1. Offshore 101 How To Diversify Your Life, Protect Your Assets, And Live Tax-Free By Stephen Harrison MBA

2. Topics of this module What IS Offshore? Benefits This offshore haven Cost How to manage your offshore business Legal Whats involved? Where do I go from here? 3. My experience 4. What is Offshore? Definition of 'Offshore' Located or based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. 5. Why Offshore? Whats up with Spain? 6. Time to register: 30 days minimum (Forget August). Corporation Tax: 30%, (20% for profits up to 300,000 Euros, 25% for profits above this)paid quarterly. Capital Requirement :The minimum capital required is 3006. This money is put directly into the new bank account for the company. Cost: About 1,200 Additional Requirements: See next slide: 7. 1. Obtain a certification of uniqueness of proposed company name (certificacin negativa de la denominacin social) from the Mercantile Register 2. Open a bank account for the company; deposit capital in the bank and obtain a deposit certificate 3. Grant a public deed of incorporation before a public notary 4. Submit Declaracin Censal de Inicio de Actividad and obtain the Tax Identification Number (Numero de Identificacin Fiscal, NIF) from the Delegacin Provincial de la Agencia Estatal de la Administracin Tributaria 5. Obtain a tax declaration of exemption from the Direccin General de Tributos - Consejera Hacienda Comunidad 6. File the public deed of incorporation of the company for its registration with the Mercantile Registry. 7. Legalize company books 8. Submit a notification of start of operations (declaracin responsable) to a private agency authorized by the municipality (ECLU) 9. File for social security and affiliate all workers with the local general treasury of social security (Tesorera General de la Seguridad Social) 8. United Kingdom Company set-up Set-up time: 48hours Cost: 25 Capital Requirement: 0 Corporation Tax: 20% (2014 for profits less than 365,000) If your company or organisation has taxable profits of up to 1.5 million, you must pay your Corporation Tax nine months and one day after the end of your Corporation Tax accounting period. For example, if your company's accounting period ends on 31 May, your Corporation Tax payment is due on or before 1 March the following year. 9. Foreign Investors You do not need to be a UK citizen or a UK resident to incorporate You do not need to visit the UK to incorporate the company Only one person is required to incorporate a new Ltd company A UK company can be incorporated even though it does not trade in the UK Company Shareholders and Directors A private company only requires one director and one shareholder who may be an individual or corporate body. Private Limited Company - Ltd Owned by shareholders who, in the event of the business failing, are protected by the limited liability Personal assets of directors and shareholders cannot be used to pay off company debts A limited company will continue to trade irrespectively of changes in directors, secretary, management and or ownership The company may enter into legal contracts and own property 10. COSTS Company set up: 25 including Company house registration (http://www.companiesmadesimple.com/) Virtual Office London: 25 per month with mailforwarding (http://www.hoxtonmix.com/virtual-office-london-old-street/) Call Forwarding: 10 per month with an 020 London number Bank Account: No charge for set-up. Monthly fees vary (25/month typical) Lloyds, RBS recommended- usually offer free banking for 1 year. 11. Requirements: Photo ID (Passport or DNI) Proof of address Business plan with Cash flow forecast Director Requirements Every company must have at least 1 director. The director can also be the sole shareholder which means you can incorporate a single person company. All directors must be 16 years or older. Directors do not have to be UK residents (they can reside anywhere in the world). Registered Office Requirements Every company must have a registered office in the UK. It must be a physical address at which official documents can be served. Cannot be a PO Box. Is displayed on the public record. 12. PANAM This Little Offshore Haven Deserves Your Attention More Than Ever Before 13. Population The population of Panama is approximately 3.4 million, about 52% of which reside in Panama City, consisting of mainly the Mestizos (70%) and a mix of West Indians, Caucasians and Indians. The dominant religion is Roman Catholicism. Language Spanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade. Currency United States Dollar. Exchange Control None. Type of Law Based on Spanish Civil Law with many Common Law influences, particularly regarding Company Law. 14. PANAMAS ECONOMY Panamas GDP is US$30 billion. Its per-capital GDP is US$14,000. Its the second- richest country in Latin America (after Chile), and its clear and stated agenda is to double those figures in the next 10 years. Its on track to do that. Right now, Panamas is the fastest-growing economy in the Americas. The Panamanian economy is, simply, in a different league than that of any other country in this part of the world. Indeed, this countrys economy has grown every one of the past dozen years, including in 2008 and 2009. Apparently someone forgot to tell Panama about the worlds financial crisis 15. The cornerstone of Panamas ongoing and enviable growth is the Panama Canal. For the past 14 years, the Panamanians have run it successfully, impressively, profitably. Within the next two years, theyll complete the Canal expansion that theyve been hard at work engineering for the past six years. This will mean more ships, bigger ships, more crossings, bigger revenues. And its not only Canal revenues that are driving Panamas expanding economy. The ripple effect of the Canal is, like the Canal itself, big business. And, in addition to the Canal, Panama is also enjoying the proceeds from big and growing financial services and transportation industries. 16. Meantime, money is pouring into this country from all over...from elsewhere in the region, from North America, from Europe, from Russia, from China, from the Middle East... Foreign direct investment inflows into this country reached US$1.7 billion in 2009 and US$3 billion in 2011, a sizable bet by foreign companies on the future of this small country. Big companies from around the world taking advantage of Panama's open-door policies and incentive programs include Maersk Line, Halliburton, P&G, Dell, Caterpillar, Sinpopec...a total of 68 so far. 17. Thanks to all this growth, the country's unemployment rate has dropped significantly, from between 8% and 12% (depending on which set of numbers you use) to around 4% today. The three leading U.S.