Asset Protection - Spotlight on Panama
Panama has developed many rules and laws that make it an excellent jurisdiction for asset protection with a wide range of structures available to business clients such as; foundations, corporations and trusts.
Panama still allows for corporations to be formed using bearer shares whereas most jurisdictions have done away with them or only allow their use in a limited form.
As an asset protection vehicle a bearer share corporation has several advantages including the ability to maintain anonymous ownership through the use of nominee directors provided by a Panama law firm.
The use of nominee directors shields the actual owners name from appearing in any public registries in Panama.
e company.
Ownership can be easily transferred by simply handing these documents over to another Various types of assets can be owned or controlled by Panama corporations ranging from bank accounts and stock brokerage accounts to artwork and real estate.
The anonymous company owner maintains all of the bearer share stock certificates which, in addition to the article of incorporation, are all that is required to prove ownership of thindividual.
Offshore income, that is income derived outside of Panama, is nottaxable according to Panamanian law.
For example, you could have a Panama Corporation that does its banking in Panama and maintains offices in Panama, yet if all income for this company originates offshore (outside of Panama), you will not pay any Panamanian tax on this income (check your local tax laws to see what reporting requirements you have for offshore income in your home country).
Panamanian banks operate with government issued banking licenses which allows them tocarry out business with the citizens of Panama, as well as foreign individuals and companies.
In general, Panama banks have proper branch offices throughout Panama with all the conveniences of modern banks that are found in the western world.
In order to get a full banking license in Panama an initial payment of $10,000,000 USmust be paid to the government.
A government issuedPanama banking license allows banks to conduct business with onshore as well as offshore clients.
This is in stark contrast to many offshore jurisdictions which operate "offshore bank licenses" which means that the licenses issued only permit the bank to open accounts for non-national clients (a rather dubious arrangement).
Panamanian banks also have their own ACH (automated clearing house) systems that permit online transfers between Panamanian banks at nominal cost (usually one dollar per transaction).
Presently there are thirty Panamanian banks in this system and it must be noted that these transfers are totally domestic and do not get transmitted over international wire systems.
Panama has a national currency called the Balboa which is pegged one to one with the US dollar.
Although Panama has it's own currency, only metal coins are minted and paper currency used is the US dollar making it convenient for US customers to travel and do business in Panama.
There are many well established Panamanian banks in addition to numerous multi-national banks operating in Panama with considerable foreign derived assets under management.
Panamanian banks also happen to have some of the best privacy protection laws in the world, which can only be broken in the case of serious crimes through a court order issued by a Panamanian court.
Panama is a stable, democratic country with no standing army since the US invaded in 1989 and removed Manuel Noriega from power.
Panama now has complete control over the Panama Canal after the US ceded control in the late 1990's but a treaty still exists with the United States which says that if the canal is under threat by a foreign power, the United States has the jurisdiction to enter the country and protect the canal and the Canal Zone.
Twenty percent of the Panamanian workforce is employed by the 135 resident banking units located in Panama so maintaining a good reputation internationally as a preferred banking destination is of extreme importance to the government and the people of Panama.
With over 400,000 corporations domiciled in Panama in addition to the large banking work force directly tied to these corporations don't expect the corporate or banking lawsto be changed by the government frequently unless they are forced to by outside pressure (which won't happen without obvious warning signs occurring in advance).
Panama still allows for corporations to be formed using bearer shares whereas most jurisdictions have done away with them or only allow their use in a limited form.
As an asset protection vehicle a bearer share corporation has several advantages including the ability to maintain anonymous ownership through the use of nominee directors provided by a Panama law firm.
The use of nominee directors shields the actual owners name from appearing in any public registries in Panama.
e company.
Ownership can be easily transferred by simply handing these documents over to another Various types of assets can be owned or controlled by Panama corporations ranging from bank accounts and stock brokerage accounts to artwork and real estate.
The anonymous company owner maintains all of the bearer share stock certificates which, in addition to the article of incorporation, are all that is required to prove ownership of thindividual.
Offshore income, that is income derived outside of Panama, is nottaxable according to Panamanian law.
For example, you could have a Panama Corporation that does its banking in Panama and maintains offices in Panama, yet if all income for this company originates offshore (outside of Panama), you will not pay any Panamanian tax on this income (check your local tax laws to see what reporting requirements you have for offshore income in your home country).
Panamanian banks operate with government issued banking licenses which allows them tocarry out business with the citizens of Panama, as well as foreign individuals and companies.
In general, Panama banks have proper branch offices throughout Panama with all the conveniences of modern banks that are found in the western world.
In order to get a full banking license in Panama an initial payment of $10,000,000 USmust be paid to the government.
A government issuedPanama banking license allows banks to conduct business with onshore as well as offshore clients.
This is in stark contrast to many offshore jurisdictions which operate "offshore bank licenses" which means that the licenses issued only permit the bank to open accounts for non-national clients (a rather dubious arrangement).
Panamanian banks also have their own ACH (automated clearing house) systems that permit online transfers between Panamanian banks at nominal cost (usually one dollar per transaction).
Presently there are thirty Panamanian banks in this system and it must be noted that these transfers are totally domestic and do not get transmitted over international wire systems.
Panama has a national currency called the Balboa which is pegged one to one with the US dollar.
Although Panama has it's own currency, only metal coins are minted and paper currency used is the US dollar making it convenient for US customers to travel and do business in Panama.
There are many well established Panamanian banks in addition to numerous multi-national banks operating in Panama with considerable foreign derived assets under management.
Panamanian banks also happen to have some of the best privacy protection laws in the world, which can only be broken in the case of serious crimes through a court order issued by a Panamanian court.
Panama is a stable, democratic country with no standing army since the US invaded in 1989 and removed Manuel Noriega from power.
Panama now has complete control over the Panama Canal after the US ceded control in the late 1990's but a treaty still exists with the United States which says that if the canal is under threat by a foreign power, the United States has the jurisdiction to enter the country and protect the canal and the Canal Zone.
Twenty percent of the Panamanian workforce is employed by the 135 resident banking units located in Panama so maintaining a good reputation internationally as a preferred banking destination is of extreme importance to the government and the people of Panama.
With over 400,000 corporations domiciled in Panama in addition to the large banking work force directly tied to these corporations don't expect the corporate or banking lawsto be changed by the government frequently unless they are forced to by outside pressure (which won't happen without obvious warning signs occurring in advance).