Hello, Does anyone have any experience with setting up a corporation in Panama? How complicated is the whole procedure? I'm thinking of it and would be interested in any thoughts, advice, recommendations. Thank you
what is the purpose? If you are planning to hold a lot of money for trading purposes, you still need to follow (if you are USA) certain rules... Like $10K+ held outside of the country of your money
If you mean an offshore company, there are plenty of firms that can do that for you. The two I have experience with is Ocra Worldwide and Equity Trust - slightly pricier than the single office private firms, but they have locations globally, which helps alot in what I do. Incorporation will set you back about USD 2,000, with USD 1,500 in annual maintanence. Any reason why you chose Panama? The two less cumbersome, yet reputable, jurisdictions are BVI and Seychelles - no tax, no reporting requirement, low govt fee. BVI has better legal framework when it comes to finance, hence why most of the funds are incorporated there. I believe if you're a US citizen, there are some legal issues to consider. One things for sure, you wont be able to hide your capital gains there if that's what you're thinking. You can thank your government for that - the IRS will reach you all the way to the moon. I've always wondered if some of the big hitting day-traders, with incomes in the 6 digits have considered giving up their U.S. residency to automatically increase their returns by 100%. I know I certainly wouldnt be trading at all if I have to pay 50% in taxes!
Which one of these places has no corporate tax and no dividend tax for non resident owner ? And which one has the lightest maintenance requirement (no need to pay salary to local directors and no other taxes) ? Assuming you run a business under that corporation and reside in a counbtry with no income tax, no cap gain tax, such as Monaco and you are not a US citizen, could you lower your tax rate to zero ? What would be the turnover or income that would make such operation worthwhile vs just living in Monaco (20% corporate tax) ?
what do you mean about :" Like $10K+ held outside of the country of your money"? Is this an illegal tax?