Individuals may set up offshore companies and foundations for several reasons such as offshore asset protection, tax planning, privacy, investment diversification and more. Many are leveraging these benefits using offshore foundations in Panama as it is the most popular jurisdictions that offer utmost privacy and confidentiality.
A foundation is built just like a trust but with a corporate element. There are only a select number of jurisdictions that provide offshore foundations and Panama is one of them. It is important to select a jurisdiction that meets your exact needs. The foundation law of Panama is very advanced and enables a foundation to retain, protect and distribute assets or income according to the founder of the company.
In order to set up offshore foundations in Panama, it is important to have 4 main parties. They are the founder, the Council Members, the protector and the beneficiaries. The founder is accountable for the initial formation of the foundation, and Council Ministers are responsible for managing and administering the company according to the direction of the founder. The protector’s duty is to scrutinize whether Council Members are administering the foundation properly or not. And beneficiaries are those that benefit from the foundation.
One of the top reasons why individuals choose offshore foundations in Panama is the confidentiality and privacy they offer. Panama offers the best bank secrecy laws in the world with an offshore bank account and offers the best corporate secrecy laws in the world. It has no mutual legal assistance treaties for sharing of confidential banking information with other countries.
It is also a popular jurisdiction in the world for successful offshore company formations because it offers a lot of tax benefits. You will not be responsible for paying capital gains tax, estate tax, tax or insurance on corporate shares, capital stock tax, stamp tax, succession tax or inventory tax in Panama. The circulating currency here is the US Dollar and is the second largest international banking center in the world next to Switzerland. This attracts a lot of investors and businessmen to establish foundations here.
So if you are planning setting up an offshore company, think about establishing in Panama. Along with enjoying an array of benefits, you will have complete peace of mind you have chosen one of the best jurisdictions for your needs. No doubt it is a sensible business decision.
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