International Businesses Operating from Panama
Panama has been firmly entrenched as one of the leading business destinations in America. Its strategic position makes it one of the world's most connected countries all around the world.
In the multinational business sector, it is always a hot topic between investors: Is Panama a good place for business? The answer is definitely yes! Panama has emerged as an excellent marine and air-transport hub. Panama's worldwide strategic business position is increasing due to commercial liberalization and privatization. Its growing involvement in free trade agreements makes it a global business hub.
As compared to neighboring nations, Panama's dollar-based economy has minimal inflation and no foreign currency risk. Panama has a stable and democratic government that aggressively promotes international investment.
It has transformed itself from a significant marine trade center to a leading international banking and professional services hub. That’s the reason its robust economy and world-class infrastructure have attracted many local and international investors.
Hence, setting up a business in Panama offers numerous benefits, including a stable, democratically elected government eager to welcome international investors. In addition, there is a competent local labor force and a low crime rate. It has all of the elements required for the development of a successful company.
In this article, we will discuss why Panama is a good place for doing business, and later, we will talk about the list of multinational companies registered in Panama.
The main reason why are companies based in Panama is its tax system. The tax system is straightforward for business people in Panama. Panama has the affordability of just 7% of low VAT/Sales Tax on goods or services and only 25% on net income after expenses. Taxes on dividends vary between 5 and 10%. Panama has a territorial tax system, which means that if your income is generated within Panama, you have to pay tax.
Similarly, Panama’s non-Panama incomes are tax-free for Panama’s companies, residents, and citizens. For Panamanian residents, income tax is likewise relatively low. Panama also has numerous duty-free zones, or special economic zones, which let companies import, manufacture, assemble service, and export duty-free goods or services and typically have lowered and meager income taxation rates.
Many people consider Panama to be the safest place because it is socio-economically and politically stable, the country's specific agreements for protection in case of war or an attack on Panama, and the significance of the Panama Canal as a global shipping route worldwide business. Panama is regarded as Central America's safest nation, and people across the globe are visited often. Thousands of foreigners permanently live in Panama from Europe, North America, South America, and Asia.
There are no hurricanes, tornadoes, and tidal waves in Panama, whereas this country may sometimes suffer from small earthquakes.
There are direct flight connections to and from more than 100 international locations across the globe from Panama City's Tocumen International Airport, which is served by several international airlines that fly into and out of Panama. Panama's international airports provide direct flight destinations to Canada, the United States, Latin America, and Europe.
Setting up a business in Panama is very simple. It takes just 2-5 business days to establish a business in Panama. Once the business has been established, an operating license will be obtained online, and a modest installation charge/tax will be paid. How much does it cost to register a company in Panama? You may also set up a company as the only owner in your name, and the company operations allowance, in this case, is just 15$. Municipal taxes are relatively cheap in general, depending on your organization and the town in which you work.
Panama's banks are robust and have highly conservative lending policies, making them very stable in financial uncertainty. In Panama, the banks are closely supervised by a very effective banking regulatory authority.
In 1903, Panama became the first country that adopted the US dollar, along with Panama's currency, named "Balboa." The Balboa is linked to the value of the US Dollar. Both operate in Panama as circulating currencies, even though Balboa contains only coins and no notes. All local banking transactions are generally quoted in Balboas, while foreign transactions are priced in U.S. dollars.
While Spanish is the primary language in Panama, English is widely spoken due to the large English-speaking foreign community in the country as well as the fact that the United States was heavily involved in the construction and maintenance of the Panama Canal from 1904 to the end of 1999, when the United States turned over the Canal to the Panamanian government and closed all of its numerous military bases in the country.
If you are looking for what American companies are in Panama? Here, we have listed some of the notable US companies in Panama, which include;
Among the American companies in Panama, Banco Latinoamericano de Comercio Exterior is top-rated. Banco Latinoamericano de Comercio Exterior, S.A. (English: Foreign Trade Bank of Latin America, known as Bladex, its commercial trademark) is a multinational bank. Founded in 1977 as Banco Latinoamericano de Exportaciones, S.A. and renamed in June 2009, the company is headquartered in Panama City and finances Latin America and the Caribbean foreign trade.
It is a regional airline headquartered at Albrook "Marcos A. Gelabert" International Airport in Panama City? It is presently the country's second-largest airline, behind only Copa Airlines in terms of passenger traffic. Albrook International Airport serves as the carrier's hub, and it provides scheduled and charter passenger flights to more than Thirty-one destinations.
VeePN is a VPN company designed to simplify and improve your internet browsing experience. It is the quickest and most convenient VPN service available. More than five million consumers from 200 countries are trusting VeePN service. It is a Panama-based company that does not have required data retention regulations and does not join in the Five Eyes or Fourteen Eyes coalitions, making it an ideal location.
Using VPN features, you may browse the internet anonymously and get access to restricted material that is not legal or not allowed in your region without having to fear your data being compromised.
VeePN directs all of a user's internet traffic via a distant server managed by the provider, masking the user's IP address and encrypting all incoming and outgoing data. In addition to general-purpose VPN servers, the service provides servers for various specialized applications, such as peer-to-peer file sharing, double encryption, IP checker, and access to the Tor anonymity network.
Balboa Bank & Trust is a financial intermediary that started operating in March 2010 when Strategic Investors Group Inc. acquired Stanford Bank (Panama) S.A. The commercial body is licensed under a general banking license. It offers credit grants, payment guarantees, credit cards, and loans to the corporate and individual sectors and other foreign currency activities.
A group of businessmen with a longstanding and excellent track record in the economic sector established the bank in 2002.
Balboa Bank & Trust was formed based on a robust financial structure and a deep commitment to service and innovation. It is staffed by a team of professionals with extensive experience in the banking industry dedicated to providing their clients with the best solutions tailored to their individual, family, and corporate goals while adhering to the strictest standards of transparency and high efficiency.
DHL Aero Expreso is an air freight company headquartered in Panama City. The airline was established in 1996 and conducted regular shipments between its base and its destinations in North, Central, and South America at Tocumen International Airport.
As of September 2021, it has 410 employees and is jointly owned by Felix Picardi (51%) and DHL Express (49%).
