We respect your time so we only picked the most relevant questions while keeping our answers short and to the point. If you require more details and clarifications, or an answer to a topic not covered in our FAQs, select your preferred method of contacting us.
What taxes do we need to pay when we have a Panama Corporation?
Do I need to visit Panama to start a corporation or foundation?
No, the subscribers would incorporate on your behalf and we will provide their resignations immediately thereafter. All minutes and other books of the Panama Corporations and Foundations can be kept outside of Panama. With your Panama Corporation, you may open bank accounts in many jurisdictions with bank secrecy without ever visiting the banks. To open an account with certain Panama banks, you need to visit them in order to receive your debit or credit cards.
What are the nominee directors?
What is the best type of Offshore Company to save on taxes?
The Anonymous Panama Corporation at a total cost of $1,200 (including our assistance with opening a bank account in Panama) is a good choice for saving taxes. The actual owner of this corporation is not registered in any public records. Ownership of the corporation is established with notarized shares and the shareholders have the absolute authority to control the directors, officers and assets of the corporation. The designated signing officer (must be different than the publically registered Directors, President, Secretary or Treasurer) is operating with a Power of Attorney that is only given to banks operating in jurisdictions under strict secrecy laws. Therefore, the identity of the signing officer cannot be revealed and it protected by law bearing criminal consequences for the bank officials.
What is the difference between a Panama Corporation and a Foundation?
Panama corporations have directors and shareholders and can engage in profitable activities whereas the Foundations are Trusts that may hold and control assets but are not directly involved in business activities. The foundations have council members and beneficiaries and are controlled by a Protector whose name does not have to be registered thus allowing the Foundation a total secrecy over all of its activities. A full proof secrecy structure would consist of a Foundation holding assets and having ownership of a Corporation that is conducting profit generating business activities.
Free Panama bank account?
The major Panamanian banks only open accounts for businesses with a presence in Panama - although we do have smaller banks that will still open offshore accounts. Assisting the local (Panama) businesses with their bank account opening is relatively easy and we don't charge - because the clients generally use a range of our other services and licensing applications. Assisting with the opening of offshore bank accounts with the smaller banks in Panama (without a visit) is an unpredictable process and we discourage it. The cost varies between $1,000 to $1,500 depending on the type of client or the mood of the compliance officer. Unless there is a special reason for such an account (e.g. forestry or agricultural incentives in Panama), we can't see the point.
How can I save on taxes back home and lawfully transfer my profits to an offshore jurisdiction?
Re-invoicing from a Panama corporation with the paper trail showing value added in Panama, can reduce the profit in the home country. This and other similar methods must be very carefully set up to withstand a possible audit.
How can I transfer my money back home from an offshore jurisdiction?
If you need to bring back to your country less than 50,000 thousand Dollars or Euros per month, you may use credit or debit cards drawn your offshore bank. For larger sums of money, you can get back-to-back loans and receive the additional benefit of reducing the interest payable from your taxes that are payable in your country of residence.
How Secure is my Cash in an Offshore Bank?
The textbook answer is that it depends on the bank, but there are some general considerations. In the offshore jurisdictions, the banks are cash rich because many foreign investors keep their cash with offshore banks while loans, mortgages and credit cards to the local population are negligible. Banks in the developing nations tend to overextend themselves with mortgages that should have never been approved and credit cards to consumers that can't afford to make their payments. Certain jurisdictions are safer than others with Panama ranking at the top since they were one of the pioneers that started the offshore industry in 1927. But with over 80 banks in Panama, you need the assistance (at no cost) of our experienced advisors that have closely examined the assets, management strengths, operations and other details that would determine the strengths and weaknesses of each bank in Panama and many other jurisdictions with solid banks and strong secrecy enforcement.
Is a large Multinational Bank a Better Choice than a Solid Local Bank?
Technically, large Multinational Banks are separate legal entities while operating in offshore jurisdictions. Some clients are concerned, however, that the head offices of the multinational banks may be forced to succumb to pressures from their governments to "leak", from outside Panama's secrecy environment, protected information related to their Panama account holders. This would be highly illegal but it will be very difficult to sue a multinational bank while you are squeezed by the tax authorities of your country. It may be wiser to work with a solid local bank and avoid that risk all together.
Do Online businesses require licensing?
Generally, there are no licensing requirements for the operation of most online businesses by a Panama Offshore Corporation. Some types of online businesses can gain credibility in the eyes of their clients, distributors, factories or government agents by presenting some type of registration. For example, some financial businesses can get within 2 weeks a Panama license that would take over a year, cost a lot of money and undergo close scrutiny in most other jurisdictions. An online Casino or gaming license can be issued by the government of Panama but it will take more than a year. However, it is still a lot cheaper and easier to get by comparison to most other countries. In conclusion, some online businesses do not require any licensing, in other cases licensing is not compulsory but can be helpful, while for other online businesses licensing is mandatory. A specific plan of action will be designed during the consultation of the client with one of our Offshore Analysts.
Can I get a Merchant Account to deposit the funds directly into my Offshore bank Account?
Online businesses are ideally suited to work with offshore companies because they can conveniently have the proceeds from their credit cards sales deposited directly into their bank accounts. Some types of businesses will have more obstacles to overcome in getting a merchant account depending on the nature of their products or services.
Can I get a credit card and a ATM (debit) card with my corporate account?
Some banks only offer Credit cards while others also offer ATM (debit) cards. Very few banks offer anonymous credit and debit cards. Some private firms offer e-wallets, anonymous credit and ATM (debit) cards but there is a risk involved in making the choice to go with such a company. The bank would always be the better choice.
What if I don't want my name to appear anywhere including the bank documents that are protected by bank secrecy laws?
Can I get a Virtual Office in Panama?
The virtual office services come with a phone number with call answering for up to 4 calls a month. We also provide a physical address and mail forwarding via email, and we can physically forward the mail to you as well if needed. The cost of this service is $500 a year. If you need a dedicated phone number, you would also have to pay the monthly phone company fees, which usually cost $16 a month. If you expect a higher volume of calls or have any special requests, you can let us know.