Panama
The Republic of Panama is located between Costa Rica and Colombia and forms the narrow, lowest portion of the isthmus that links North and South America. It is best known for the Panama Canal which joins the Caribbean Sea to the North Pacific Ocean. It has a population of approximately 3.5 million. Panama City, the country's capital, has a population of about 1.7 million.
Panama was a Spanish colony until 1821. In 1903, Panama broke an alliance with Colombia and became an independent republic. The Colon Free Zone, Panama's Free Trade Zone is the second largest in the world after that of Hong Kong. Operations and transactions taking place in the Free Trade Zone are subject to a special tax treatment whereby imports from other parts of the world and re-exports to other countries are exempted from any Panamanian import or export taxes.
Spanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade. Panama uses the United States Dollar as its currency.
The laws of Panama are based on Spanish Civil Law with many Common Law influences, particularly regarding Company Law.
General Company Description:
Type of Company for International Trade: Generally, companies are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are also used.
Panamanian companies cannot undertake the business of banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity that would suggest an association with the banking, finance, fiduciary or insurance businesses.
Language of Legislation and Corporate Documents: Spanish and certified English translations.
Registered Office Requirement: Yes, must be maintained in Panama at the address of the Registered Agent.
Corporate Characteristics:
Shelf Companies Available: Yes.
Type of entity: Non Resident
Type of law: Civil
Shelf company availability: Yes
Minimum government fees (excluding taxation): USD300
Corporate tax: Zero
Double taxation treaties: None
Standard share capital currency: US Dollar
Minimum paid up: USD1
Usual authorised: USD 10,000
Minimum number of Directors: Three
Local required: No
Publicly accessible records: Yes
Location of meetings: Anywhere
Minimum number of shareholders: One
Publicly accessible records: Optional
Location of meetings: Anywhere
Company Secretary: Required:
Local or qualified: No
Accounts, required: Yes
Audit requirements: No
Requirement to file accounts: No
Publicly accessible accounts: No
Change in domicile permitted: Yes