Some details of Best Safety Boxes:

1. Security- Our alarm systems have closed circuit surveillance and monitoring servers for 24 hours a day.  We will impose Anti-Kidnapping alarm systems, alarms with motion sensors, impact sensors, glass sensors, and silent alarms with rapid response to government and private security.   We implement the latest technology to provide security to our customers. We carry one of the best security agencies with trained and armed officers. We have fire alarms, smoke detectors, a fire extinguisher system and general insurance to cover all of our facilities.

2. Location- Panama City, Panama
San Francisco, Calle 50, Edif. PH Credicorp Planta Baja Local #2 P.O. Box 0816-06742
Phone- 507 301-0826 or 27-28

3. Box sizes: 3×5: $400, 5×5: $500, 3×10: $700, 5×10: $900, 10×10: $1250 per year. All 24 inches long

The website is: www.bestsafetyboxes.com

Hopefully the website cover´s all of your question, if not feel free to give me a call or come on by.

For another article about offshore storage solutions, follow the link below for the Q Wealth article:

http://www.qwealthreport.com/blog/the-best-safety-deposit-boxes-in-panama-city/

(If you go, please tell them you were referred by Do Business In Panama.)

The international press keeps reporting that the global banking crisis is global. That seems like truth, but they are giving you incorrect information. Although the crisis that began in the American banking sector has spread across the globe, and has hit most major banking center it has not hit the banks in Mongolia. Nor has it hit the banks in the Republic of Panama. In the case of Mongolia, there are no close ties to the global economy. This means there is no exposure to the toxic assets that flood the global system. In the case of Panama, with its close ties to the global economy, it must be “luck.”

More than 100 American banks have been closed by regulators between 1 January and 15 October 2009; another 400 banks have bad assets in excess of net assets and are teetering. They have not been closed because the FDIC is woefully underfunded and can not ensure the deposits represented by these banks. Otherwise, they would be gone. Smart Americans are looking for a safe place to put their money, and quickly.

So it appears that the Mongolian banking system is going to see huge influx of American money seeking safe haven… But let’s take a look at Panamanian “luck” first. The banks in Panama have not suffered in this crisis for precisely the same reason that Mongolian Banks have not suffered, no exposure. No exposure to the greed that permeated the global banking system; no exposure to ridiculous Ponzi schemes; no exposure to borrowers who had absolutely no ability to make good; no exposure to borrowers who had no ‘skin’ in the game.

Understand that Panama has no central bank to act as a lender of last resort.  Since there is no one to “bail them out,” Panama banks are still conservative in their approach to business. They create only safe, well-collateralized, properly documented loans. The financially deadly concepts of subprime mortgages, 10% down, 5% down or even No Money down loans, and NINJA (No Income, No Job or Assets) loans are concepts that do not exist here. Panama banks still require a 25% down payment from Panamanian residents and 30% from non-residents. They simply have not created for themselves the same types of risks that are causing the global financial problems.

That’s not to say that these good outcomes were strictly the result of market action and corporate prudence. Panama’s National Banking Commission ensures depositor safety. Monthly audits detect problems before they get out of hand.  The NBC is empowered to deal with potential problems and to direct banks actions to remedy any situations. Banking superintendent, Olegario Barrelier, told Reuters “At the moment our banks are good, very good. They are healthy, they are liquid, capital is nearly double what is required. They are being financed by local deposits and are not dependent on external financial markets.” He said the global crisis would eventually slow Panama’s economy rather than create havoc in the financial system.

Panama uses the U.S. dollar; there are no exchange controls to prevent the ready flow of monies into or out of the country; there is a stable government; the Canal and the Colon Free Trade Zone encourage free trade. Panama has a top notch telecommunications system, an excellent legal framework that allows 100% foreign owned investments, and a strategic location with access to the entire western hemisphere.

Mongolia or Panama? Panama is obviously the correct choice.

And “luck” didn’t have a thing to do with it.

The Republic of Panama is consistently near the top of the list of countries with the best access to capital. The latest Milken Institute ‘Capital Access Index” published in 2008 looked at one hundred twenty-two countries worldwide. The Researchers gathered information from seven essential elements that facilitate access to capital. These extremely smart people then used 56 different variables drawn from these sectors to generate the index. The maximum index achieved was Canada (7.90). Panama’s index was 5.56, which ranked it in 38th position, placing it ahead of all of the BRIC economies.

This result should not surprise anyone. The Republic of Panama is a great place to do business, just as it has been for decades. I live here and I have the experience of doing business here every day. It’s a wonderful experience. This is a nation that does business on an international scale and accommodates the wants and needs of international businessmen. Panama has always respected the entrepreneur and the go-getter. Great places to do business attract investors who want to do business there. I know that sentence sounds like circular logic, but self-reinforcing phenomena often seem that way.

