Selecting an offshore jurisdiction is an integral part of establishing an offshore structure or financial account. Panama have the following 10 characteristics:

* Stable Economy - the economy of the country should be stable.

* Strict Privacy Laws - there should be strict privacy laws that protect your banking information and corporate book information from anyone, including foreign governments.

* Tax Haven - no capital gains tax, no interest income tax, no inheritance tax, etc.

* Favorable Incorporation Laws - the corporate laws of the country should enable you to hold "Bearer Shares", have directors from any country, inexpensive, and be able to incorporate Private Interest Foundations.

* Stable Currency With No Currency Restriction Regulations - there should be no restrictions on the movement of funds in or out of the country.

* Stable Government - the government of the country should be stable and should use the opposite legal system of your domestic country (if your country uses common law, you should seek a country that uses roman law). The country should be safe to visit.

* Close Location, Time Zone Compatibility - the time zone of the country should be such that you can contact your offshore provider or financial institution during your normal domestic business hours & fly to the country quickly if necessary to handle business.

* Good Banking System - the banking system of the country should be advanced both in areas of banking infrastructure, government auditing, and technology.

* Excellent Communications System - the communications systems of the country should be technologically advanced in comparison with first world countries.

* Language Compatibility - the language of the country should be suitable for your understanding.

Panama is one of the most popular places in the world to incorporate, with currently over 350,000 registered entities. Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today. The Panama corporation law was promulgated over 70 years ago and has since been copied by many of the other tax haven nations such as Bahamas, St. Vincent, Bermuda, Belize, Isle of Man, etc.

Another Facts

Panama offers the most favorable and most flexible incorporation laws available in the world. Private Interest Foundations are also available, and are one of the most widely used estate planning structures in the world today.

* Panama does not impose any reporting requirements for non-resident Panamanian corporations.

* Panama is the registered domicile for over 400,000 corporations / foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong.

* Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid.

* Panama does not allow "piercing the corporate veil".

* Panama corporations share certificates can be issued in Nominative or Bearer form (anonymous form of ownership), with or without par value.

* Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.

* Panama corporations directors, officers and shareholders may be of any nationality and resident of any country.

* Neither the directors nor the officers of Panama corporations need to be shareholders.

* Meetings of directors, officers, and shareholders may be held in any country and accounting books may be kept in any country.

- It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation.

 

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