| Panama remains a top choice for seeking secure locations for offshore protection of assets. Panama is a rapid growing economy and international business center. It is the fourth largest economy in the Central America. The various factors like geographic, political and legal make Panama a dream destination for entrepreneurs.
The factors which make Panama a dream destination to invest money are listed below:
• Stable legislative environment.
• Developed business infrastructure.
• Stable economy and currency.
• Fully fledged tax haven.
• Language compatibility.
• Stable Government and political situation. The country should be safe to visit.
Conditions on Tax matters
In these changing political times, for those seeking secure locations for offshore protection of assets, Panama remains a top choice. In G-20 meeting, Minister of Commerce and Industry, made clear that government would only go so far in exchanging tax information.
The pre-conditions that were laid down by the minister under which Panama would exchange tax information are as follows:
1) The privacy of persons will not be disclosed and guaranteed against undue interference.
2) There shall be no undue triangulation of information furnished among nations.
3) There shall be no automatic exchange of information.
4) Any exchange of information shall be done based on individual requests supported by a specific and justified principle or law.
5) There shall be a reasonable transitional period with respect to any measure that must be implemented and that has an impact in the international services platform offered by the Republic of Panama, it being understood that the application of any measure shall occur at the same time as similar measures applied in each and every one of the states that are members or not of the OECD and that Panama considers to be competitors in the provision of international services.
To set up a Panama Company your first consideration is to decide what type of business structure to use. There are 3 normal business entities here in Panama:
Firstly, Sole Proprietorship where you and your spouse & family operate a business as sole owners.
Secondly, Corporation, where you register with the government as a company issuing stocks, having a Board of Directors and corporate officers.
Thirdly, Partnership, in which two or more persons are involved in running the business.
While a sole proprietorship can be an oral agreement between close family members, the other two entities need the assistance of a Panamanian lawyer. That's because legal documents need to be prepared forming a Partnership or Corporation. If they are wrongly prepared, they will be legally null and void causing a business legal nightmare for its members. |
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