Panama has also been consistently ranked amongst the world’s freest economies with an open door policy for foreign investment that provides important incentives to business. In 2007, Panama attracted $6.2 billion in foreign direct investment… from the U.S. alone, says the Office of U.S. Trade Representative. Enactment of Law 41 in August of 2007 has made investment in Panama an even more attractive proposition. Through the first quarter of 2008, 15 companies had taken advantage of the benefits offered under Law 41. I see no reason why this trend would not continue.

The success of Panama as a place to do business is no accident. All the key elements are here – A stable constitutional government, an economy based on the U.S. dollar, low inflation, no foreign exchange restrictions, equal treatment of foreign and local citizens, and a favorable tax system. The workforce is literate (91.9% literacy) and largely bilingual / multilingual.

Panama has Free Trade Agreements with the United States, Europe, Asia and Latin America countries, and is a member of the World Trade Organization (WTO). Panama is active in the Caribbean Basin Initiative. The Economic Commission for Latin America and the Caribbean, the Organization of American States, and the Interamerican Development Bank have given Panama positive ratings. Panamanian government bonds are consistently graded B+ or higher by Standard & Poors ratings service.

The Republic of Panama does not simply rely on its strategic location, privacy haven reputation, and low cost of living to attract foreign investment. While the various political parties have their differences, they all recognize the goose that laid the golden egg is business. The Colon Free Zone and City of Knowledge initiatives, as well as Law 41, are major efforts to ensure that corporations of all sizes will find Panama an attractive place to do business for many more years into the future.

Panama has international credibility. It’s easy to make a statement like that and then talk about all the qualities of a place in glowing terms and not really make any specific quantitative claims that can be pinned down. But the proof is on the pudding, or rather in the evidence. In the case of the Republic of Panama, it is easy to make the claim and easy to back it up.

One of the things that I think speaks volumes to this idea is the consistent inflow of foreign investment capital. In another of my articles, I discuss the details of how and why foreign capital flows into Panama. I think an investment of $6.2B (US) by U.S. companies alone in 2007 is strong proof of credibility.

Mercer Multinational Consultants reported on quality of life and personal safety in 215 cities worldwide. Panama City, the national capital, was ranked 96th, which places it above all other Central American cities. Mercer created these ranking by analyzing social, political and economic environment, health, education and transportation factors for each city.

A major consideration in making the choice to do business in Panama is quality of life. Panama City is cosmopolitan and offers excellent living conditions. Office, commercial, industrial and housing spaces are available, as are skilled, multilingual employees. Panama City is 5th in Latin America behind San Juan, Montevideo, Buenos Aires and Santiago de Chile. Panama City is first in Central America, 12 places above San Jose, Costa Rica.

With an index of 91.4, Panama City is the third safest city in Latin America, only behind San Juan, Puerto Rico and Santo Domingo, Dominican Republic according to a report by International Scope.

With an 8% increase in GDP, Panama was the leader in economic growth in Latin America during 2008. Much of this due to the fact that Panama has a US dollar-based economy, low inflation and little foreign exchange risk, an absence of exchange controls, favorable and equal tax treatment of foreign and local citizens.

Panama has a stable Constitutional government with a keen understanding of its reliance on international trade. The Economic Freedom Index for 2009, a joint publication of The Heritage Foundation and the Wall Street Journal, ranked Panama 55th of 157 countries. Citizens and expatriates alike have freedom to make their own decisions for their benefit and for the benefit of their families.

You may argue that some of these are not indications of ‘credibility’ per se, but they are certainly evidence that something special is going on here in Panama; something worthy of international attention. Something worthy of your attention.

Foreign investment is something the Panamanian government has always encouraged.    Foreign investment in Panama is easier now than it has ever been.  There is a new free trade agreement with the U.S., and a new domestic policy, Law 41 (2007), is designed specifically to reward multinational corporations, both large and small, for establishing regional headquarters here.  Now is a great time to consider the opportunities in Panama.

Many foreign investors starting a business in Panama or purchasing real estate decide to use a corporate entity as an ownership vehicle.  The specific corporate form is defined during the due diligence phase, and the corporation should be established in conjunction with the project and not as a separate consideration.  The corporate ownership vehicle offers privacy and allows flexibility in estate planning, tax management, asset protection, and representation.

Should an investor use (or form) a local Panama corporate entity, or use an existing foreign corporation? The answer is “it depends,” but in most cases, the use of a local entity creates more benefits.   If you use a foreign entity, make sure to register it in the Public Registery.  Although Law 41 has streamlined the procedures for registration of foreign entities, it could still take several weeks to complete the process.

