Panama is a very attractive place for business for many reasons. It is an ideal location for business owners seeking business, financial or personal privacy. Panama is known for its international companies and attractive tax system. The government of Panama strives to encourage and support foreign investment - there are no restrictions on foreign capital. Also, Panama has the fastest growing economy in Central America.
Doing business in Panama has many advantages. First of all, Panama is an independent jurisdiction with a high level of data protection. If you incorporate your business in Panama, you are exempt from all local taxes on income earned outside of Panama. In addition, Panama has a well-developed professional infrastructure and financial services industry. It should be emphasized that Panama also has an excellent telecommunications system and having your business located in this fabulous country gives you easy flight access to North and South America. All these factors have contributed to the increased presence of international companies in recent years. There are specific legal forms for companies in Panama, which are described below.
The Limited Liability Company (sociedad anónima) is the most popular corporate form in Panama and the most common choice for offshore operations. Only one shareholder is required to form a company, but a minimum of three directors must be appointed before the company can transact business. A major advantage of the stock corporation is that there are no deposit requirements and no minimum capital requirements. Shares in a sociedad anónima may be bearer or registered, with or without value, and may be of different classes. Strict regulations apply to bearer shares: Registered Agents are obliged to place the bearer share certificate in authorized custody. After paying capital tax (minimum $60) and an annual registration fee ($300), the Public Registry Office registers the corporation. All industrial and commercial companies should have an "operating display" costing 2% of the company's net worth.
A limited liability company (sociedad de responsabilidad limitada) should have at least two and no more than twenty partners. There are no restrictions on the nationality of the partners, but their first and last names and personal data must be registered with the public registry, as well as the amount of capital paid into the company by each partner. The articles of association must contain the following information: name and address of the partners, duration of the company, address, general purpose of the company, authorized capital and named resident representative (law firm or lawyer). If the number of partners is fewer than five, the Society is not required to hold meetings, but in general the partners should hold a meeting at least once a year. This particular legal structure requires $2,000 to $500,000 in capital. There are no special requirements for the filing of annual accounts or financial statements.
A general partnership (sociedad en nombre colectivo) is another option in Panama. The members of a sociedad en nombre colectivo have unlimited liability, which means that each member can be held liable and sued if another member acts fraudulently or negligently while conducting business on behalf of the general partnership. Of course, all partners are jointly and severally liable for business debts. Open partnerships do not have to pay taxes on income they receive from outside of Panama (even if that income is deposited in the country). In addition, they should not pay local capital taxes, although they are subject to local taxes if they operate a business or own real estate in Panama.
The simple limited partnership (sociedad en comandita simple) is basically a mixture of a partnership and a corporation. This special legal form requires at least one shareholder. It is also known as a simple partnership and the partners are liable up to a percentage equal to what they brought or invested in the company. The main advantage of this type of company is that income earned outside of Panama is not taxed. The sociedad en comandita simple is rarely used these days.
When setting up or doing business in South Africa, or dealing with partners from that country, it is imperative to understand the basics of corporate culture in this particular area. Business meetings and negotiations often start with both parties having unspoken assumptions and certain expectations of their partners. In-depth knowledge of South African business culture can make all the difference between a successful business meeting and a lost business.
Practical advice on business etiquette in South Africa Below is our list of pieces of advice to keep in mind when dealing with South African partners:
South Africans are unlikely to do business with people they haven't met personally. It is advisable to have a friend introduce you in order to build successful business relationships. If possible, try to draw the partner's attention to South African business references that you already have in your portfolio. It is highly recommended that you receive letters of recommendation in case you have done business with mutual contacts of the company or entrepreneur with whom you wish to develop a relationship. Most of the time, a first business meeting is more about personal contact and getting to know one another than a direct discussion of business issues. The chances that South Africans will do business with you are much higher if they trust you as a person. Keep in mind that almost everything is closed from mid-December to mid-January, during Easter and most Jewish holidays. Therefore, do not plan your business trips and meetings on these dates.
Working hours in South Africa are almost the same as in western countries, including the fact that most South African companies are closed on weekends. Big exceptions are banks and employees of state offices, because banks and state authorities are often open until 12 noon on Saturdays.You may face quite a challenge to locate a certain address in South Africa. This may happen because of the way in which the address system works. In case you are driving to a meeting with clients/partners, you better leave early to make sure you have some extra time to find your destination address and to park your car safely. We would recommend taking a cab rather than driving yourself.
Remember that acceptable business clothes are suits and ties. Shirts preferably in light colours. If you aren’t wearing a jacket, make sure to put on a long sleeved-shirt. In case you are invited to a dinner at someone’s house, a dinner jacket is normally expected. It is advised for women to put on dresses and skirts instead of pantsuits and the former should not be sleeveless, too tight, or very short, as it is considered a bad taste. Keep in mind that winter in South Africa starts in June and lasts until August, so do not forget to dress something warm in case you are visiting during these months.
