certified by a notary is required.
- Upon completion of the company opening procedure, the set of original documentation is sent to the prospective owner by courier mail.
- Next, a set of copies of the original Panama company documents certified by a notary is sent to open a Belize bank account. In addition, personal documents of all company beneficiaries and directors with the right of signature will have to be filed.
Are you the only signatory of the application form filled out to open a Belize account and the only beneficiary of the Panama company with a Belize account? In this case, only one set of documents per individual will be filed.
Ready to launch the process of forming an offshore Panamanian company and opening a Belize corporate account? We hope you are. Please write to us at info@qwealthreport.com to get your business going in no time.
