The Accountant Quits Podcast #92: Web3 Incorporation in Panama (A Legal Guide)
Web3 is global, but where you set up your company matters.
One growing hotspot is Panama.
Panama doesn’t have specific crypto laws yet, so Web3 projects don’t need special licenses. It’s unregulated, but still legal.
Plus, there’s 0% corporate tax on foreign income, making it a great place for innovation.
To break it all down, I’m joined by Edgar Young, Partner at Pacifica Legal, a firm that’s helped over 270 Web3 companies incorporate in Panama.
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Topics covered;
(0:00) Coming Up
(0:51) Episode intro
(2:35) How Pacifica Legal started
(5:53) Panama’s crypto evolution
(7:42) Tax environment in Panama
(13:17) Tax obligations for founders from Panama
(18:38) Thanks to our sponsor Octav
(20:20) Token launch setup with SPV & Foundation
(24:24) Controlling interest in subsidiaries
(26:07) How funds flow between entities
(26:56) Setup time & costs
(27:51) Sociedad Anónima vs. Foundation
(33:20) Bearer shares in Panama
(35:42) DAO setup in Panama
(38:14) DAO distributions to token holders
(39:14) Thanks to our sponsor Request Finance
(40:53) Panama v/s Cayman Foundations
(45:12) Ownerless Foundation in Panama
(47:11) Reputation risks
(50:56) Crypto-friendly banks
(55:19) Going bankless?
(57:04) Pacifica’s crypto legal services
(58:17) Onboarding process
(59:12) Filing & Compliance
(01:01:23) Final Thoughts
(01:03:14) Reach out to Edgar