Most locals speak English quite well, therefore, it is not required for you to translate documents or materials into any of the African languages.
South Africans are quite friendly and open, meaning they often express emotions openly. It is a quite common situation when your business partner slaps you on the shoulder, shakes your hand tight, or even holds your hand as a gesture of trust and friendship.
It is considered polite to offer small gifts to your partners. If you are invited to a house for dinner, do not forget to bring some gift: a box of chocolate, wine, or something similar – it is considered a good gesture and it shows respect for the hosts.
Always show respect to elders, even in situations when they are not actually a part of the company. Elders are widely respected and usually considered to be extremely wise and experienced; those who disrespect elders openly are often end up being classified as undesirable business partners.
Speaking of table etiquette and cutlery, the knife should always be kept in the right hand and the fork in left — never switch hands and never wave your hands around while holding cutlery. It is also considered a minor insult to leave food uneaten – so it is advised to plan prior to ordering dishes. Smoking is generally accepted, but only after all the guests has finished their food. Never chat or talk with waiters during the meal.
It is generally considered impolite to point your finger at anyone, also the V for victory gesture is considered offensive. Remember not have a dialogue while having hands in your pockets.
The monthly minimum wage in Bolivia is USD 290. Bolivia has a public debt equal to 26.7% of the country's gross domestic product (GDP) as measured in 2014. Based on consumer prices, the inflation rate in Bolivia is 6.5%. The currency of Bolivia is the Bolivian Boliviano. The plural form of the Bolivian word boliviano is bolivianos. The symbol used for this currency is Bs., abbreviated as BOB. The Bolivian boliviano is divided into centavo; There are 100 in a Boliviano. Every year, consumers spend around US$11,358 million. The ratio of consumer spending to GDP in Bolivia is 0.04%, and the ratio of consumer spending to world consumer market is 3.27%. Corporate tax in Bolivia is 25%. Personal income tax ranges from 0% to 25% depending on your specific situation and income level. The VAT in Bolivia is 13%. In 2013, Bolivia received US$658.6 million in foreign aid. In 2014, foreign aid totaled $721.8.
Gross domestic product The total Gross Domestic Product (GDP) calculated as Purchasing Power Parity (PPP) in Bolivia is US$70,279 billion. The gross domestic product (GDP) calculated as purchasing power parity (PPP) per capita in Bolivia was last at 6,266,141 US dollars. The PPP in Bolivia is considered very good compared to other countries. A very good PPP indicates that citizens of this country find it easy to buy local goods. Local goods can include food, shelter, clothing, healthcare, personal hygiene, essential furnishings, transportation and communications, laundry, and various types of insurance. Countries with very good purchasing power parities are safe locations for investments. The total gross domestic product (GDP) in Bolivia is 30,601 billion. Based on this statistic, Bolivia is considered as a medium economy country. Middle economy countries support an average number of industries and investment opportunities. It shouldn't be too difficult to find worthwhile investment opportunities in mid-sized economies. The gross domestic product (GDP) per capita in Bolivia was last at 2,728,414 US dollars. The average citizen in Bolivia has a very high level of wealth. Countries with very high per capita wealth have a longer life expectancy and a very high standard of living. There are highly skilled workers in many industries and labor is very expensive in these countries. Very wealthy countries offer safe investment opportunities as they are often backed by a diverse and thriving financial sector. The annual GDP growth rate in Bolivia averaged 5.8% in 2014. According to this percentage, Bolivia is currently experiencing significant growth. Countries that experience significant growth offer the best opportunities for a significant return on investment, as the GDP growth rate is the most important indicator of economic health. As GDP grows, so do businesses, jobs and personal income.
Confidus Solutions deals with not only offshore companies and banking, but also provides all necessary business support services. Our professional team is much more than traditional bookkeeping agencies or company formation agents. We can ensure all required support, including legal framework and personal assistance, and these are things that provide our clients with comfort they deserve.
Our business support services include following offers, but are not limited to:
Legal address; Mail forwarding; Bank accounts opening; Translation services; Document legalization and verification; Business due diligence; Representation during negotiations; Consultations regarding insurance; Real estate purchase and due diligence; Legal advice on commercial law; Virtual office; Management office; Contract law. We highly value needs of our clients, so we can offer you more services on case-to-case basis. Even though our central office is located in Europe – our numerous co-operation partners around the globe can help us find unique solution in any part of the world!