Panamanian commercial law allows many corporate forms.  Two important forms that offer the investor structures similar to the familiar limited liability company are the “Sociedad de Responsabilidad Limitada” and the “Sociedad Anónima.”   Determining which of the many forms is the correct choice is part of your due diligence efforts, but these are the two most prevalent forms with the S.A. as the preferred vehicle.

The S.A. has many features which offer privacy.  Some of the more important features are: no requirements to disclose ownership; no restrictions on owning investments outside of Panama; no restrictions concerning ownership of shares; no residence requirements for Directors/Officers; no requirements to file annual Financial Statements; no requirement to hold annual General Meetings of Shareholders or Directors.  This feature is very important – the accounting books for the corporation can be kept in any part of the world and in any language.

Entities doing business within Panama must register with the Tax Authority.  Formal tax registration is not needed if the corporation simply holds real estate, or does not generate taxable income within the territory of Panama. “Within” means any transaction that is from a location in Panama to another location in Panama.  Anything that crosses a border is a non-taxable transaction.  Directing transactions in other countries from Panama is non-taxable.

Every corporation must reside in Panama or have a local registered agent.  There is an annual registration fee paid to maintain a valid registration at the Public Registry of Panama.  The fees and taxes are quite reasonable, but must be paid promptly. Late payment can produce penalties or cause the company to be stricken from the Register.

A corporation may adopt by-laws for the regulation of its internal affairs and procedures, but adoption is not mandatory. If by-laws are adopted, they can be registered at the discretion of the directors of the corporation.  Registration of by-laws is not mandatory, but if the directors decide to register the by-laws, any amendments to the by-laws must be registered as well. For privacy and convenience, we recommend against the registration option.

We can assist you in the formation of the correct entity, or with entity management as needs may arise.  We are based in Panama City, but it is not necessary that you come to our offices, ever, unless you want to stop in for coffee.  The usual procedure is that we act according to the information you furnish us.   You can send the information by fax, e-mail, or regular postal mail, whichever you prefer. We will organize the articles of incorporation using a standard format. Normally within 10-15 days, all the pertinent documents will be returned to you.  For immediate delivery, we also have Shelf or Ready Made Companies.

When someone thinks of Panama, the first two things that come to mind are the Canal and ‘tax haven’ – usually in that order.  Yes, there is a huge canal here.  Yes, the Republic of Panama is a ‘privacy haven.’  But, that’s NOT all there is to Panama.

There are many other advantages to doing business here.  Panama’s location made it a strategic transportation link in the Spanish Empire’s effort to ship gold and resources to Madrid.  Panama, and Panama City, were established from the very beginning for the purpose of doing business on a global scale.  That heritage remains.  And despite being a modern city, Panama City has managed to retain its charm and ease of living.

A building boom over the past few years has kept prices down.  Panama City is inexpensive when compared to other cities of the same caliber.  Don’t be fooled – inexpensive doesn’t mean that you sacrifice your quality of life.  Panama does business on an international scale and accommodates the wants and needs of international businessmen, who tend to be fast-paced.  At the same, Panama offers beautiful beaches, a temperate climate, great restaurants.  High quality downtime; a little bit of ‘la dolce vita.’  What good is working hard, and what good are wealth protection strategies, if you don’t take the time to savor the fruits of your wealth?  You have an amazing range of choices here and the freedom of choice.

The government is stable and has a new President, Ricardo Martinelli, elected on an anti-corruption platform.  Martinelli, who will be in office until 2014, is a businessman, so the pro-business attitudes will remain.  Even in the worst of times, Panama has never suppressed its citizens or instituted currency controls.  There were periods of corruption, but there has never been oppression.  Panama has its own currency, but the U.S. dollar is the business currency.

Panama has well developed international trade and banking systems.  These two sectors depend on technology.  Panama has one of the finest telecom systems outside of the U.S. or Europe.  Five major global fiber optic networks cross Panama and provide international access.  Panama City, which is overlaid with several fiber optic networks, is a world-class mission-critical data and hosting center. This business segment continues to grow as foreign companies take advantage of this infrastructure.  Panama is a gateway to Central and South American markets.

Panamanian leaders recognized that the same strategic location that made it an important water transport link also gave it a competitive advantage in air transportation and logistics.  One of the best things about doing business here is the ease and comfort of travel.  Panama City is a great place to live and I enjoy living here, but sometimes travel is necessary.

The national air carrier, Copa Airlines, flies Boeing 737’s to 40 major cities daily and was named Best Airline in Central America in 4 of the last 5 years.  Copa has an outstanding order to purchase 21 new jets over the coming years.  Over the last decade, Tocumen International Airport has been transformed through the ‘Hub of the Americas’ project.  Copa’s partner KLM-Air France flies direct from Amsterdam, complementing Iberian Airway’s daily flights from Madrid.  Tocumen Airport is a great airport if you are coming here to do business, or if you are just looking for convenient connecting flights within the region.
Undoubtedly, Panama is a great base for business and banking, and for gracious expatriate living.  And with a little planning, that gracious living, la dolce vita, can be tax free.

