Panamanian Financial Services Corporation
This is a Panama registered stock corporation holding a license from the Ministry of Commerce & Industry to
engage in services such as: Payment Processing, Factoring, Leasing, Precious Metals Trading, Bill collecting
and related services.
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.
It can also be used to limit or eliminate the tax liabiliy in the Swedish Credit Unions.
The Panama company can simply be contracted by the Swedish CU to provide payment processing
and other services, thereby accumulating profits in tax free Panama rather than in high tax Sweden.
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.
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. The entity should never advertise services such as lending and
deposit taking. The Panamanian government is very serious about this.
Formation cost:
Total cost including all government and legal fees for license: USD6,500.00.
Add costs for company around $1500 depending on the services needed.
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