Panama Corporations

[stochastic]

I have seen several questions regarding taxes and offshore corps. So here´s some info on corporations registered in Panama:

A Panamanian corporation offers the following benefits:
1. No reporting requirements (since Panama has a territorial tax system, while the income is earned offshore or from exempt sources, such as interest on bank accounts, then the corporation is not required to present tax returns or audited accounts).
2. While the income earned by the company is not Panamanian-source income, there will not be any income tax due in Panama and hence no tax returns necessary here.
3. Funds and accumulated offshore profits can be deposited or invested in any country in the world without becoming subject to taxation in Panama.
4. It is possible to keep a business under direct control while maintaining complete confidentiality. Names of the beneficial owners are not publicly available. They are not filed at the public registry.
So your corporation can own your forex or brokerage account under a company name, not yours.
5. The company is not required to file any changes to ownership schedule, after the registration is complete, which means that only the directors of the company will know who the shareholders are (since they maintain the company records and will be responsible for the issuance of the share certificates).
6. It is not required to maintain a legal address, such as a Registered Office in Panama. But every corporation has a Registered Agent in Panama, which must be a lawyer or a law firm.
7. There are no Citizenship or residency requirements or restrictions with respect to Owners, Directors and Officers of the company.
8. Shareholders' and Directors' meetings may be held anywhere in the world.
Shares of the company may be issued in a registered form or to "Bearer", known as bearer shares.
One person may hold all three offices of the President, Corporate Secretary and Treasurer of the Company.

 

[Adamus]

Do you remember the scene in the film 'Blow' where Johnny Depp turns up at his Panama bank or wherever it is, asks for a couple of million from his account, and the bank manager comes out and tells him the account's been closed and he can't have a cent?

 

[stochastic]

Do you remember the scene in the film 'Blow' where Johnny Depp turns up at his Panama bank or wherever it is, asks for a couple of million from his account, and the bank manager comes out and tells him the account's been closed and he can't have a cent?

I missed that one but I´ll look it up. The idea is not to have a Panama bank account with your corporation BTW, as this would defeat the purposes of the no tax law.
Cheers!

 

[stochastic]

Same can apply for a forex Company. Offshore Registration and banking in another jurisdiction to accept third party funds from clients.

 

[stochastic]

Corps

Confidentiality of Business Documents: Panama will cooperate in cases of: narcotics trafficking , terrorism, money laundering, and child pornography. Countries have what is called MLAT (Mutual Legal Defense Treaties) that calls for the release of information under certain circumstances. Most offshore countries have Tax Treaties that call for the release of other information to other countries in the treaty. Panama has no tax treaties with other countries being the only offshore banking and incorporation jurisdiction without any tax treaties. In Panama tax offenses are considered civil offenses. As a general rule the MLAT treaties require that the crime being investigated by the requesting country must also be a crime in the country the information is being requested from.

Currency and Exchange Controls: There are no restrictions or controls on currency exchange in Panama. The US dollar is the currency in Panama. With more than 150 banks, there are a few limitations as to the availability of foreign currency transactions in Panama City.

Panama Brokerage

 

[stochastic]

Bank and brokerage accounts can be open under corporate name without the owner´s name becoming a matter of public record.

# Article 74 of Decree 238 deals with protecting the privacy of Panama bank clients. It states that the Commission is prevented from conducting or requesting investigations concerning the banking affairs of any bank clients. Any data obtained by the Commission in the course of its normal regulatory functions may not be revealed to any person or authority, except if subpoenaed in accordance with the legal provisions in force (Panama Court Order required). If a violation of this occurred Article 101 of this Cabinet Decree contains provisions for the dealing of such a violation.

# Article 101 of Cabinet Decree 238 states that:
"Any person who furnishes information in violation of this Cabinet Decree, or who violates any of the prohibitions established in it, for which no specific punishment is provided for, shall be subject to a monetary fine as determined by the Banking Commission, without prejudice to applicable criminal and civil liabilities." Pretty heavy

 

[Hoggums]

Many boiler rooms are backed by panamanian bank accounts. Panama is a well known Den of money laundering and everyone should stay well clear. You just can't tell who's crooked and who is not.

 

[anley]

Anyone see the movie 'Blow'? Jonny Depp's character had millions stashed away in a Panamanian bank but when he flew down to collect they said there was NO money in the account.

OK, it was drug money but nevertheless.......

PS. Blow was a true story, read the book if you like the film it goes into far more detail.

 

[MrGecko]

Many boiler rooms are backed by panamanian bank accounts. Panama is a well known Den of money laundering and everyone should stay well clear. You just can't tell who's crooked and who is not.

Many boiler rooms way well be backed by panamanian accounts, but there are plenty legitimate (finance / investment) businesses there too.

 

[stochastic]

"but there are plenty legitimate (finance / investment) businesses there too." Can´t judge a place for some boiler rooms that eventually do go to jail. In which country scammers do not operate in?
Many American banks are opening up branches in Panama and standing in line, the Swiss, the French, Canada and other 100 countries have banks in Panama, corporations like GE Financial bought stakes in banks and so on, John Hopkins opened a hospital in Panama where you can get prime medical care. Could all these be boiler room scams?
"Many boiler rooms are backed by panamanian bank accounts" Absolutely not true. Boiler rooms cannot maintain a bank account opened in Panama these days. Very hard for foreigners to open a bank account in Panama without the proper documentation, with qualifications which are more strict that a bank in the US for example. Check out any HYIP or dubious operation and they have their money collection service someplace else. You´re right you should stay clear off Panama.

 

[Johnnynocash]

I've also read good things of Panama banking/finance and the favorable taxes for money earned outside of Panama. The individual who spoke highly of it did say that you needed to be there in person and shop around face to face for someone you feel comfortable with that can service your needs. And I'll have to agree, I wouldn't do it any other way considering my livelihood depends on it's credibility.

Any schmuck can make a website claiming to do the things your looking for and then just take your money, never to be heard from again.