The country's currency is the Iranian rial. The symbol used for this currency is ﷼, abbreviated as IRR. 13.1% of the country's population is unemployed. The total number of unemployed in Iran is 10,743,537. Iran exports about US$61.22 billion and imports about US$64.42 billion each year. The country's Gini index is 44.5. Iran has a Human Development Index (HDI) of 0.749. The Global Peace Index (GPI) for Iran is 2.409. Iran has a public debt equal to 50.4% of the country's gross domestic product (GDP) as estimated in 2012. Iran is considered a developing country. A nation's stage of development is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality and quality of life. The country's main industries are petroleum, petrochemicals, gas, fertilizers, caustic soda, textiles, cement and other building materials, food processing (especially sugar refining and vegetable oil production), ferrous and non-ferrous metal processing, armaments.
The total Gross Domestic Product (GDP) valued as Purchasing Power Parity (PPP) in Iran is US$1,357,028 billion. Every year, consumers spend around $190,776 million. The ratio of consumer spending to GDP in Iran is 0%, and the ratio of consumer spending to world consumer market is 0.44. Corporate tax in Iran is 25%. Personal income tax ranges from 0% to 35% depending on your specific situation and income level. The VAT in Iran is 10%. In 2013, Iran received $148.8 million in foreign aid. In 2014, foreign aid totaled $100.9.
B2B (Business-to-Business) Trading Company B2C (Business-to-Consumer) Trading Company
B2B (Business-to-Business) Trading Company The most extensive use of trading companies is as intermediary trading companies or B2B companies. These businesses usually 1) specialise in a certain range of products or services, which they purchase from suppliers or merchants; 2) broker the products or services (i.e. add value and commission to the transaction); and 3) coordinate the logistics of delivering these products/services to the purchasing company (i.e. arranging the delivery and providing their own or affiliated transportation services).
B2C (Business-to-Consumer) Trading Company B2C refers to selling products or services to the end client, and so the final destination of the trading company’s goods is usually a shop.
Planning a commercial structure When planning a B2B commercial venture, consider the following:
Taxation: The corporate income tax of your chosen jurisdiction plays a large role in structuring your business. You will also need to think about withholding tax, payroll requirements, VAT registration (if based in the EU) and other tax issues. Banks: A fast, easy to reach, convenient and trustworthy bank is essential for any commercial enterprise. Bank fees, commissions and especially the speed of transactions can be crucial to a trade. We therefore recommend that you seek professional advice from us when choosing a bank for your company. Legal and Accounting Requirements: While a prestigious business location can be important to your trading business, some of the most respected jurisdictions place excessive demands on business owners. Contact Confidus to ensure you are aware of all legal and financial obligations before registering your company. When planning a B2C trading company:
If you intend to sell your products or services locally, you will need to develop strong relationships with local consultants, real estate agents, accountants and other service providers within the jurisdiction where your business will operate. Confidus will help you with all local arrangements including:
Find a location for your office, shop or warehouse Personnel search and recruitment Find a local accountant For import/export operations, Confidus can also assist with customs clearance, warehousing arrangements and document preparation (sales contracts, CMRs, export declarations, etc.).
Corporate documents, also called legal documents, are a set of specific documents that write down all the necessary facts about the company. These documents are called the face of the company as they are the source of official information about the company. Whenever a company is formed or changed, documents containing facts about the company or the facts about the changes in company law must be submitted to the business register. The registry amends the information in the commercial register and attaches the submitted documents to the company's file so that any person is entitled to receive the official facts about the company.
There are different types of corporate documents, each containing different information. The most important documents are the constituent documents, such as the memorandum of association and the articles of incorporation.
Each document has strict requirements and a specific form. A signature on some documents must be notarized to be legally binding. These documents are usually drawn up by lawyers or law firms specializing in business law. It is important to remember that the status and requirements of legal documents vary by jurisdiction. Also, the names of the documents may vary in different countries.
Corporate documents required for company formation In order to incorporate a company, two basic incorporation documents are required:
Social contract It contains the basic conditions under which the company may operate. The document consists of information such as the company name, information on the founders, information on the equity of the company, the permissible amount of the formation costs and their disbursement order, etc.; social contract It generally defines the responsibilities of the board, the nature of the business to be conducted, and the means by which the owners exercise control over the board. With the consent of the founders, the Articles of Association may contain specific resolution-making provisions, limitations of the Board of Directors, powers of the Council and other specific terms relating to the procedure of transfer of shares. Other secondary documents may be requested. These are as follows:
An application from the local company register – each state has its own form that must be submitted for changes to be made; Statement of each board member / approval of board member; List of shareholders / division of the register of shareholders (in the case of a limited liability company); Specification of the company address / notification of an office address; bank statement on the payment of the share capital; Receipt of payment of state fee;
» Search for DavisThompson's content
Sun Jan 28, 2024 7:17 am
