David understands that his company is growing. His clients are no longer in C1 only, but he is also expanding his business globally to C2 and has plans to expand to other countries. He considers the possibility of establishing a subsidiary of this company in a country like Panama. He chooses Panama for the following reasons:

1. Strategic Geographical Positions; Panama is located in the middle of Central America and is considered as the Hub of Central America.
2. Panama has the Colon Trade Free Zone. This gives David the possibility to receive the merchandise from China into a free trade space zone located in Colon City. This way, if the merchandise is not sold inside Panama (meaning that it is not nationalized) and the only purpose of receiving the merchandise is to re-export outside Panama; David will not have to pay any importation, exportation or income taxes.
3. Panamanian Offshore Companies also known as “Sociedades Anonimas” have a very well reputation worldwide. The law that regulates them has not changed since 1927. Panamanian Offshore Companies provide a degree of protection and anonymity that few other jurisdictions do.  Bearer shares are permitted, meaning that the transferring of shares is very simple.
4. Panama has many tax and legal incentives; the company can issue invoices from Panama but it will not have to pay any capital gain taxes if the activity is carried out overseas.
5. Panama has one of the most well established Financial Centers in Latin America.  The economy is stable and reliable.

After considering all these aspects very carefully, David decides to contact a Law Firm in Panama which advises him with the best way to structure his Panamanian Offshore Company.

David contacts Delvalle & Delvalle Law Firm and flies to Panama to meet his new lawyers in person.  A lawyer is designated to David’s case, which explains in detail the legal and accurate way of structuring his Offshore Business.

The following structure is made with the specific considerations:

1. The incorporation of Panamanian Offshore Company.  Because David wants to preserve his anonymity, he chooses the option of appointing nominee directors to his company, meaning that members of Delvalle & Delvalle Law Firm will take up the positions of the board of directors. As a result, David’s name or any person related directly to him will not be disclosed in the Articles of Incorporation of the Company, which is a public document.

Powers of Attorney is granted to David in a private document so he can open bank accounts and do business on behalf of the Company.

1. David wants to preserve this anonymity and also be able to transfer the shares in a secure and uncomplicated way to his wife and children in case something happens to him. He considers the possibility of choosing bearer shares. The lawyer presents him another option; instead of choosing bearer shares, the company can issue nominative shares and appoint as the holder Panamanian Private Interest Foundation also known as PIF. This will provide David the following advantages:

• He will not be the direct owner of the Panamanian Offshore Company meaning that this will give him an extra layer of protection and make him less vulnerable to liabilities.
• Nominative shares are more secure than bearer shares because the actual name of the shareholder appears on the share certificate (This document is 100% private).
• Because David is not looking to transfer his shares to other third parties other than to his wife and children in the future, the lawyer advises him that a Panamanian Private Interest Foundation (PIF) is the best legal vehicle to do this.
• Panamanian Interest Private Foundations (PIF) regulations are based on the strictest legal principles of confidentiality and protection of patrimony.
• A document named Foundation Regulations also known as Foundation Wishes is created. This document is very similar to a will. This way David can legally state that he will be the sole beneficial owner of the Panamanian Private Interest Foundation (PIF). Under this, he can legally transfer all assets to his wife, appointing her as secondary beneficiary and to his children.

Once the structure is finalized and set up, David is taken by Delvalle & Delvalle Law Firm to one of the most prestigious Banks in Panama for an in-person interview. David was very pleased with the bank services and he is glad to establish the corporate account for his Panamanian Offshore Company through Delvalle & Delvalle Law Firm because this saves him a lot of time. He is confident that the account will be approved without any inconveniences. He can return to this home country without worry.

