Investment and Finance

How can I prove my source of funds for a Panama company?

4/11/2024 8:00:00 AM
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Proof of source of funds is required for every financial move and also for citizenship or residency by investment processes. Why is the source of funds important? For the country register, such documents are vital to ensure the legality of the new business and, for the company owner, they provide assurance that they are entering a reliable jurisdiction. 

Beyond company documents: proof of source of funds and what they are 

One can need to prove where their money is coming from in a variety of situations which not only restricts to presenting company documents. Every time a person invests a large sum (opens a company, deposits cash in a bank, buys a property, or applies for a second citizenship), he or she will have to prove that this money was legally obtained. 

In this article, we focus on the source of funds for a company, more specifically, for a Panama entity, but the principle applies to all the situations described above. 

Moreover, in the case of a large purchase or investment, proof of funds helps confirm that the money is actually available and in a liquid form. For example, life insurance, a property deed, or stocks and bonds holdings may not be viable in several cases. 

What documents qualify as proof of funds?

Incorporation documents may require the following support to prove the person’s funds (existence and legality): payslips, bank statements, sale agreements, or tax returns. In some cases, investment statements, loan agreements, deeds of gift, and settlement agreements may be accepted too. 

The corporate environment in Panama has remained safe thanks to demanding these types of proofs among the incorporation documents or at the time of investing. It is also possible to design interesting combinations which are especially useful for those who pursue a complex structure. A Nevis trust plus a second residency or a Panama company plus a Panama foundation are only some examples.

Another aspect of the source of funds for a company is the validity of the documents and the date of issuance. Naturally, the information must be relatively fresh, hence, authorities ask for documents no older than 90 days and, in some cases, 30 days.

Contact your expert for more info

Do these requirements only apply in Panama? In general, most countries keep the same conditions when it comes to proving a person’s source of funds. Some authorities may ask for a source of funds declaration, but this document works under the same logic we’ve been detailing here. Regarding formatting, all of them are generally accepted as long as the information is legible. 

A common concern arises at the time of sending the proof of funds registration documents. The ideal situation is the one in which the agent accepts the digital versions as it reduces courier costs, however, this will depend on all the variables of the case. From the jurisdiction to the type of service, from the entity to the current regulations, these factors will determine whether you can send scanned copies of your documents. Anyway, the agent usually pre-approves the digital copies before asking for the physical counterparts. In this regard, Nevis is one of the best corporate options since Mundo can help you open a company even if you send the incorporation documents in digital format. 

Why open a company abroad?

Understanding the advantages of a foreign company can make the difference between a successful financial plan and one that is challenged by a single country’s policies. Diversification is one sacred word in the financial sphere, and this includes more than types of investments or currencies.

Taking your company to a new country can seem like a hindrance since it requires more research and attention. Registration documents and company administration must be organized and supervised remotely.

Although there is a higher degree of complexity as the process involves a different jurisdiction, the advantages are worth the effort. Corporate jurisdictions like Seychelles, the Cayman Islands, and Panama itself have been smart enough to maintain the allure of former offshore havens but with a regulatory framework that’s aligned with today’s international demands. 

In simple words, these places help you reduce costs, save taxes legally, access new markets, and operate in other currencies. 

Why choose Panama?

From these countries, Panama has a particular charm when it comes to business, opportunities, and lifestyle. 

What we like the most about Panama is that it provides 360 solutions. Besides the healthy corporate environment, of which the free zones are not a minor advantage, Panama brings everything an expat business person needs. 

It has a wide variety of residency options for those who can spare a few hundred thousand dollars and for those who earn 1,000 a month or are willing to run a company with only 23,000 USD. Naturally, each program has its secrets. If you want to know if you are eligible, please get in touch with the Mundo team and tell them about your interest in Panama. 

When it comes to asset protection, Panama has a structure that does not lag when compared with the Nevis Trust or the Liechtenstein counterpart: the Panama foundation. As with any of its kind, this entity provides asset protection by separating legal ownership from the founder. 

The banking sector thrives in a dollarized, stable economy that attracts many business people and talented professionals from all over the world. For Americans and Europeans, Panama represents a unique blend between high living standards and convenient costs. The cherry on the cake is the territorial taxation system thanks to which one can implement a healthy tax strategy 100% legally. 

Disclaimer: This article does not replace legal advice. Instead, it reflects the opinion of the editorial team based on research and previous experiences. Before making any important financial decisions make sure to consult with a professional and assess the risks and benefits. 

How can Mundo help you

Finding the right proof of source of funds for a company is easy as long as you have proper guidance. At Mundo, we have a team that can contact you with agents and experts so that you can fulfill your corporate needs. We work with jurisdictions like Nevis, Panama, Seychelles, Cayman Islands, Vanuatu, Turkey, and the five CBI Caribbean countries. 

Mundo is committed to the libertarian philosophy and believes in self-development as the main goal of a human being. In this sense, we are ready to help you cover the financial aspects of your plan.

Contact us now!

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