Panama offers privacy, confidentiality, offshore asset protection, tax planning, estate planning, investment diversification and international trade opportunities to businessmen who want to set up an offshore corporation.
It’s interesting that the majority of people who own offshore companies in Panama are people who are not residents there. People from all over the world, including North America, Asia, and Europe, choose Panama as the destination for their offshore entity for several reasons. Since they are many miles away from their businesses, it pays to have a resident agent to act on their behalf. This is why a Panamanian law firm is so essential to an offshore business from the very beginning.
Benefits of Using a Panama Law Firm
All your transaction with your Panamanian law firm is covered by a binding attorney-client contract. This means that the lawyers will never reveal anything about the nature of your transactions – unless you authorize it. Outside entities cannot command the law firm to submit any information that you do not want revealed. The only exception to the rule is if a Panama Court orders that the information be provided. Since this is a rare occurrence, you can be almost certain that your transactions will always remain confidential.
Setting Up Your Corporation and Bank Accounts
You should have your Panamanian law firm involved from the very inception of the business. Purchasing the incorporation of your business and setup of your bank accounts from a business that is not law based defeats the privacy and other benefits of forming an offshore entity.
These firms will be subject to your name, name of your business, financial information, email, passports, reference letters, and other information. This could affect your business dealings in the future since they have no legal requirements to keep your information confidential. In fact, if ordered by a court of law outside of Panama, the business may reveal your information at a moment’s notice. They are not bound by privileged communication, so it is within their rights to reveal this information if they choose to.
Not so with a Panama Law firm. All your personal and business information will be managed with the strictest confidence. If you choose to leave your name out of the business incorporation and financial accounts, the law firm will manage everything on your behalf.
Panama is a tax haven – this is the reason so many businesses setup of corporations in Panama. Although there are no income tax, capital gains tax, sales tax, shareholders tax, property tax, inventory tax, etc, you’ll have to pay an annual tax fee to the government. A Panama law firm will ensure that you are up to date with your tax requirements and advise you of any tax breaks and responsibilities.
Sign Important Business Documents
Signing your own documents and frequent communication with your offshore entity could expose your involvement if you want to keep it private. Panama lawyers are versed in offshore issues and are experts in the area of law, so they can sign and review documents on your behalf. With their assistance, you’ll be positioned to take advantage of new opportunities.
Mattie Dunneback is a lawyer in a medium-sized law firm in downtown Ohio. One of the persons he looks up to is Michael Kelly, lawyer and partner in the esteemed Kelly, Fernandez and Karney Law Firm. Follow him on Twitter @MattieDunneback