Incorporate in Panama for Privacy and Superior Banking Options
Panama is a Central American country which offers a high degree of privacy compared to other jurisdictions.
If your home country is in the English speaking world the fact that business is conducted in Spanish adds a layer complexity to any government or creditor enquiries.
In my experience of dealing with Panama they will stonewall every enquiry from hostile creditors.
They have strong privacy laws – the kind that the Swiss used to respect – and you can be sure that your affairs will remain secret when you incorporate in Panama.
Panama is a territorial tax country, so when you incorporate in Panama there is no corporation tax on profits earned outside Panama.
There are no licensing requirements on Panama companies for activities outside Panama.
Panama is also one of the few jurisdictions where bearer shares are still possible, although identities of the beneficial owners have to be kept with the registered agent in Panama.
Registered shareholders are not publicly disclosed in any case.
Nominee directors are inexpensive in Panama so only the names of the Panamanian nominees can be found when somebody does a search of the Panama companies register.
You control the company with a power of attorney, which is never disclosed to anybody.
There are no filing requirements for Panama companies. There is a small franchise tax paid to the government every year to keep the company in good standing.
There’s no need to deposit or pay the share capital in Panama.
The process of incorporation in Panama is fast compared to some jurisdictions. You can have your incorporation completed in a few days.
There’s a good choice of local banks to open accounts with for your Panama corporation.
Although you don’t have to visit the country to incorporate in Panama you’ll have to make a trip there to open a bank account.
It’s worth it though as banking privacy is very strong and most banks in Panama do not have connections to the USA, the EU or the UK so they are unlikely to be pressured into releasing your details to foreign authorities.
The local currency in Panama is the US dollar so there are no issues with foreign exchange when you’re banking there.
Corporate directors are possible in Panama, although I’ve always found the local nominees to be reliable and act as a shield against any legal troubles.
Existing offshore companies who’d like to take advantage of Panama’s enhanced privacy and asset protection can move jurisdiction to Panama.
In my view anyone operating an offshore company in a jurisdiction like the BVI that doesn’t respect privacy should consider moving it to Panama.
All in all Panama is a good, robust option for privacy seekers. It offers low cost, high privacy, hassle free offshore incorporation.