Doing Business Offshore with Panama Companies

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by: Sharon07
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Word Count: 556
Date: Wed, 17 Jun 2009 Time: 10:25 AM
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Many people want to start a new business either online or in a brick and mortar environment and those individuals require a means in which to reduce costs and taxes in order to plan for future expansion. Panama Companies offer a very good vehicle in which to conduct an amazing number of business activities all in a tax free environment. Since such companies are not subject to taxation on foreign income, they can easily conduct business online or in a branch office without having to file taxes on the income earned in the jurisdiction in which the directors reside.
One of the other great benefits of using Panama Companies is that they are allowed to conduct a multitude of activities by law; which are often times not permissible on the jurisdiction of the directors. For example, such companies can conduct financial services activities like exchanging currencies as well as operating online payment services. Other activities of Panama Companies include consulting, real estate, investing, import and export, software sales and development amongst others. With such a wide variety of prospective activities this type of company can undertake several activities at a time without having to worry about special permits or licenses.
Another great aspect of conducting business with Panama Companies is the use of bearer shares as the standard share type. Bearer shares allow for the smooth transfer of a company and in certain circumstances they protect the privacy of the beneficial owners. Should the owner of an offshore company in Panama decide to sell the company; he can sell the bearer shares of said company easily and make a slight change on the registry in order to update the company’s information with that of the new ownership. In the case of an emergency, these companies are great tools as the bearer shares can be signed over and even their transfer can be back dated if agreed upon by both parties. This allows for an added layer of protection for the beneficial owners of the company should the need arise.
When considering offshore banking, Panama Companies are great tools as they are allowed to both bank and invest in an international environment. The directors of a company can easily establish an account in a number of offshore as well as onshore jurisdictions when needed. There are no special requirements for a company established in Panama when it comes to establishing an offshore account. As long as the company as well as the directors meets the requirements of the bank the account can be opened under normal circumstances. Most companies established in Panama do not bank in Panama due to the difficulty and complexity involved in obtaining an account in the jurisdiction. Most opt for jurisdictions in which it is relatively easy to establish an offshore account.

Lastly, Panama Companies are simple to use. There are no requirements form companies conducting business outside of the country to file annual reposts. There is a small annual franchise fee payable to the government in order to maintain the company in good standing. There are no taxes levied on income earned outside of the country and there are very low taxes on income which requires special licenses from the government. All in all Panama is still a great jurisdiction to choose for offshore incorporation.

About the Author

Doug L. is author of this article on Assets Protection. Find more information about Panama Companies here.

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