Panama company

Offshore trading companies are a proven efficient vehicle to expatriate capital and eliminate exchange controls restrictions through over-invoicing or under invoicing export/import transactions. If an offshore trading company were to procure products from one country, and then sell them to another country, the profits arising our of the transaction may be accumulated in the offshore company, free from taxation in the offshore centre. Another common use of an offshore trading company is for bulk purchasing. Such a structure is typically established by a group of associated or unrelated companies to benefit from economics of scale and reduced administrative costs, plus significant tax savings.

Significant benefits achieved by this arrangement, include receipt of bulk buying discounts and accumulation in a tax-free area of the net mark-up on resales to the manufacturing units. Additionally, factoring trading debts of a company in a high tax jurisdiction through an offshore company established in a low tax jurisdiction may assist in transferring funds to the low tax jurisdiction. Panama company provide management to several offshore factoring and international trading companies engaged in trading debts and re-invoicing operations.