A virtual office is a service useful to those companies that need to establish a presence on the Panamanian market but do not need to rent or purchase an office space.
With a virtual office in Panama, your business will benefit from the presence of a high-profile office at a fraction of the cost of a traditional office. The package will include access to almost all of the regular office amenities and both the company owners and the employees will have the advantage of having a flexible presence in the office (meaning that they do not need to be present at the office at all times).
The virtual office is a preferred method for many foreign investors who open a company in Panama
. Our team has a vast experience in company formation services and virtual office services and can assist investors who wish to work via this type of office. Below, we provide more information about the advantages of the virtual office.
Please do not hesitate to reach out to our Panama incorporation agents for more details.
The advantages of the virtual office
The virtual office is advantageous primarily in terms of general costs. The packages can be personalized and company owners will receive a quota according to the types of services they need to include.
The Virtual Office package provided by CompanyIncorporationPanama.com contains:
Prestigious business address: at an office located in a Panama office building, for a credible and risk-free base for corresponding with clients;
Registered office: the address will also function as the registered office, mandatory in order to open a company in Panama;
Mail collection as well as forwarding: a team collects the main, signs for the packages and sends the items to you according to the existing instructions;
Incoming and outgoing faxes: the company will use our local fax number; we'll collect and send faxes to you, wherever you are;
A local telephone number: the company will be able to lost a local telephone number in Panama City, Panama, for a facile communication with local clients or partners;
Voice mailbox: all of your voice messages received via the local phone number will be forwarded to you by email, as requested.
Additional services offered:
- Dedicated fax service: the difference is that in this case you will have a private and dedicated number;
- Call redirecting: a different service that allows instant call redirection to your primary number;
- Collection of bank statements: one of our agents will collect the bank statements on your behalf and forward them as needed.
- Extra usage of the meeting room: when required, you will gain access to the meeting room space and/or additional office space.
Many virtual office packages will include options for a private office, a dedicated desk that may be reserved as needed, or non-reservation based access to a desk within the open floor plan.
When using a virtual office it is advisable to check the reception hours. Access to the office itself will be limited to these hours in most cases, however, for special membership plans, the hours may differ. This may be needed for offshore companies who engage in international trading and need to work with clients or business partners who operate in a different time zone.
The standard packages will often include the basic amenities needed by most businesses so that they may carry out their offshore activities in Panama. The membership fees vary and it is advisable to request a quote beforehand.
The extra amenities can also include relaxation zones, a kitchen, various seating options, and access to free items such as coffee or tea. Catering services can also be available on demand.
Virtual office packages are designed to suit various business needs and can be based on a daily, weekly, monthly, or yearly subscription, in most cases. Many companies that offer these services strive to provide a comfortable and business-friendly space that is fully equipped and will also offer a welcoming setting for business networking. If you are interested in these services you can reach out to our Panama company formation agents for information on office prices.
Virtual office usage in Panama
Is the virtual office suited to your business needs? If the list presented above includes the main types of services that are required in order to run your offshore company in Panama, then the virtual office may be more suitable compared to renting or purchasing a property that will be used for the same purpose.
Having a local address in Panama is mandatory for incorporation purposes and, as previously stated, the address at which the virtual office is located will be used as the registered address. In other words, the address of the office building in Panama will be included in the incorporation papers as well as be used for correspondence or mailing purposes. This is an advantage as these offices are located in office buildings in dedicates business centers throughout Panama City. The city itself is a modern one that includes both the historic center and the business areas where many offshore companies are based.
Virtual office subscriptions or extra services can be booked online in many cases, making it easy to reserve extra office space or meeting room space (with additional features such as equipment for video conferencing as needed). When choosing the virtual office package features is it recommended to choose a form that will suit your most basic needs, as the extra amenities can be booked in advance only as needed. This is a further manner in which business costs can be reduced to a bare minimum, as the company will only pay for the services it uses most of the time and not for the extra ones that are only used on occasion.
Do you still need more information on the advantages of the virtual office and its suitability according to your business needs? Please reach out to our team of Panama offshore company formation agents.
Doing business in Panama
Panama offers multiple business opportunities to foreign investors. although the business and financial sectors, as well as the tourism and accommodation ones are one of the top ones, entrepreneurs can also invest in other sectors. Our team of Panama company formation agents
can provide more details about selected business fields. Below, we present statistical data regarding Panama’s economic activity.
- January: 331.33, a 3.57 difference compared to the same month in the previous year;
- March: 364.34, a 2.96 difference compared to the previous year;
- May: 328.00, 2.38 difference compared to the previous year;
- July: 322.31, 3.63 difference compared to 2018.
The numbers refer to the production volume for each month. The Monthly Economic Activity Index is comprised of data from fourteen economic activities, among which agriculture, manufacturing, retail, hotels and restaurants, several financial and business activities, etc.
Company formation in Panama is advantageous for many foreign investors because of the low incorporation requirements, the easy setup procedure, and the low maintenance requirements for offshore entities. Panamanian companies are not taxed on the income they derive outside of the jurisdiction, making the location ideal for running an international business. Companies that do derive Panama-source income are taxed at a rate of 25% of the net taxable income or 1.17% of the gross taxable income.
Foreign companies that are interested in setting up offices in Panama should know that starting with 2019, the licensed headquarters of multinational companies are subject to an income tax rate of 5% on the taxable net income which is derived from certain incentivized activities. Our team can provide more details on these tax particularities.
Other important issues one should take note of before starting the Panama incorporation process include the requirement to have at least three directors and a secretary (a director can also act as secretary and there are no requirements for residency). There is a requirement for at least one shareholder who can be a natural or legal person. The details of the shareholder or shareholders are not disclosed to the public. Offshore companies in Panama are not required to hold annual general meetings in the jurisdiction; these can take place anywhere in the world.