If you’re looking to establish an international e-commerce business, consider the Republic of Panama.  One of the key advantages to locating in Panama is that only income from Panamanian sources is subject to taxation under the ‘tax territoriality’ concept.  Earnings from international trade, including your e-commerce business, are not subject to tax.  Now this is all well and good, but an e-commerce business can’t survive without excellent infrastructure. Does Panama offer the infrastructure needed for you to succeed?

Yes, it does, and here’s what Panama offers.  Because of the Canal trade, Panama has well developed international trade and banking systems.  These two sectors depend on technology.  So, Panama has invested in creating what is likely the finest telecom and internet system outside of Europe and the U.S.  The “City of Knowledge” technology and business park is located at the site of the U.S. Air Force’s former Clayton air base just outside of the capital, Panama City.

Five major fiber optic networks cross Panama and provide access to international telecommunications networks.  Panama City, which is overlaid with several fiber optic metropolitan networks, has become a world class mission-critical data and hosting center. This business segment continues to grow as companies from other countries seek to take advantage of this infrastructure.  Panama is often used as a gateway to Central and South American markets.

The human and intellectual capital needed to succeed in an international e-commerce venture are available, and at half the cost of the United States or Europe.  Panama boasts a literacy rate of 91.9%, and has a large supply of bilingual professionals and certified engineers.  The official language is Spanish, but due to American influences, a large portion of the work force speaks English as well.

Panama is a leading edge thinker in developing new methods of e-commerce.  In August 2001, Panama’s government passed new legislation specific to electronic commerce and acceptance of digital filings and signatures.  Both public and private sector input were used in crafting the legislation, with the Panamanian government leading the way.

On their own, the infrastructure considerations should be enough to give anyone good reason to choose Panama as a centre for their e-commerce business.  Add in the benefits of a tax and business-friendly legal and fiscal regime, the use of the U.S. dollar as the de facto currency, no restriction on currency translations, the availability of on-line credit card acceptance and processing, and THAT is the recipe for e-commerce success!

In amongst this talk about infrastructure and technology, we have failed to discuss another huge advantage of Panama: livability. Panama City is a first world city.  Crime is very low, the climate is temperate, and you have a choice of beautiful beaches just a short drive away. The national air carrier Copa Airlines offers 144 daily departures direct to 40 major cities all over North and South America and the Caribbean.  If you need to travel, getting in and out of Panama through Tocumen International Airport is quick, cheap and convenient.

Panama is a highly attractive location for offshore business and e-commerce. If your wealth building strategy includes an e-commerce business, take a look at Panama!

We’ve recently hooked up with an excellent new supplier of Panama Virtual Office services, and we wanted to let you know about them today. This looks like an interesting opportunity for anyone involved in offshore business, especially those doing business in Panama as their chosen tax haven hub.

Panamail is an offshore service provider for international businesses and individuals seeking for mail drop and virtual office services in the Republic of Panama, including PO box, physical street address, fax and phone number with voicemail, courier receipt and forwarding and many other features.

If you have your own corporation, foundation or SRL in Panama, you need a Panama address with reliable mail forwarding. Most offshore service providers are not set up to provide this service efficiently, and the Panama Post Office does not provide PO Box service to non-residents. A Panama Virtual Office is therefore an excellent solution. In fewer then 24 hours you can start receiving mail, phone calls and faxes to your personal address and numbers in Panama. Have a look at our services section and choose the tools you need for your business or personal use in Panama.

Panamail Virtual Offices – Offshore Mail Forwarding, Voicemail and Fax Numbers for Your Business in Panama. Visit www.panamail.net and have a look at their very affordable plans for your own Virtual Office in the Republic of Panama.

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• Panama Virtual Office – Do Business in Panama
• Panama Offshore Bank Accounts
• Panama Corporations
• Buy Gold Bullion in Panama
• Panama Licensed Financial Services Corporations

One of the “hottest” topics in terms of the enquiries we receive here at Do Business in Panama is Panama Merchant Accounts. We can see why. Panama is indeed a logical choice for those interested in tax-free e-commerce, due to its proliferation of high quality offshore banks, its use of the US dollar as the national currency, and its convenient time zone and location.

In reality, however, opening a merchant account in Panama is not for every business. It involves a great deal of work and due diligence. First of all, Panama banks will only open credit card merchant accounts for Panama corporations. Then, your corporation will need some kind of verifiable presence – a brass plate outside a lawyer’s office is really not enough these days. Next, you will need a local business licence – difficult, if not impossible, to obtain for many of the enquiries we receive that are looking to set up Panama merchant facilities for businesses such as pharmaceuticals, cigarette trading, Cuban cigars, or internet gambling.

So, you ask, it is difficult – but is it impossible? First of all, it depends on your trading history. If you are a completely new business, it’s better to forget trying to work with Panama banks. We have had some success placing this kind of business with banks in Europe and the Caribbean. The other option is to use an IPSP (Internet Payment Services Provider) that specializes in high risk business. We can facilitiate such introductions, but they are only available for very serious clients who expect a turnover of at least $50,000 monthly and are prepared to pay substantial up front fees to get things set up.

The conclusion is that YES we can help you set up a Panama merchant account, or we can refer you to other offshore banks in different countries that will consider working with your business. However, it will require substantial preparation and a serious business plan that you should be ready to prepare and e-mail ahead. You should then expect to fly in for personal meetings with our lawyers, who will in turn walk you over to the banks and make sure you don’t say the wrong things!

If you are interested in discussing this matter further, please feel free to get in touch initially with our offices here in Panama City, Republic of Panama. We are located on 50th Street in the heart of the financial district.

If you are rather looking for Panama merchant services for a smaller business, instead you might like to contact our partner company Genericard Corp.