Privacy in corporations in Panama

If you are thinking of opening your own company offshore, you should definitely take into account the countless advantages of corporations in Panama, mainly in terms of economy, tax and personal protection of each of the shareholders. Keep in mind that these types of organizations in Panama are accompanied by several legal benefits that are not available in the country of origin, especially in terms of data privacy and private investments.

This issue has been highly controversial in recent years, mainly due to the problem of the "Panama Papers", where several public figures and companies were accused of carrying out money laundering and tax fraud in their States of origin through an intermediary. In Panama; We clarify that our nation's policies are not focused on promoting this type of activity and that the Panamanian government is in charge of ensuring that these unfair acts are not committed.

However, the policy that defines that companies in the modality of offshore company in Panama they have the right to privacy regarding investments and personal identities, as long as this information is not disclosed to the general public or among financial and state institutions in order to guarantee the maximum well-being of investors; hence the name anonymous.

In this article, as the best lawyers in panama, we review the main characteristics of corporations in the State of Panama, emphasizing the importance and pillars that support privacy in companies that want to do business in our country, as the cradle of international trade.

What is considered a Panamanian anonymous offshore company?

Offshore corporations are those that are established in a territory outside the origin or residence of the investors, this in order to take advantage of different tax benefits offered by some companies to reduce taxes, acquire more credibility in the international market or expand more easily globally.

In this way, if in your country of origin they impose very high and unfair tax rates, but you do not want to lose your local customer base, you can open an office in Panama and continue trading normally.

In the specific case of Panama, companies classified as anonymous are not required to answer for anything more than the amount they invested in the company, they will not have to declare the company's external income, preventing losses caused by business failures, lawsuits or other situations that force him to withdraw the capital.

This fundamental principle ensures that corporations in Panama have a right to the privacy of their assets, given that no extra asset or investment will be published or linked to the identity of the investor, thus allowing their fundamental rights to be protected, public speculation avoided and linkage to any case prevented of business fraud.

Also, this guarantees that you will be able to carry out procedures with other countries regardless of your nationality, for example, if your company is based in the United States, it will have limited trade to nations like Cuba, but if the company is registered in Panama, there will be no limitation, even if the investors come from different parts of the world, since their identities and capital remain unknown to all types of individuals or entities.

Likewise, the fact that your investments remain private guarantees that you will pay less taxes, since the tax base is the capital contributed to the company and this limit is not exceeded, allowing you a wider profit margin that you can reinvest in the company. or simply take advantage of a higher percentage of money to have a better quality of life.

At the security level, having a corporation in Panama guarantees protection before the public, since your records as owner of the company or investor remain anonymous, guaranteeing that your physical and economic integrity is maintained.

How do transparency measures affect the privacy of companies?

As we have mentioned before, privacy measures have generated several problems, which is why the Panamanian government has been forced to create different transparency laws in order to prevent camouflaged fraud and money laundering. In this sense, with Law 129 of March 17, 2020, it establishes that the Superintendence of Non-Financial Affairs will supervise the registration system of tax beneficiaries, with the commitment that the information will not be disclosed to the public or tertiary entities.

In this way, it is guaranteed that control of transactions is maintained with an institutional entity that will not disclose private information, avoiding security risks and financial instability.

These are the advantages of corporations in Panama In terms of privacy, if you want to know more, we invite you to contact our lawyers through the numbers +507 835 5810 and +507 774 0126 or WhatsApp +507 6430 7051.