David flies back home the next day.  In a couple of weeks we will have everything ready to start operating with his new company.  By doing all of this he has the following benefits:

1. He now owns an Offshore Company in a country like Panama meaning that he expanded his business globally.
2. He will split his business in 2 ways; His Company from C1 will still issue invoices to his clients in C1 and the Panamanian Offshore Company will issue invoices to his clients overseas.
3. Because Panama uses the US Dollar as his official currency now he can pay to his providers in China without having to make any currency exchanges. He can also receive payments from his clients directly in US Dollars, thus saving him a lot of money.
4. All income generated outside Panama is tax exempt, regardless if the income is located in a Panama Bank and under a Panamanian Offshore Company, meaning that he will not have to pay any income taxes in Panama. Interests earned from his Bank Accounts are also exempt.
5. David will have to pay fewer taxes in C1, because the payments are made directly to his Panamanian Bank Account.
6. Because David divided his business in two; onshore and offshore, there are fewer risks and more options in terms of legal issues (possible legal actions against him or his Companies). He now has deposits in banks from different jurisdictions. As a result, he does not have all his resources tied in one place and he’s able to diversify with fewer risks.
7. According to Panamanian Bank Laws, Banks can not reveal information about the beneficiary/signatory of the account to any person or authority, unless there is a legal process already established in the beneficiary home country, and this legal process is related to money laundering, financial crime or severe tax evasion.  The country will have to establish a proceeding in Panama in order to obtain information, depending if Panama has some kind of agreement with the interested country or not.

What Does “Limited Liability” Mean?

Limited liability protects investors from losing more money than they have invested in an LLC. When someone purchases stock in an LLC, they can only lose that amount of money. If the company falters, then the investors cannot be held for more money than they invested into the company. That protects the investors from significant financial loss.

How Does One Form an LLC?

LLC formation differs from jurisdiction to jurisdiction. In many jurisdictions, a company must write articles of incorporation, set guidelines, and named board members to become an LLC. The LLC formation process can take months or years for companies trying to complete all of the steps on their own. For this reason, many people choose to hire LLC formation experts to help them set up their companies. This not only helps them create the LLC faster, but also helps them avoid common mistakes that laymen make during the formation process.

What Are Offshore LLCs?

Many companies have found that they get the most benefits from offshore LLC formation. When you establish an offshore LLC, you can often avoid high taxes and unnecessary regulations. Countries like Panama offer numerous advantages to their offshore LLCs, including increased privacy and small tax burdens. Many businesses find that they can reach new levels of success through offshore LLC formations.

Actualmente Panamá ha firmado Convenios con México, España, Francia, Qataar entre otros países, la pregunta es;  ¿Afectan estos convenios la perspectiva de Panama como un país de servicios financieros mundial? ¿Qué ay de la escogencia de Panamá, por empresas o personas extranjeras para la incorporación de Sociedades Anónimas y Fundaciones de Intereses Privado? ¿Se verá perjudicada la privacidad y la seguridad de aquellos que utilizan Panama  para mover su dinero procedente de actividades legitimas, aprovechando nuestro sistema legal y financiero  para  expandir globalmente sus operaciones?

Cabe recalcar que los convenios para evitar la doble tributación fueron creados por países que poseen un sistema tributario mundial, en donde si el nacional de un país como por ejemplo España, trabaja o produce  renta en una país como Inglaterra,  ambos países,  tanto el de la fuente como el de la residencia,  se atribuirán el derecho de gravar dicha renta. 

Panamá  por otro lado posee un sistema de renta territorial, queriendo decir esto que si un  Nacional que trabaja o genere renta en un país como por ejemplo  Estados Unidos, Panama como país de residencia no gravará los ingresos de esta persona;  por el contrario si un Americano genera renta en Panama, Panama como país de la fuente tiene el derecho y la obligación de gravar esta renta,  igualmente Estados Unidos por ser el país de la residencia, es aquí donde entran a regir los Convenios de Doble Tributación y donde pueden beneficiar a individuos o empresas en casos como el mencionado anteriormente, sabiendo que siguiendo los parámetros establecidos dentro del convenio, se puede aliviar la carga fiscal en sus países de residencia mediante el otorgamiento de créditos fiscales.

