Panama offshore company formation

Offshore is a term that can be applied to offshore banks, companies and investments, and refers to any location beyond national boundaries, whether on land or water. In terms of more commercial activities, offshoring can often be referred to as outsourcing.
An offshore company is one that is headquartered abroad, i.e. located in a country other than the investor’s or client’s home country.
A company may have several reasons for moving offshore:

  • To move to a country with more lax regulation and thus be able to pay less tax.
  • To be able to pay lower wages to employees.
  • It can also be for illicit purposes, such as tax evasion or money laundering.

There are many countries with offshore financial centers (OFC), in fact, there are some that are very popular, such as Switzerland, Belize, the Cayman Islands, etc…
As everything in this world, there are two points of view about offshoring. Those who are against it argue that it is a form of tax evasion, and those who are in favor argue that offshore companies help the flow of capital.


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What are its features?

The main characteristics of offshore companies are:

  • The companies establish their headquarters abroad or tax havens.
  • They do not carry out any of their economic activities in the country where they were incorporated.
  • They pay much less taxes.
  • The incorporation of this type of company is very simple.
  • The cost of registering the company is much lower.
  • They have no auditing expenses since they have no obligation to present annual accounts.
  • No obligation to hold shareholders’ meetings.

What are its advantages?

  • Costs are very low since they do not have to carry out accounting obligations, nor
  • own workers.
  • They have very few compliance reporting requirements.
  • They are exempt from taxation on profits earned in the foreign country.
  • Strict confidentiality
  • One person can perform all functions.
  • Freedom of investment