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Offshore Banking & Investment Services in Panama
Through our partners established in Panama, Vertical Realty Advisors is able to provide you with a complete range of legal services that include offshore banking and investment services.
Panama is highly regarded as an offshore banking haven and has been a solid choice for protections of assets and owners. Two of the best legal structures available in Panama include the corporation and the foundation where each offers security and privacy that allows the owner(s) to hold assets anonymously if desired.
Our legal team in Panama can help you achieve your investment strategies and can explain in further details how use these structures for maximum benefit.
Assistance is also available if you need business, personal banking and investment advice.
Panama Offshore Bearer Share Corporations
Overview
Established in 1927, this law has provided Panamanian corporations the ultimate flexibility in establishing themselves in an economical, fast and simple manner. This is why nearly half a million corporations have been registered in this nation.
Corporations are formed easily with a minimum of three directors which can also been nominee directors for additional anonymity. Any natural person, of any nationality, from any country can be a director as well as any legal juridical person can act as a director.
The Articles of Incorporation can be as general or as specific as you wish and no minimum capital is needed. With a registered Panamanian corporation, the company can acquire and purchase property, apply for loans, mortgages, contracts, open bank accounts and conduct business freely both internally and externally of the country.
One of the greatest advantages is that profits created outside of Panama are entirely tax-free.
Uses
Panama Corporations can be used for a wide range of purposes depending on your specific needs. Everyday, corporations are registered in Panama by different businesses and individuals across the world looking for protecting their assets, furthering privacy, diversification of investments, minimizing taxes, international trade, trusts, ownership of real estate and assets, and more.
Corporations have a distinct advantage when it comes to real estate property. If a corporation wishes to sell a property that it owns, instead of going through the traditional elaborate sales process of real estate transaction, the corporation can simply transfer the shares of the corporation to its new owner. This transaction allows the corporation to transfer ownership of property without incurring some the taxes that are usually involved in a real estate sale.
Privacy
Panama is truly dedicated and upholds their laws concerning corporate and banking privacy – they are one of the best in the world, if not the best in providing protection of the corporation’s assets and ownership identity privacy. Other countries which may have been previously known in the past as offshore havens and are under British rule do not uphold the same values as recent pressure and influence from developed nations have begun to remove the walls of privacy. However, Panama has full autonomy over its decision and is not controlled by any other country. This renders it the perfect spot for establishing an entity who will keep today’s benefits for decades to come.
Facts
2nd Most Popular Place for Incorporation in the World – Panama is the second most popular country for incorporation after Hong Kong
No Taxes or Reporting Requirements – If Panamanian corporation is non-resident, there is no reporting requirement or taxes to be paid
Private and Confidential – Panama’s laws allow your corporate books to be maintained private and confidential at all times
Ownership is Private – No one needs to know who owns the corporation. Share certificates can be issued in Nominative or Bearer form. Panama doesn’t require the directors or officers to be the legal shareholders either.
No Capital Requirements – There’s no minimum needed to establish a corporation
Directors – A minimum of three directors are needed for forming the corporation. Directors can be natural or juridical person. There’s no restrictions and directors and shareholders can be from any nationality, and have residency in any country.
Nominee Directors – If desired, we can provide “nominee directors” for the initial establishment of the corporation. In this case, these nominee directors sign letters of resignation so you can replace those directors at any time you wish.
Annual Corporate Franchise Tax – Panama has a low corporate registry tax of $250 US per year to remain active.
Convenience – You don’t need to be in Panama to establish a corporation. With our services, you can register a company without having to visit Panama.
Re-Domiciliation – You can reestablish (aka “re-domicile) any corporation from any other country to Panama. Many individuals who established corporations in other British territories are current domiciling their corporation to Panama to benefit of more private and security.
Legal Address – Panama requires a corporation to have a legal physical address in Panama. The law firm can provide that legal physical address as the registered agent.
Panama Corporate Tax Advantages
No tax reporting requirements
No income tax / capital gains tax / sales tax / capital stock tax / estate tax / stamp tax / inventory tax / property tax / gift tax / succession tax
No tax to shareholders
No interest on issuance of corporate shares
No stock sale or transfer tax
Panama Private Interest Foundations
Overview
Private interest foundations in Panama combine aspects of a corporation and trust and it has a specific purpose or activity for the benefit of a person or group. Foundations do not have owners and the beneficiary can be a single person – including the founder.
Foundations must be for non-profit purposes. Yet, it can acquire and own assets from all types including real-estate, shares of a corporation, it can have bank accounts and engage in other activities.
Only $10,000 is needed to establish a foundation. Similar to a corporation, three members are needed in the charter. As mentioned above, there are no owners or shares and assets can be transferred and invested at any time as long as they are in line with the foundation’s goals.
Assets and profits derived by the foundation are confidential, totally private and are legally protected by law with severe penalties in any breaches of this rule. One of the key benefits is that foundation’s assets are considered completely separate from the founder and/or beneficiaries and these cannot be seized or frozen to satisfy any personal obligations by the founder/beneficiaries. The identity of the founder can also remain anonymous.
Assets can be transferred or disposed very easily through a written statement that can act as binding last will or testimony that avoids the disputes these typical transfers experience. These structures provide a great advantage when it comes to international estate planning, privacy, protection and anonymity to the founder and beneficiaries of the Foundation.
Advantages of Panama Private Interest Foundations
These foundations benefit a person(s), family or a social purpose. Here are some examples that they are usually used for:
Foreign Corporation Rules – Developed countries which are usually heavily taxed such as in North America, Europe and Australasia, impose Foreign Corporation rules where they require citizens to submit tax declarations of any foreign company they may be shareholders of. Instead of keeping ownership under the person’s own name, the owner can transfer these shares of their foreign corporation to the foundation and avoid the CFC reporting rules.
Asset Protection – Unless the foundation is in breach of the government’s law, assets cannot be frozen or confiscated in trying to satisfy a personal claim. As in any business transaction, the only time an asset can be withheld is to satisfy a contractual obligation where the foundation is directly responsible (ex: real-estate purchase).
Personal Compensation – Using the assets is very simple as you can appoint yourself as a manager with formal written agreement of the council and instate compensation that includes a salary, expense account, legal, travel, health care and any living expenses without subjecting them to taxes.
Banking – When opening corporate or investment accounts, banks may require to disclose the beneficiary/owners of the company. With a foundation, the owner is privately appointed for further privacy and confidentiality.
Transferring Funds - The Panama Foundation can receiving incoming and outgoing transfers of capital from outside.
Family Donations – Individuals can use the foundation to give educational or special grants to their family or any member they choose. Some governments have ‘gift taxes’ and demanding reporting requirements with donations. There’s no requirement in Panama.
Last Will and Testament – Foundations can be a final and completely bnding last will and testament free of legal battles can tarnish the traditional will. The Letter of Wishes states how the assets will be used, transferred, or disposed of in the event of the beneficiary/founder’s death and this will can be confidential until that time.
The Greater Good – Foundations can be used to further a social goal in the areas of education, religion, humanistic, scientific or any other activity.
Depending on your needs and goals, our legal staff can provide you with a complete consultation to identify which structure will best suit your needs. Just simply contact us and get started today!
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