Panama

General
 
Type of Company                                   Non-Resident
 
Political Stability                               Fair
 
Standard Authorized Capital                       No
 
Tax on Offshore Profits                           Nil
 
Corporate Requirements
 
Local Registered Office and Registered Agent Required   Yes
 
Minimum Number of Directors/Managers               3
 
Local Directors Required                           No
 
Corporate Directors Permitted                      Yes
 
Minimum Number of Shareholders/Members             1
 
Local Shareholders Required                        No
 
Corporate Shareholders Permitted                   Yes
 
Company Secretary Required                         Yes
 
Bearer Shares Allowed                              Yes, but not available
 
Annual Requirements
 
Filing of Annual Return                            No
 
Submit Audited Accounts                            No
 
Min. Annual Tax / License Fees                     US$250
 
Shelf Companies Available                          No
 

 
GENERAL INFORMATION

INTRODUCTION
The Republic of Panama occupies an area of 77,082 square kilometers and is situated between Costa Rica in Central America and Columbia in South America with coastlines on both the Pacific and Atlantic Oceans. Its capital, Panama City, is on the Pacific coast at the entrance of the Panama Canal. Panama was a Spanish colony until 1821. In 1903, Panama broke an alliance with Colombia and became an independent republic. The population of Panama is approximately 2.4 million, of which 700,000 live in Panama City.

LANGUAGE
The official and spoken language is Spanish, although English is also spoken widely in urban areas and is used daily in commerce and international trade.

TYPE OF LAW
Panamanian law is based on the Spanish Civil Code, although the companylaw has been taken from the corporation law of Delaware in the USA.

COMPANY INFORMATION

TYPE OF COMPANY FOR INTERNATIONAL TRADE AND INVESTMENT
Limited Liability Companies and Limited Partnerships

TIME TO INCORPORATE
One Day, but allow ten working days for receipt of documentation.

RESTRICTIONS ON NAME AND ACTIVITY
Names must end with one of the following words, or their relevant abbreviations - Limited, Corporation, Incorporated, Societe Anonyme, Sociedad Anonima. Names may be expressed in any language using the Latin alphabet. The Registrar may request a Spanish or English translation.

The following names and their associated activities cannot be used: Assurance, Bank, Building Society, Savings, Loans, Insurance, Reinsurance, Fund, Royal, Trust, Chamber of Commerce, University Co-operative and Municipal.

CLASSES OF SHARES PERMITTED
Registered shares, bearer shares, shares of no par value, preference shares and non-voting shares.

DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES          
No.

LICENCE FEES
A Non-Resident Company pays an annual license fee of US$250.

FINANCIAL STATEMENT REQUIREMENTS
There is no requirement to file annual audited accounts with the authorities.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.