- based credit rating agencies all have awarded Panama investment grade status, making it part of a select group of such countries in the region. 18. MAJOR ADVANTAGES OF PANAMA COMPANY: Exemption from all local taxes, when income received outside of Panama Inexpensive annual support No requirements of a minimum paid up capital Information about shareholders and beneficial owners is not filed with the Public Registry Office and not available to the public Any individual and legal entity may become a shareholder No foreign exchange control. 19. Panama Company, ideal for: Businessmen Commerce over the Internet Consultants / Counsellors International business Holding intellectual property rights For the custody of movable and immovable property For inheritance purposes Stockbroker / forex 20. Among the most important features of the Panamanian offshore corporations: Quick registration in 24 to 48 hours. The Panamanian offshore corporations can be registered notwithstanding the nationality of its directors or shareholders. The income produced by a Panamanian offshore corporations outside the territory of the Republic of Panama is exempt of paying Income Tax in Panama. The capital of the company does not have to be paid partially or fully at the moment of incorporation. There is no obligation to file annual reports, financial statements or sworn income declarations, always that the company does not generate Panamanian sourced income. Legal entities of any country can be appointed as directors, officer or shareholder. There is no obligation to undertake annual meetings of the Board of Directors or Shareholders. The directors and shareholders can meet in person, by Proxy, phone or by any other electronic mean. 21. Three (3) directors are required, either physical persons or legal entities of any nationality. The officers (usually a President, a Secretary and a Treasurer) not necessarily have to be directors and one person can occupy one or more or all offices. The officers can be either physical persons or legal entities. The shares can be issued in nominative or bearer form. In any case, the name of the shareholder is not required to be registered at the Public Registry, so anonymity is guaranteed. The corporate books can be kept in any part of the world and can be managed by electronic files or program. A Panamanian offshore corporations can do transactions and own assets in any part of the world, without having the obligation to maintain assets in the Republic of Panama. The Panamanian offshore corporations can undertake any type of legal business activity in any part of the world. The use of the Apostle is permitted. 22. Among the most important uses of the Panamanian offshore corporations: Setting up trading and brokerage accounts for investing purposes. As a holding entity for shares, bonds, bank accounts, term deposits, investment projects or any other financial or commercial title. Owner of shares in other companies, be them Panamanian or foreign. Owner of unmovable property, such as apartments, lots, houses or any other asset, be them movable or unmovable. Manager or promoter of international commercial transactions. International lease of aircraft, vehicles, machinery, vessels and others. Instrument to receive and deliver loans in cash or commissions for products and services. Marketing and promotion of products and services. Other financial or commercial activities. 23. Offshore Structure 24. Offshore Structure Trust International Business Corporation Belize Panam Beneficiary Administrator President Directors 25. COSTS Incorporation The formation of a Panama company takes from 3 to 5 working days and it costs from about 500.00. Annual Maintenance There is an annual franchise tax levied by the government to maintain a company in good standing, amounting to US$250.00 Annual fees of the Statutory Resident Agent mentioned previously are US$150.00. Annual fees for providing nominee directors and/or officers are usually US$200.00 each. Therefore, annual maintenance charges for a Panama corporation, may range between 290.00 and 725.00, depending on the number of nominee directors and/or officers. A complete offshore structure (Trust, IBC etc) will cost more. 26. BANKING select banks that are secure; provide excellent services, as well as numerous banking facilities (e-banking, credit cards, letters of credit etc.). In addition, other important characteristics were studied before selecting a bank, such as : Political and economic stability of the country where the bank is located Bank confidentiality to preserve the privacy of our customers Financial guarantees of the bank to avoid the risk of bankruptcy Excellent reputation of the institution Wide range of financial products offered. 27. What banking facilities are available ? As a general rule the following facilities are available from the financial establishments : Multi currency accounts E banking Trading in currency, shares and other titles Interest bearing accounts Credit card and debit card Letter of Credit We point out that it is difficult for offshore companies to establish credit lines, loans or other cash facilities unless assets are deposited with a bank to serve as collateral. 28. And later. The basic Spanish Succession Tax (SST) is in bands that start at 7.65 percent, on amounts over 7,993, increasing in stages to 34 percent for amounts over 797,555 per beneficiary. 29. Don't limit your investment options to Wall Street's offerings... Stop the government from taking more of your hard- earned cash... Eliminate the risks of having all of your assets in one country, in one currency, in one legal system... Take control of your investments, your assets, and your future... Expanding your horizons abroad allows you the ultimate in personal and financial freedom and security... 30. Where do I go from here? Investigate online Decide if going offshore is right for you Speak to an expert (like Stephen ) ceo@gintsa.com www.gintsa.com (Its in Panam)