According to Panama Corporate Law, Law 32 of 26th February 1927, two (2) or more persons of lawful age, of any nationality even though not domiciled in Panama, may form a corporation for any lawful purpose or purposes.
The advantages and benefits of Panama Corporations are the following:
- The Articles of Incorporations or Bylaws may be drafted in any language other than Spanish. It is only sufficient to include its authorized translation which could be performed by our offices.
- No minimum capital is required nor does the authorized capital expressed in the articles of incorporation have to be paid.
- Nominative or Bearer shares are allowed upon shareholder`s choice. However, corporations that issue bearer shares must deliver the share certificates to an authorized custodian appointed by the owner of said shares. In the event of non-compliance, the corporation may cancel the bearer shares that have been issued or replace them with nominative shares.
- No restrictions on the amount of shareholders
- Total Confidentiality in regard to the names, identity and nationality of the shareholders
- The shareholders are not responsible for the debts of the company. The liability is solely proportional to the amount owed on the share price.
- Full exemption from taxation on business activities or transactions carried outside of Panama
- Speedy incorporation process at reasonable costs.
- Annual general shareholders or director meeting is not required.
- Neither Directors nor the officers need to be shareholders.
- Shareholders and/ or directors may hold their meetings in any country and may attend such meetings by proxy.
- Directors and officers can be natural or juridical persons and do not have to be either Panamanian citizens or reside or domiciled in Panama. At no time is the physical presence of shareholders in Panama required.
- The domicile of the corporation may be in any part of the world.
- Corporations carrying out business outside Panama are not required to file annual return / financial statements or to keep their books in Panama.
- The company can keep its accounting records anywhere in the world provided it does not do business or generates no profit in Panama. In the event that the records and supporting documentation are kept in a place that is not the office of the resident agent, the legal entity shall be required to provide the following information to its resident agent:
- The physical address of the place where the accounting records and supporting documentation thereof are being kept; and
- The name of the person acting as their custodian, together with the information required to contact said person.