Why Register an Offshore Company in Panama?

There are several capable jurisdictions to choose from when considering incorporating an offshore company.  Choosing the correct jurisidiction to form your corporation depends on the factors that are important to you and your companies' financial goals.

Making an incorrect choice can mean having your hard earned assets completely wiped out so it is important to research the top offshore destinations and retain the services of a lawyer before making any final decisions on where to incorporate.

The IBC and Other Company Types -- Get a Real Company

Several offshore jurisdictions allow for the incorporation of a special company type (that may only be used offshore from that jurisdiction) called an IBC (International Business Company).  These IBC's have the limitation that it cannot be used in the country it was formed which says a great deal about the validity of these companies.  Who can respect a company that is not allowed to operate in the country it was formed !!

Panama Has Bearer Share Corporations

While it's true that legitimate numbered bank accounts are a thing of the past, Panama has the next best thing.  A Panama bearer share company is a standard Panama company but the shares are issued in bearer form which means the person who physically holds the shares is the owner of the corporation. 

One cannot tell the company is a bearer share company simply by looking at the public records which is great for the privacy conscious.  This bearer share company can own a bank account with a visa debit card.  The debit card can be issued with only the name of the bearer share corporation on it instead of an individual person's name. 

This combination (which happens to be our most popular offshore package) provides all of the same amenities as the old numbered bank accounts.  In fact, if you really think about it, this combination is even better than a numbered bank account because to the outside observer there is no way to determine that the money being sent or received is being done so anonymously.  The wires come and go in the corporate name which is only tied to a few pieces of paper called bearer shares.

Physical Security

Panama is not subject to earthquakes & tropical storms such as hurricanes as are many offshore jurisdictions in the Carribbean.  This is a great benefit for the Panama canal and the banks alike since uninturrupted access to your money is critical. 

This writer personally knows someone who needed access to funds just as a hurricane hit an offshore jurisdiction in the Carribbean where he was banking.  The result was devastating as there was no way to get to his funds quickly and he lost out on what turned out to be a huge money making opportunity.

Panama Has Strong Banking Secrecy Laws

Panama is the favored offshore banking jurisdiction by many offshore professionals. Bank secrecy laws in Panama are among the strongest in the world.  The weakness of some jurisdiction is their uneven application of banking secrecy between locals and foreigners.  Panama protects both residents of Panama and foreigners alike.  Panama's bank secrecy laws include harsh sentences for violators including jail time if convicted.

Strong Enforcement of Banking Secrecy Laws

Culture has a lot to do with your banking secrecy on a practical level.  This writer knows of several situations where violations of bank secrecy law went unpunished / un-enforced in a few different jurisdictions.  A law is only as effective as its enforcement. 

In Panama even minor infractions of bank secrecy laws are met with harsh punishments.  To really understand this, you need to visit Panama, and see the bars on every window, the barb wire on the top of every fence.  The first time this writer visited Panama he thought, "This place must be a war zone". 

After living here for a while it became evident that these people are very law abiding and non violent.  They are just security crazy.  That is the Panamanian culture.  This culture carries into the banking system.  This is a fundamental difference.  Some offshore banking jurisdictions are setup as an attempt by the government to draw money into its country. 

Take the Bahamas for example, once the country no longer needed the offshore business, and under intense pressure from the United States, it changed its offshore banking laws causing many people to go scrambling to move their offshore funds.  Panama, on the other hand, is an offshore banking jurisdiction because that is simply the cultural norm.  This translates into  stability.  You can be sure Panama will continue to uphold its strong banking secrecy for a long time to come.