¿Quienes podrán sacar provecho de estos Convenios?

Aquellas sucursales de empresas extranjeras establecidas en Panamá,  con avisos de operaciones, que declaran renta en el país y poseen ejecutivos o trabajadores que a pesar que generan renta en Panama,  no son residentes permanentes.

En mataria de  pago de dividendos, intereses, regalías;   como por ejemplo;  una sucursal en Panamá que pague dividendos a sus accionistas fuera de Panamá,  está obligada a retener un 5%;  ahora,  si los accionistas son residentes en alguno de los países con que Panamá a firmado convenio,  la matriz o el accionista,  según lo establecido en el convenio,  podrá exigir a su gobierno un crédito fiscal sobre el impuesto retenido en Panamá,  evitando así la doble imposición del tributo.

Planteado de esta manera, aquellas empresas extranjeras que desean establecerse en Panamá como sucursales de empresas en el extranjero, que generan operaciones y renta y que posean avisos de operación,  puede que salgan beneficiadas con él uso de estos convenios, esto traerá consigo un incentivo para aquellas empresas extranjeras,  para establecerse en Panamá, además se levantaran muchas restricciones financieras y legales que muchos países tienen impuestas a Panamá por ser considerado como un paraíso fiscal,  ayudando esto también a la inyección de capital extranjero.

Para mas información no dude en contactarnos.

Any legal person that may require the Notice of Operation which is referred to in Law 5 of 2007 is obligated to retain the dividend tax or participation fee of ten percent (10%) of the amounts distributed to its shareholders or partners when they are from a Panamanian source and five percent (5%) when it is income from a foreign source or export operations….”

This is the first time in Panamanian tax legislation that we see how the income of international businesses is taxed with an internal tax which is internal to Panama.

However there is an important condition that is pointed out within the law and it is that said tax on dividends paid for operations are generated from foreign income, is only demanded from the corporations that require a Notice of Operations to operate.

The Notice of Operations is demanded from companies that have a commercial office in Panama, so that Panamanian corporations that don’t have offices within Panama and that don’t carry out businesses within the national territory are not obliged to make the retention mentioned earlier.

In spite of what was mentioned a priori this law maintains the validity of the principal of non-payment of any type of taxes to Panamanian authorities for the use of Panamanian Corporations when carrying out business outside of Panama exclusively, so the offshore activity in itself is not affected yet, nor is the distribution of the dividends that are a product from this activity.

Locally, the main advantage of corporations is that the shareholders are excluded from the personal responsibilities in the obligations of the company, maintaining their right to participation of the profits that the business may generate, but their largest advantage is observed in its use for international businesses, since Panama’s fiscal regime turns them in to excellent means for administration, with clear advantages in comparison to other instruments used in the business world.

Some of the main advantages offered by Panama Corporations as international commercial instruments are:

1. Fast incorporation without the need for the shareholders to be present
2. Competitive creation costs and yearly fees
3. They do not require the immediate payment of the declared capital
4. The Panama territorial tax regime makes offshore activities of Panama Corporations exempt from paying taxes.
5. The shareholders maintain absolute control of the corporation through shareholders meetings.
6. The registry of Shares are kept in  the private documents maintaining the corporate veil
7. The offshore activities of the company need not be declared, nor do they require the presentation of fiscal statements in Panama.

As we can see, due to its ease of management, its administrative versatility and the legal security of a legislation that specializes in corporate matters and that has a low tax imposition which grant corporations a real degree of security for its shareholders as well as third parties that make commercial and financial transactions with Panamanian Corporations.

Using a Panamanian Corporation to administer your international businesses is currently the best decision that investors can make to protect their investment and it is the model which is recommended by the most recognized financial specialists of today.

