For those businessmen and investors who are interested in incorporating an offshore corporation there are many destinations to choose from. Of course, not every offshore jurisdiction is subject to the same tax and investment laws governing income derived offshore so it is of tantamount importance that you seek out the professional advice of a licensed attorney prior to making an offshore corporation formation or investment decisions.



When it comes time to make an actual decision about where to incorporate one particular limitation should be kept in mind. Can the company you are forming perform business anywhere or are there restrictions as to what it can and can not do? A company formed in Panama has the ability to conduct business both locally and abroad which makes it a much more desirable instrument when compared to other jurisdictions that do not allow offshore corporations incorporated there to conduct business locally. Kind of makes you wonder how good these IBC's are if the country issuing the business license won't let the company conduct business in it's own country. That problem doesn't exist with a Panama corporation.

Another caveat which can help swing a business owner to incorporate in Panama is the banking situation. In Panama bank accounts can be issued for bearer share corporations and in some instances it may be possible to get these accounts without visiting Panama provided you use a Panama law firm with bank connections to help you set up the account. Panama banks provide all of the normal services associated with banking including; online banking, international wiring capability and Visa Debit cards issued in the company name. Not all banks will issue the Visa debit with the corporation name only but many will. Money transferred in and out of the account will be in the Panama corporation's name with no direct association to you if the corporation was issued in bearer share form.

Panama has another advantage over it's tax haven neighbors in the Caribbean: stable weather patterns. Panama may receive a lot of rainfall due to it's tropical climate but it does not receive hurricanes or have earthquakes. Anyone who has tried to perform a time sensitive transaction with a Caribbean based bank during a hurricane will know what I am talking about. When combined with the consistently enforced banking secrecy laws this stable weather makes Panama a preferred choice to investor's who need privacy and always on transaction capability.

It is also worth noting that the strict bank secrecy laws of Panama are enforced equally for both citizens and foreigners alike. No one is above the law and violators are punished with fines and potentially jail time. Panama's government and banks realize that presenting a united front and consistently enforced set of rules helps the country to attract more investment and keeps the money they have already accrued safely in their bank vaults.

People who use Panama as their offshore jurisdiction need not worry about having to move funds or set up shop elsewhere, the laws were there long before all of this began to take place and the country and people like them that way.

In general, when considering the formation of an offshore corporation it is intended to help in asset protection strategies and tax minimization. In this respect Panama's ability to offer anonymous corporations and then also provide these corporations with bank accounts covered by strict and enforced banking secrecy laws gives it an advantage over other similar tax havens. The country prides itself on the protection of privacy people have there. It is also one of the easiest places to set up a corporation. Many law firms can have a corporation established on your behalf in as little as three days.