Corporations are always searching for great opportunities. Panama has been a great opportunity for decades; global Fortune 500 companies – Coca Cola, Sony, HSBC, Nestlé, Roche – all know this.  Where they go, others follow.  Foreign investment capital inflow continues as potential becomes reality, and reality becomes profit.

The Republic of Panama stands apart from other Latin American countries.  The Economic Liberty Index for 2007 ranks Panama 47th of 157 countries.  A major consideration in making the choice to do business in Panama is quality of life.  Panama City is cosmopolitan and offers excellent living conditions. Office, commercial, industrial and housing spaces are available, as are skilled, multilingual employees.

Some of the key attributes of Panama are: a stable government; a dollar-based economy, without currency exchange restrictions; the Canal and the Colon Free Trade Zone; an international financial center with a well-developed infrastructure including a top notch telecommunications system; an excellent legal framework that allows 100% foreign owned investments; a strategic location with access to the entire western hemisphere.

The U.S. – Panama Free Trade Agreement (2007) passed the Panamanian legislature and is awaiting U.S. approval.  Its purpose is to provide legal security for business, trade and investments between both countries, and increase opportunities available to investors from the United States.  Law 41 (2007), based on successful models in Switzerland and Singapore, was passed with the intent to ensure that Panama becomes an attractive center for multinational firms.  Benefits given to multinational companies establishing their headquarters in Panama include tax exemptions, and special labor and migration status, with simplified and streamlined visa, residence and work permit requirements.  There are already special considerations for industrial parks, call centers, and ecommerce to facilitate trade and investment.

Income tax laws permit taxation only on income generated from trade entirely within Panama.  Foreign source income, generated outside Panama, is 100% exempted. Income from the following activities is not considered domestic activity within the territory of the Republic of Panama, and is specifically exempted from taxation:

-Invoicing, from an office established in Panama.

-The resale of merchandise or products for an amount greater than had previously been invoiced against the office in Panama, provided the goods transit solely outside Panama.

-Directing transactions that are executed, completed, or effected outside Panama.

-Distributing dividends or participations from the tax exempt activities.

A corporate regional headquarters with offices and employees based in Panama does not pay any income tax, if the office merely directs operations from Panama; that is, it performs only international operations from Panamanian territory.

For manufacturing or assembly operations, the existing law for Export Processing Zones designates them as 100% tax-free areas. Both the developer and the export item will be 100% exempted from national direct and indirect taxes, duties, levies, right and charges.

It is plain to see that there are tremendous benefits to doing business in Panama.

Please be advised that due to the unfortunate death of the Ex President Guillermo Endara Galimany last night the government has decreed a day of National Mourning for Wednesday September 30, 2009. In this sense, all public and private offices and banks in Panama will be closed for business on that day.

We will be back to work on Thursday.

Estimados Clientes y Colaboradores,

Debido al sensible fallecimiento ayer en la noche de nuestro Ex Presidente Guillermo Endara Galimany el gobierno ha decretado para el día Miércoles 30 de Septiembre como un Día de Duelo Nacional. En este sentido, todas las oficinas públicas y privadas estarán cerradas durante el día de Miércoles.

Nuestras oficinas volverán a abrir el día Jueves.

Finally, a non bank safety deposit box facility for Panama City!

It seems someone has spotted an opportunity after the recent news that various Panamanian banks, including HSBC and Banvivienda, are ceasing to offer safe deposit box facilities to their clients. A new operation named ‘Best Safety Boxes’ is due to open its doors (and safes) shortly in the Plaza Credicorp Bank Panama Building on Calle 50.

Clients have been asking us for years for a non-bank operated safe deposit facility in Panama. Since this is not a bank, you will not be required to open a bank account in order to use this safe deposit box facility. The privacy and confidentiality advantages to this are substantial. Also, in the event of a systemic collapse leading to temporary closure of all banks (a so called ‘bank holiday’) one hopes that Best Safety Boxes would not be affected.

What could you do with your safe deposit box? You could store gold bullion, the bearer share certificates for your Panama Corporation, or just plain cash that you wish to keep outside the banking system.

We are not sure when Best Safety Boxes are due to open, but if you drive by the Plaza Credicorp Bank Panama building you can already see the signage indicating its imminent opening, so we hope it won’t be long. We will keep you informed.

In the meantime remember that Do Business in Panama is your go-to source for Paama Offshore Legal Services such as Corporations, Foundations and Bank Introductions.  Please feel free to contact us with any questions.