Panama’s Corporation Law 32 of 1927 (“the Panama Corporation Law”), is based on the Delaware Business Corporation Law of 1926. Unlike the laws of many offshore jurisdictions, there is no difference between domestic and offshore companies in Panama. All corporations pay taxes only on income derived from Panama.

• Three directors are required (can be an individual or a corporate), they must fill the following positions – President, Treasurer and Secretary.
• Two subscriber shareholders required but only one shareholder required post incorporation – can be corporate
• Shareholder(s) and director(s) may be the same
• No requirement for local shareholder(s) and director(s) for Panamanian Companies
• Secretary required (see above)

• The Panama incorporation documents carry the names of the subscriber shareholders and directors. Only directors names appear on the public record.
• Shareholder(s) and director(s) nominee services are allowed to ensure confidentiality.

• Standard share authorised share capital of US$10,000 divided into 10,000 shares of US$1 each
• No paid-in capital required
• Shares may be issued with or withou par value
• At least one share must be issued
• Bearer shares are permitted

Incomes generated by a Panamanian Corporation outside of Panama are tax exempted.

• There are no reporting requirements for non-resident Panamanian companies
• A Shareholders’ Register must be kept, it need not be held in Panama

• Meetings of shareholder(s) and/or director(s) are not required.
• If a meeting is held it need not be in Panama and participants can attend by telephone.

A Panama Corporation can carry out any legal business and/or investment activity worldwide, they may not offer bank, insurance or trust services without prior authorization from the Panama Financial Services Commission.

Generally Panama Corporation´s can do business with Panama residents or corporations but will be taxed on any profit.

• First year government filing fees
• Certificate of Incorporation
• Memorandum and Articles of Association
• Letter of appointment of first director
• Nominee shareholder details (if required)
• Declaration of Trust from the nominee shareholder (if a nominee shareholder is required).
• Minutes of the first meeting of the founders
• Share Certificates
• Register of Shareholders
• Register of Directors
• Registered agent services, (first year)
• Registered office, (first year)
• International express delivery by FedEx or DHL

The following names may not be used without a licence or special permission:
Bank, Building Society, Savings, Insurance, Assurance, Re-Insurance, Fund Management, Investment Fund, Trust or their foreign language equivalent.
All Panamanian corporations must end with the suffix “Corporation”, “Incorporate”, “Sociedad Anonima”, “Limited” or the abbreviations “Corp”. “Inc” or “S.A” or “Ltd”.