Why is Panama the preferred offshore jurisdiction?
Starting and running your own offshore business or offshore project isn't easy. You may need specialist advice, such as help with legal and taxation issues or managing your finances. And you might want to talk about your ideas and problems with someone who understands the challenges you face.
When you come to the point where you have decided to incorporate a new offshore company, you shall next decide under which offshore jurisdiction you will want to operate your own offshore business. There are plenty of offshore jurisdictions and plenty of advices on Internet and in books covering the offshore subjects.
There are many things to consider in choosing the right offshore jurisdiction. For some residents of high taxation countries, the choice of the offshore jurisdiction can be critically important.
Further, there is no general solution for everyone in choosing the offshore jurisdiction. But for many, we want to present some of advantages and benefits in choosing Panama as offshore jurisdiction or domicile for your investment or offshore business.
Advantages of Panama as Offshore Jurisdiction
Panama is a free country. It is independent and sovereign state. Those facts make a big difference when your local taxation office begins to investigate the business you are running.
Panama has no information exchange agreements with other countries. That means that an official letter from the tax office in your country to any of Panamanian banks or government agencies, will fail to give the result. In most of cases, such a letter will remain unanswered. That is what is meant with sovereign country. Panama is independent and unlimited by any other country, it has its own government and is not subject to another power.
Stability of an Offshore Jurisdiction
What do we mean with stability as offshore jurisdiction?
By stability, we want to stress the point of the quality or attribute of being firm and steadfast offshore jurisdiction in regards to its own corporate and banking laws.
What is that?
Let us take an example of a company incorporated in the USA or anywhere in the EU. Such a company DOES enjoin the great stability in regard to its own corporate laws. Any attorney, lawyer, government agency or creditor, must first follow the local corporate laws in order to sue the corporation or get any informations in regards to such a local company. Local government of the USA or almost anywhere in the Europe and in many other countries, will support and protect the local company by its own corporate or company laws. It will not allow the piercing of the corporate veil, nor it will recognize any evidence against the corporation brought in an illegal manner.
Such is the Republic of Panama in regards to its company and business entities laws. But Panama laws give superior protection in comparison with USA or EU countries.
Small offshore jurisdictions, advertising and promoting their confidentiality or their far away positions, cannot really and practically stand the pressure of high taxation countries. Such small jurisdictions have been created by wealthy and rich people and as soon as you have low profile you will have a nice strong protection from a small offshore jurisdiction. But if it comes to some real liability, what can happen to any company in the world, small and instable offshore jurisdiction will not practically protect you as owner and such small offshore jurisdiction might even break its own laws of condfidentiality and corporate matters.
Panama is a big and strong and stable offshore jurisdiction. When it comes to corporate liabilities, Panamanian corporate laws will stand with you and offer you practical solution and protection. Such protection will not be just promoted protection or advertised protection but it will be real and practical.
Oppositely, the small offshore jurisdiction will not be able to help you when it comes to real corporate liabilities. In order to save their "tax haven", small offshore jurisdiction will reveal the beneficiary behind the corporation to anyone asking for it. Attorney or lawyer working for such small offshore jurisdiction, might even try to sue you in your own home country. We do not call that piercing the corporate veil. We call that barbarity.
By using your Panamanian company and principles of Thetaworld™ Knowledge, you will gain the simple and stable tool for offshore investment and business which will stand pressure in the long run.
Corporate Advantages of Panama as Offshore Jurisdiction
Some well known corporate advantages of Panama as offshore jurisdiction are:
- that both registered and bearer shares can be issued,
- that shares of non-par value can be used,
- that shareholders, directors or officers can be other entities or companies,
- that shareholders, directors or officers can be of any nationality,
- that shareholders can remain totally private and confidential,
- that officers of the corporation can remain private and confidential,
- that company name can be in any language,
- that there is no exchange control in Panama.
- that local currency is Balboa, equivalent to US dollar,
- that no annual meetings must be held,
- that meetings can be held anywhere in the world,
- that corporate resolutions can be signed on different places and in different times,
- that facsimiles of signatures or digital signatures are recognized,
- that no accounts of the company need to be reported or filed with the government for offshore companies,
- that there is no tax on income gained outside of Panama, or inside of Panama in regards to other companies,
- that corporate veil cannot be pierced,
- that shares (stock) of the corporation does not require paid in capital,
- that consideration for shares can consist of services, goodwill or anything what directors deem to be enough,
- that there are no restrictions of funds coming to Panama or going out of country,
- that Panama has no mutual agreement treaties for sharing of the banking informations,
- that Panama does not recognize court orders from other countries, unless in cases of drug smuggling and drug money laundering,
- that Panama is business oriented country,
- that Panama is based on the Roman law system,
- that Panama has no military,
- that Panama is home to the second largest international distribution and trade center, Free Trade Zone, the Colon Free Zone,
- that Panama is well known and respected international trade and banking center,
- that Panama has virtually zero inflation over the years,
- that Panama is member of many Free Trade Agreements,
- that Panama has been ranked as first in the Central and South America for low cost of living and operational cost of labor,
- that Panama has the best risk-investments qualifications,
- that Panama has strictest banking secrecy laws.
Contact form
Please complete this contact form.
