Setting Up an Offshore Panama E-Commerce Business

[SVP]

Setting Up an Offshore Panama E-Commerce Business
By Peter Macfarlane

The Republic of Panama has often been referred to as the "Grandmother
of All Tax Havens." Panama, in contrast to modern offshore areas, has
a territorial tax system remains true to its roots in the fiscal code
of 1916. The long-established concept of 'tax territoriality' means
that only operations carried out within Panama are taxable.

Naturally, this makes it the perfect base for setting up an
international e-commerce business. E-commerce takings from outside the
country can be electronically banked in Panama in US dollars and
remain completely tax free. Both Panamanian and international banks
offer merchant account facilities for accepting credit cards online.

Panama uses the US dollar as its national currency, and funds may be
freely transferred in and out of Panama. There have never been
currency restrictions, and the banking industry in Panama has long
flourished alongside the country's development as an international
trade hub.

For e-commerce businesses, Panama City, and surrounding areas such as
the City of Knowledge at the old Clayton air base, boasts a highly
sophisticated communications infrastructure. Combine this with a tax
and business-friendly legal and fiscal regime, and the human resources
necessary to establish an e-commerce business at half the cost of the
United States or Europe. No wonder that large IT companies like Dell
have already chosen to locate major operations in Panama.

Looking back, Panama has played a leading role in developing e-
commerce in the Latin American region. This began in August 2001, when
Panama became the first country in the region to adopt a new law
specific to electronic commerce. Both the public and private sectors
in Panama have contributed to the enactment of this new law, with the
Panamanian government also leading the way on accepting digital
filings and signatures.

The telecommunications and internet infrastructure in Panama is up
there with the best in the world, with bandwidth now available that is
competitive with what you would expect in major US cities. These state-
of-the-art telecommunications facilities and services are made
available to e-commerce businesses at very competitive rates.

In fact, five major fiber optic networks cross the isthmus of Panama,
while the capital city benefits from several fiber optic metropolitan
networks deployed as well as world class mission-critical data and
hosting centers. Offshore hosting in Panama has become quite a
business of its own in recent years, as companies from other countries
seek to take advantage of this infrastructure.

In terms of human resources, Panama has a high literacy rate, a large
supply of bilingual certified engineers, and excellent English
language skills due to the American influence.

Another advantage of Panama, of course, is that it is very 'liveable.'
It offers all the benefits of a first world city, a safe and secure
environment, and a choice of beautiful beaches or pristine rainforests
just a short drive out of the city. And with convenient direct air
connections to cities all over North and South America and the
Caribbean, if you need to travel for business or pleasure, getting in
and out of Panama is quick, cheap and convenient.

Overall, Panama is a highly attractive base for offshore e-commerce.
If you are thinking of setting up in this business, take a look at
this country!

Learn more about Panama Tax Havens and Wealth Management advice on our
website at QWealthReport.com. With over 10 years of experience
advising the wealthy on their investment strategies, Peter
Macfarlane's advice has made his clients millions.

Article Source: http://EzineArticles.com/?expert=Peter_Macfarlane