Introduction

The Republic of Panama is located in the centre of the American Continent and lies between Costa Rica to the north and Colombia to the south. It has a growing banking and insurance sector. There are no restrictions on foreign investments or exchange control. Panama is one of the oldest offshore centres in the world and has a strong professional infrastructure as well as favourable commercial secrecy laws. As an established tax-friendly investment and offshore financial services centre, Panama also possesses the worlds principal yacht and ship registration.

The provision of Corporate Law of Panama has enabled it to make the Panama Corporation a preferred vehicle for foreign investors. The law imposes minimal reporting requirements, as well as simple and fast incorporation procedures. This corporate vehicle is very cost-effective because of the low government fees and it is not subject to exchange controls or currency controls. If Bearer Shares are issued they must be fully paid up.

Incorporating requirements

Directors

Minimum of 3 directors required, of which 0 must be residents.
Corporate directors are permitted.
Director's meetings are not required
There is a public director's register
Other notes: No location restrictions for meetings. Only one Shareholder is required after Incorporation

Secretaries

Minimum of 1 secretaries required, who need not be residents.
Corporate secretaries are permitted.
There is not any requirement for secretaries to hold a professional qualification
Other notes:

Shareholders

Minimum of 2 shareholders required
Corporate shareholders are permitted.
There is not a public shares register
Bearer shares are permitted.
No par value shares are permitted.
Usually the Authorised share capital is 10000 shares of USD100 each.

Miscellaneous