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Panamanian financial services corporation
This have proven particularly popular for those looking to set up offshore financial services companies. A license from the Ministry of Commerce can be obtained which can allow the company to provide such financial services as Payment Processing, Factoring, Leasing, Precious Metals Trading, Bill collecting and related services, Debit & Credit Cards, Trading in Gold, Silver, Platinum plus other activities which can be added on request. The company can further engage in any lawful enterprise, but the license is specific to the activities listed above. The most important activity for most clients is the Payment Processing. With this license, the company can demonstrate to any bank or other institutions and authorities, that the company is authorized to manage third party funds in its accounts. Many banks these days require that a company can demonstrate origin of funds and beneficial ownership. A company with third party funds in its account and no government issued license to show that demonstrates that it is authorized to hold and process such funds, will risk having its accounts frozen. This entity has proven indispensable for use in conjunction with licensed offshore bank entities.
These companies can work very effectively with Swedish Credit Unions and New Zealand Financial Companies, both as a way to outsource services offshore for tax purposes as well as to provide additional services to credit union members that the Swedish finansinspektionen may have an issue with. The Panama company can simply be contracted by the Sweden CU or New Zealand Offshore Financial Company to provide payment processing and other services, thereby accumulating profits in tax free Panama rather than in high tax Sweden or New Zealand.
Main Advantages:
Registered in Panama, a established international banking center with more than 100 banks. The entity is tax exempt on any income derived from activities outside Panama. The license is readily available within about two weeks. A certified English translation with apostille is also included alongside the original Spanish original.
Main Disadvantages:
Not a financial institution as such. This company should mainly be used for payment processing, usally for a financial entity registered in another jurisdiction. These licenses still do not allow the company to engage in securities (brokerage or investment fund), savings and loan (financiera) or fiduciary (trust company) services which are regulated differently and all require a different type of license with minimum capitalization (usually $500,000) and public audit requirements. The Panamanian government is very serious about this.