Myth #1: Offshore Accounts Are Illegal

Perhaps the most persistent offshore banking myths are those that question the legality of using offshore accounts. Most of the time, this misperception comes from movies and television shows. The truth is that offshore accounts are perfectly legal as long as you use them properly. For instance, an offshore account can help you pay fewer taxes, but your country of residence will still require you to pay some taxes.

Myth #2: Offshore Accounts Aren’t Safe

Other offshore banking myths question whether offshore accounts are safe. There are some cautionary tales about people losing all of their money because their offshore accounts suddenly disappeared. This, however, only happens in countries with poor legal systems. When you choose offshore accounts in stable countries like Panama, you don’t have to worry about the safety of your assets. In fact, you might find that the Republic of Panama has a system that is more stable than your own country’s.

Myth #3: Offshore Accounts Are Only for Wealthy People

Offshore accounts are useful for lots of people, not just those who are wealthy. You wouldn’t want to spend the time and money establishing an offshore account for just a couple thousand dollars, but many people find that they can benefit from opening an offshore account that protects their assets from lawsuits  and invasions of privacy.

The Panama Canal has had a significant influence on how the Republic of Panama approaches business regulations. As a truly international country that deals with organizations all over the world, Panama created loose regulations that would let offshore businesses perform as they saw fit. Since the country earns most of its GDP from the canal tolls, it simply made sense for Panama’s government to open its doors to more businesses.

Today, the Republic of Panama has the strongest government and economy of any country in Central America. The country’s stability means that businesses and individuals do not have to worry about rogue governments overthrowing the current regime. The Republic of Panama even uses the U.S. Dollar further ensuring that the economy and government remains stable.

Many individuals and organizations around the world have found that offshore services in Panama give them access to business strategies that help them protect their assets and privacy. Since the Republic of Panama allows offshore companies to operate without many regulations, organizations have found that they are more successful when they incorporate within Panama rather than their countries of residence.

 La notoriedad de Panamá en estas áreas,  trae como consecuencias que personas y compañías alrededor del mundo necesiten servicios de abogados panameños que tengan experiencia en este ámbito, y en como las leyes panameñas se entrelazan  con las leyes de sus países de residencia.

 La elección de una firma de abogados en Panamá.

 Al escoger una firma de abogados en Panamá, usted va a necesitar asegurarse que esté escogiendo una firma con amplia experiencia  no solo trabajando con el sistema legal panameño, sino que también tener una familiaridad con los sistemas legales de los Estados Unidos, Europa, Asia entre otros.

 Esta es una de las razones por la cual contratar abogados panameños que han trabajado con clientes de su país de residencia es aconsejable. Es muy probable que abogados panameños que han trabajado con otras personas de su país,  comprendan cómo interactúan ambos sistemas legales.

 Comunicarse con su Abogado en Panamá.

 También es importante que usted escoja abogados en Panamá con los cuales usted se pueda comunicar de manera clara y confidencial y que estén su disposición para asesorarle cuando usted lo necesita.  El tipo de atención que le brinde sus abogados en muy importante ya que algunas firmas muy grandes pueden no brindarle una atención  personalizada.

 Obtener los Servicios que usted Necesita de su abogado en Panamá.

 Cuando usted contrate a abogados en Panamá, usted deberá de investigar qué tipo de servicios proporcionan. Muchas compañías que alegan ofrecer “servicios offshore” realmente no son firmas de abogados establecidas en Panamá y no tienen la capacidad de resolverle al cliente de manera clara, segura y rápida.

 Escoger Abogados en Panamá establecidos, serios, con idoneidad para ejercer la profesión en Panamá como Delvalle & Delvalle es recomendable.

 ¿Qué es una Sociedad Anónima Offshore?

 Una sociedad anónima offshore es simplemente una organización que ha sido incorporada fuera de su país de residencia. Por ejemplo si su negocio tiene sede de operaciones en Croacia, usted podría establecer una sociedad offshore en países tales como Nueva Zelanda, Suiza, Panamá y otros países similares que posen características jurídicas y de impuestos que sean beneficiosas.

