As governments in many countries have undermined their own privacy laws, people are searching to find privacy and security for their information, both personal and corporate. While asset protection is currently the popular topic in both corporate and private sectors, the trust structures that many had formerly used have either been weakened or dramatically changed. In light of these invasions of privacy, offshore corporations have become better options in many countries and the best country for both offshore corporations and asset protection is Panama.

Panama is currently the second largest banking center, behind Switzerland, and is also the number one retirement haven in the world. Panama does not tax offshore derived income, capital gains and the like. Tax violations in Panama are civil offenses, none are criminal and Panama has no tax treaties with any country which means that tax problems in other countries cannot be pursued in Panama. Panama City attorneys are actually required to form all corporations; in turn, the attorney / client privilege protects the privacy of over 400,000 asset protection corporations here. Panama has enacted numerous laws to secure privacy, bank secrecy and asset protection. Offshore corporations in Panama can be used to as part of a structure that will keep both the assets and identity of those involved secure.

Setting up an asset protection corporation in Panama like an international business corporation is only part of the plan for securing assets and identity; when combined with a Panama foundation, Panama banking and a Panama attorney, an offshore corporation can provide the ultimate in asset and identity protection.

• Panama foundation - This entity is similar to a trust, but much better. Unlike a trust, a foundation is not considered a "legal person" meaning that it does not have the responsibilities of a person. All of its information, including plans, holdings, directors and beneficiaries can be kept secret. In addition, if its sources of income are foreign, this information doesn't have to be reported either. Because of this, a Panama foundation offers virtual anonymity in both identities of those involved and the sources of income and holdings of the foundation. A Panama foundation is designed to hold assets for its beneficiaries; because of this it can not actually perform any business functions. It can, however, own corporations and the direct the business concerns of those corporations. When combined with an asset protection corporation like an international business corporation, they are very beneficial for protecting assets and identities.
• Panama banking - The banking district of Panama City is the second largest in the world, trailing only Switzerland. The government of Panama has enacted strict privacy laws pertaining to identity protection and these laws have helped Panama banking to flourish; these privacy laws have also helped to protect the identities. Because the privacy regulations are so strict, using Panama banking adds another layer of protection for those who have it.
• Panama attorney - Panama attorneys are required for starting foundations and asset protection corporations; by design, this is also an excellent privacy mechanism. Panama has strong laws protecting attorney-client privilege so all information used to start an offshore corporation as well as any additional conversations, meetings, etc. are held in the strictest confidence. All of this helps to make the details of your off shore corporation more secure.

The best known asset protection corporations in Panama are anonymous corporations called "sociedad anonima"; these international business corporations are also known as Panama bearer share corporations. These corporations have no registry or database into which are entered the owners of the corporation. Ownership is demonstrated through the printed stock certificate called bearer shares. These paper shares are the only record of ownership within the corporation. With a Panama bearer share corporation wires transfers of money moving through the wire system are not associated with any natural persons for more privacy. Panama bearer share corporations can own real estate anywhere in the world under Panama law and can do business just like any other corporation.

Panama has become the perfect foreign location for investors, financiers and businessmen to establish offshore corporations and conduct transactions. Panama does not tax foreign-source income; dividends also are not included as income subject to tax. Due to its legal business structure, geographical location, political stability and characteristics of its economy, Panama has become a crucial location for doing business; perhaps one of the most important in the world. Panama has developed excellent international transportation and communication systems and the United States dollar has been the currency of legal tender for more than one hundred years.

Panama has taken numerous steps to improve its economy and encourage foreign investment. In addition to Panama foundations, most Panamanian and foreign investors choose to form corporations. There are no exchange regulations, currency problems or reporting requirements and there are no limits on monetary transfers to and from the country are imposed.

Some of the benefits of an offshore corporation in Panama are:

• No reporting requirements.
• It is possible to directly control a business while maintaining anonymity.
• Once it is registered, it is not required to file any changes to ownership schedule.
• It is not required to maintain a legal address within Panama.
• There are no citizenship or residency requirements or restrictions with respect to owners, directors and officers.
• Meetings of stockholders and directors can be held anywhere in the world.
• Paper shares of corporate ownership can be issued. This is the ultimate protection of the corporation owner's identity and creates total privacy.
• Income Tax Reduction
• No inheritance, succession or gift taxes
• A hedge against inflation
• Reduction in legal liabilities in divorce or litigation
• Freedom from currency exchange control
• Easy access to North American and European capital markets
• No international trade tariffs
• No annual tax return requirements for all foreign-derived income

International business corporations are an excellent part of a business plan for asset and identity protection.

By combining a Panama bearer share corporation, a Panama foundation, offshore Panama banking and the use of a Panama attorney, it is possible to realize the strongest asset and identity protection available in the world.