Are you interested to know which is the best offshore jurisdiction to set up an offshore company to secure your assets? This guide will help you choose the best jurisdiction for your offshore company if you are moving abroad for working or investing.
Factors considering for best offshore company jurisdiction
Selecting the right offshore company jurisdiction is an integral part of establishing an internationalized structure. Each jurisdiction is unique and different in terms of conditions and requirements. However, the jurisdiction you choose should have the following characteristics.
1. Little or no tax, including income tax, capital gain tax, gift tax, and inheritance.
2. Favorable incorporation laws which allow the selection of one director from any country.
3. Professional service, the efficient incorporation process, and investment management options protect the rights of the entity.
4. Strict privacy laws that protect you from government and public scrutiny and keeping your information secret from foreign arbitrage
5. International banking options
6. The stable currency that is not volatile and allows the use of different currencies with no capital gain
7. The secured banking system with sound economic policy
8. The economy should be open to the global market for free movement of physical and non-physical goods.
9. No political unrest in the country to ensure continuity and environmental security.
10. locals audit or reporting requirements
Best offshore Jurisdiction-Panama of course
When people ask for the best offshore company jurisdiction, it usually means which one is most secure and protects their assets. But privacy is not the only consideration, but there are also many other factors, and each jurisdiction has its characteristics. Some offer best offshore company laws while others provide quality professional services. Similarly, one jurisdiction is better for business than others; Nevis and Belize are business and client-friendly than creditor friendly. Regardless, Nevis offers maximum privacy to their clients. People consider Panama’s best offshore jurisdiction due to several advantages and benefits.
Panama has registered domiciles for more than 500,000 Panama corporations. After Hong Kong, Panama is the second most popular jurisdiction to incorporate in the world.
Panama has a formidable reputation and spotted as the world’s best offshore jurisdiction. This financial center always welcomes foreigners with a lot of other opportunities than other jurisdictions. Furthermore, it offers its clients accessible second passport opportunities, permanent residency, and citizenship in just 5000 USD.
Despite all the negativity publicly in the last few years due to Panama Papers leaks, it is possible to open an offshore bank account for a Panamanian company. But if all document requirements are met, there is no problem setting up an offshore company there.
Besides, Panama has been offering offshore company packages for decades, so there are no strict banking secrecy laws to set up an offshore company.
Another benefit of Panama Corporation is that it may act as a trust to deal with any estate planning or anything you want to do with your foreign assets. It also provides significant tax benefits according to the age and size of the estate.
The strategic location of Panama makes it one of the world’s best offshore jurisdictions. It has fast incorporation times, competitive prices, no taxation on foreign-sourced income, and flexible corporate structure.
Panama jurisdiction’s most important feature is quality professional services, gold storage, and mid-market investment management services. As compared to other banks, CDs at 3.25% are common, and loans are readily available to facilitate the real estate investment.
Benefits of Panama Offshore Company
1.No obligation to pay income tax on the income outside Panama. So zero income tax for offshore activities and operations.
2. For the following corporate activities, no income tax is imposed according to Panama tax laws.
- Invoicing the sale of goods and merchandise at a higher price than Panama through a corporation’s office based in Panama because these products will stay out of Panama.
- Distributing dividends when income is not produced in Panama.
3. Stockholders may have Panamanian nationality or foreigners.
4. Low maintenance cost, including annual corporate taxes and agent fee i.e., 550 USD.
5. The Panamanian corporation’s directors may have any nationality and reside anywhere.
6. Meetings of the Board of Directors may be held anywhere in the world via the internet.
7. An individual can be the owner of 100% of corporate stocks.
8. Capital of a Panamanian corporation obtained may be kept outside Panama
9. Incorporation of Panamanian corporations take just three days
10. The licit objectives of the Panama offshore company do not need to be explicitly expressed in the Articles of Incorporation.
11. Anonymous ownership which allows bearers to share corporations.
12. No reporting is required for Panamanian corporations, and no offshore income tax as the territorial tax system is imposed only on business activities conducted within the territory.
13. Panama does not allow “piercing the corporate veil” and keep your record confidential and private.