Registering Foreign Companies in Panama With the Help of ISOG Lawyer.
A possible way to set up a business in Panama is to register a branch of your foreign companies. Opening a branch has many advantages and disadvantages.
The advantages of registering foreign companies are:
- If you have a company incorporated in another country that has developed a brand and image for the product or service marketed, the best thing to do is to register your foreign company in Panama as a local branch. This will help you preserve your company’s brand and image.
- There are less obligations to present accounts than with corporations
- A branch is ideal for low cost projects. However, it is not the ideal choice for substantial projects because the parent company and branch offices activities are not differentiated, the parent company is fully liable for the branches liabilities. However, in case of government’s bidding projects, this could be an advantage since there would be less risks involved for the government and therefore the company would more easily be accepted as a supplier.
The disadvantages of registering a branch of foreign companies are:
- The parent company is fully liable for the liabilities of the branch
- From a tax point of view, branches are permanent establishments of non-resident companies and a Panama branch is not a separate legal company from its parent.
- The branches representatives may be held jointly and severally liable for tax debts
- The branches obligations are the same as the parent, including filing VAT returns, employees returns and corporation tax returns, so there are few savings in administering a branch
- Banks and clients may prefer dealing with a Panama company rather than a foreign branch
Requirements to Register Foreign Companies in Panama:
- The branch must have the same name as the parent company.
- The type of company that should be kept in Panama: if your company is a share (anonymous) company it will be registered as a Share Company in Panama; if it is a Limited Company it will be registered as a limited company (SRL).
- It is necessary to submit a copy of the incorporation act and a certificate of the registry of companies in the country of origin. These documents should carry an International Apostille.
Once you provide this information, ISOG lawyers will prepare an incorporation act aimed at establishing a branch of your foreign company in Panama.
ISOG lawyers are expert in registering foreign companies in Panama.