Belize vs Panama

[jryan54]

Hey Guys,

So my situation is that i'm looking to incorporate an offshore IBC for the purposes or running some consultancy fees through. I'm hoping in the near future to turn into a digital nomad and do consulting gigs in my field and be location independent. However, I also want some increased privacy just because the world has become a litigious place.

Anyway, I've been looking at both Belize and Panama IBC's and, given my very simple needs, I think either would fit pretty nicely.

It appears that Belize is definitely the cheaper option and only requires a single director. Whereas Panama requires three directors (would likely have to use nominees) and is a bit more expensive to setup and run.

Which is a better option in my situation and why?

Also, i'm hearing stories from the <<snippet>> guy that Belize and Seychelle companies are now finding it hard to open a bank account anywhere....any truth to that? Would that imply that Panama is the better choice?

So my major needs:
- Offshore IBC in low/no tax jurisdiction
- Privacy at a minimum of no public companies register
- Respected enough to be able to open a bank account somewhere
- Not rediculously expensive given that I will probably only run circa 60-70k a year through it.


Anyway, any help would be much appreciated.

cheers

 

[mnschwarz]

I haven't dealt with Belize but I have with Panama. Personally I would lean towards Belize. Belize has a couple decent international banks that will have no problems opening an account for a Belize IBC. Outside Belize if you're trying to further diversify, I don't know about acceptance but I'm sure you'll find a few options that will do it. If your heart is set on a particular jurisdiction or bank, contact them and ask.

Panamanian corporations would also have no problems opening a Panamanian bank account but Panamanian banks are horrible. They have been an absolute pain to deal with and have required me to physically fly in to sort out issues. Again I'm not sure about overseas acceptance of a Panamanian corporation but the same would apply as above. Panama as you noted also has the extra hassle of needing 3 directors. Once you pay for nominees it will start getting a little pricey. I used a couple friendsI trust as the other 2 directors. The secretary/director had to sign some initial incorporation documents but anything else after that I have been able to do on my own as head director & chairman. Still they are listed.

Further, after the Panama papers debacle, Panama has been trying to improve their reputation and may continue to do so. They recently added the requirement for all Panamanian corporations to keep accounting records and have them filed with the registered agent. I do my own accounting and have no tax obligation in Panama but I still need to pay an accountant to sign off on these records. In all honesty it's become a bit of a pain and I may end up shutting it down.

One extra bonus from a Panamanian corporation, depending on your citizenship, is it allows you to get permanent residency under the friendly nations visa. Which leads to a second passport in 5 years (though I'm yet to hear anyone successfully getting it).

As for other jurisdictions, Seychelles is currently my preferred for simplicity & cost. There's a few jurisdictions that will meet your requirements to be honest. It sounds like your main concern is the bank. Check out some banks you'd like to go with and ask if they accept these jurisdictions & take it from there I'd suggest.

 

[jryan54]

Thanks for your experience!

I suspect i'm going to scrub Panama off my list then based on some of those factors. I also checked and it appears they have a somewhat searchable public registry which doesn't give me much in the way of a warm feeling. Clearly, the trend for Panama is a move towards greater regulation which is good for some things but probably not something I would desire as an economic consultant. Also, the costs look like they could quickly mount up and that's something i'm looking to avoid which is another reason I scratched Hong Kong off the list.

Anyway, i'm still looking and will speak with some banks as well but you have given me an excellent start and some things to think about!

Cheers

 

[negon]

Belize works fine with Cyprus banks so Seychelles corps do. Actually I agree with @mnschwarz and would look into BZ & SC corps rather than Panama.

 

[Milky Moon]

Which CY banks cater to BZ and/or SC IBC's?

 

[jryan54]

So after having done some research I'm probably going to settle on belize for incorporation.

I've been looking at some different agents packages and just wonder about the apostille process.

I intend to get a full notarized set of documents BUT which docs should I get an apostille for...is it really only worthwhile getting incorporation certificate done?

I'm really just thinking about banks in the future.

 

[mnschwarz]

So after having done some research I'm probably going to settle on belize for incorporation.

I've been looking at some different agents packages and just wonder about the apostille process.

I intend to get a full notarized set of documents BUT which docs should I get an apostille for...is it really only worthwhile getting incorporation certificate done?

I'm really just thinking about banks in the future.

If you don't immediately need the apostille, I wouldn't bother. You'll probably find anyone requesting it in future will want it done within the last 3 or 6 months etc. I haven't been asked for an apostille yet.

 

[suzy]

I would go with a Belize corp with nominee director and shareholder to avoid my name to figurate anywhere as @mnschwarz already outlined in another thread

 

[TurnedToRobot]

OP if you are still around I would love to hear from you what company structure you setup back in the past and after you opened this thread? I want to learn about long term use of offshore company structures if possible.