Panama Offshore Corporations: Frequently Asked Questions
Panama Offshore corporations are companies that do not do significant business in their country of incorporation. The Off shore corporation may also be known as an offshore company, an International Business Company (IBC) or a non-resident company. Limited liability corporations may also be formed as Panama offshore corporations. This FAQ will focus on the advantages offshore corporations may offer you.
What are the benefits of Panama Offshore Corporations?
Panama Offshore corporations have several advantages over incorporating in the country you do business. These include asset protection from lawsuits, increased privacy, confidentiality, dramatically reduced taxes, a global presence, and more flexible business laws than in your home country.
If you are concerned about over-zealous attorneys, ex-spouses, ex-business partners, Big Brother or just about anyone invading your privacy, an offshore corporation can protect you. Your off shore corporation’s accounts will be confidential, hidden from potential intruders. With offshore corporations, you can take advantage of high-yield mutual funds and other strategies that may not be available in your home country. You can expand your business, offering products or services worldwide, without compromising your privacy.
Why should I have an Panama Offshore Corporation?
A Panama offshore corporation that has been properly established will give you, as the owner, financial confidentiality. If you have an offshore account in your name, your name as account holder is easy to trace. For example, if the offshore bank mails account statements to account holders, a third party could intercept them. Your financial details would be visible on a statement with your name at the top. Your privacy would be compromised. If, on the other hand, the account is in the name of an offshore company and the statement is intercepted, there is no direct personal link to you as account holder. The account is held in the name of the offshore corporation, and you can form your off shore corporation in a country with strong laws protecting the account signatories from being revealed to any outside party. You may not even need to be listed as an officer of your offshore corporation.
What are the advantages of having multiple Panama Offshore Corporations?
There are clearly many advantage to owning an off shore corporation, but what about owning more than one offshore corporation? Or even several Panama offshore corporations? Owning more than one corporation allows you to transfer funds between companies that are free from government reporting. There is a significant reduction in paperwork because your government probably doesn’t require you to report transfers of money between one foreign bank account and another. Not only could this protect your privacy, but you save money by not having to hire someone (or outsource to someone) to do the paperwork.
Are Panama Offshore Corporations legal?
Does it seem too good to be true? It isn’t. If you are a US or Canadian citizen, you will be expected to pay taxes on income generated by your offshore corporations. However, there is a perfectly legal way to protect your privacy: form a Nevada “C” Corporation (or an Alberta Corporation if you’re Canadian). The income is reported in the tax returns of the corporation, not you. This can also save you in taxes, because the "C" corporation pays lower income taxes in most brackets than does an individual. As always, seek tax and legal advice from qualified, licensed professionals.