Panama Legal just posted a new segment on their website dedicated to offshore corporate agent scams. The article warns of unprofessional offshore service providers offering limited and often lacking service at a seemingly low price. Panama Law compare this practice to the age old auto dealers scam where they would publish an absurdly low price in the paper just to attract customers. When customers would inquire about the car they would discover the car lacked so many standard features it was practically not fit for sale. This of course didn't matter any more since the auto dealer got what he wanted - the customer's attention and can now sell him another car for a much higher price.
But Panama Legal warns not only of scams in which the potential consumer ends up just paying a higher price but also of cases where the service provided to him does not guarantee the results required when seeking an offshore solution. Most companies dealing in these kind of shady pricing policies do not represent a local law firm and either provide a limited service (since most of the procedures for setting up an offshore entity require an attorney) or outsource the tasks requiring an attorney.
Besides the problems of trusting your money and your business with companies who deal in these deceptive pricing policies, the article also states potential flaws regarding the confidentiality of your accounts. Obviously when dealing with a law firm, any correspondence and information in your file remains confidential and enjoys attorney-client privileges. While this is true for the outsourced law firm hired by the company offering the offshore services, this is not the case for the agent company itself making them the weakest link in the chain.
