General Information

The Republic of Panama is located in Central America and forms the narrow isthmus that links North and South America. Panama is famous for its canal, which joins the Atlantic and Pacific Oceans. Because of the international nature of the Panama Canal, the country’s population of 2.8 million has excellent telecommunications, airline links and a sophisticated banking and financial system as well as a major free port.

The Country has a legal system based on its constitution. Its economic growth in the last ten years has been remarkable.

The U.S. Dollar is the legal tender in the Republic of Panama and its official language is Spanish, but English is also widely spoken.

Panama Offshore Company Formation

According to Panama’s Corporation Law 32 of 1927, any two persons of any nationality may create corporations. The normal procedure in the formation of a Panama corporation is that the Panamanian lawyers acting for the client form the corporation and it is therefore not necessary for the client to go to Panama nor sign any documents relating to the formation of the corporation.


  • Complete banking privacy .
  • Total secrecy and anonymity.
  • Complete business confidentiality.
  • No requirement to disclose beneficial owners.
  • No requirement to file annual returns or financial statements.
  • Convenient registration of vessels and ship mortgages
  • No requirement to hold an annual general meeting of shareholders or directors
  • Full exemption from taxation on any business activity or transaction carried out outside Panama
  • No minimum or maximum capital requirements.
  • Nominative or bearer shares at owner’s option.
  • Shareholders, directors and officers may be of any nationality or residents of any country.
  • Shareholders and/or directors may hold their meetings in any country and they may attend by proxy

Company Status

Non-resident Corporation.

Corporate Legislation Source

Civil Law; Law Number 32 of 1927 on Corporations; Code of Commerce as amended in 1997.

Company Name

The name of the corporation may be in any language and must end with an appropriate suffix such as Corporation, S.A., INC., Ltd., etc.

Shelf Companies

Shelf companies (both aged and contemporary) are available for purchase. A list can be supplied on request.

Share Capital

No minimum required. The share capital may consist of shares with a nominal or par value or both.

Our standard Articles provide that the authorized capital consists of US$10,000.00 divided into 100 shares of US$1.00 each.

Capital Duty

Registration fee of US$60.00 for a capital of US$10,000.00. Sliding scale operates above this level.


Two subscribers required but only one ongoing shareholder after incorporation.


Minimum three. There is no restriction on location. Natural persons are allowed.


Minimum one. There is no restriction on location.

Registered Office

A registered office is not mandatory.

Registered Agent

Panamanian legislation requires every Panama Corporation to have a Registered Agent in the Republic of Panama that must be either a lawyer or law firm.

Public Information

Names and addresses of Directors, Officers and Registered Agent.

Corporate Seal

The company may optional keep any registers in any part of the world such as minutes or stack registers. Further benefits that make Panama attractive include:

  • No accounts required.
  • No annual returns required.
  • Corporate Seal is Optional.
  • No annual returns required.
  • Bound books, stamped and signed by a circuit Judge of Panama are no longer mandatory.

Tax Treatment

With the exception of the annual “franchise” tax that is not an income tax, Panama corporations without income arising from operations within the territory of the Republic of Panama are not subject to taxation in Panama. We recommend that the advice of a professional tax consultant be sought before the purchase of an offshore company.