A diferencia de otras legislaciones una sociedad anónima panameña puede ser utilizada de manera offshore, así como también para hacer negocios dentro de Panamá.

 La forma en que una sociedad anónima offshore opera depende mucho de donde usted decida incorporarla. En las sociedades anónimas offshore en Panamá, loa accionistas solo  son responsables por la cantidad que invirtieron en dicha sociedad. Esto los protege de pérdidas significativas que pueden resultar de fracasos empresariales, demandas legales, o eventos imprevistos.

 ¿Cuál es el Beneficios de Establece una Sociedad Anónima Offshore en Panamá?

 Muchas personas o empresas escogen establecer una sociedad anónima offshore en Panamá

debido a que es un país de servicio internacional. Si su sociedad offshore está incorporada en los Estados Unidos, por ejemplo, a usted no se le permitirá hacer negocios con algunos países, tales como Cuba. Cuando usted posee una sociedad offshore, esos reglamentos no aplican, de modo que usted podrá tomar decisiones de negocios que puedan beneficiar su empresa en el mercado global.

 El tener una sociedad anónima offshore también puede ayudarle a ahorrar dinero. Típicamente las compañías en el extranjero pagan menos impuestos que las que están incorporadas en el país de residencia. El pagar menos impuestos quiere decir que usted podrá re-invertir las ganancias de su compañía o quedarse con un margen de ganancia mayor.

 Adicionalmente, las sociedades offshore ofrecen un nivel considerable de privacidad, especialmente cuando están establecidas en países como Panamá y Belice, que tienen leyes de privacidad muy estrictas. Cuando usted establece una sociedad anónima offshore en Panamá, usted puede proteger sus inversiones de terceras personas,  manteniendo siempre los nombres de los accionistas o verdaderos dueños de la sociedad completamente fuera de los registros.

Esto ofrece un nivel de privacidad que no se encuentra en muchas jurisdicciones.

Constituir una Sociedad Anónima Offshore en Panamá.

 Si usted decide constituir una sociedad anónima offshore,  Panamá es la opción indicada para su negocio.

La asistencia de una firma de abogados para esto es indispensable; Delvalle & Delvalle, posee años de experiencia trabajando con clientes extranjeros, ofrecemos un rango de servicios que pueden ayudarle a establecer su compañía de manera rápidamente y segura.

Choosing a Country for Your Offshore Account
Before creating an offshore account, you will have to decide which country you want it located in. In today’s global economy, there are numerous options for you to choose from. This is both a blessing and a curse for those who want to make sure they create their offshore accounts in the absolute best locations. Just because a country gives you the option of setting up an offshore account does not necessarily mean that you should choose to open one there. Countries with unstable governments or financial systems are risky bets that could cost you everything in your account.

It’s best to choose a country like Panama, which has a government and financial system based on those used in the United States. Panama has a stable economy that uses the US Dollar as its main currency. Since it’s an important hub for companies moving products from the West and East Coasts, there is little chance that the economic condition will degrade significantly in the near future.

Setting Up an Offshore Account in Panama
Setting up an offshore account in Panama is relatively easy, but you’ll need to know the laws and regulations that pertain to this procedure. This simple procedure often becomes difficult for people who live in other countries. If you, for instance, live in Europe, then it could be hard for you to oversee the setup procedure. Plus, you could need to travel just to sign basic papers authorizing the account.

Legal Assistance for Creating an Offshore Account
When hiring a law firm, be sure to choose one that has significant experience with offshore accounts, incorporation, and similar subjects. One of the most experienced choices in Panama is Delvalle and Delvalle Attorneys at Law. This is a useful firm for offshore accounts because they work with a large number of clients all over the world. They understand how Panamanian law interacts with the laws of your home country, and they know how an offshore account can benefit you. Plus, they have lawyers and employees who speak a variety of languages. This makes it possible for you to create an offshore account in Panama even if you don’t speak Spanish.