Establishing a Company
Panama has one of the most modern and flexible corporate laws in Latin America. Below are some of the advantages offered by Panamanian corporate Law:
1. Two or more persons of any nationality, even though not domiciled in Panama, may organize a corporation for any lawful purpose. The articles of incorporation may be executed anywhere, even outside Panama, and in any language.
2. There are no requirements regarding the amount paid in capital.
3. Ownership of a Panamanian corporation may reside in a single individual or corporation and no part of the capital need to be held by a Panamanian.
4. There are no nationality or residence requirements for shareholders.
5. Neither the directors nor the officers are required to be shareholders.
6. The Board of Directors must be composed of at least three directors, but one person may hold more than one position.
7. Meetings of shareholders or directors may be held outside of Panama. Proxies may be used by shareholders/directors.
In order to form a corporation in Panama, the client must provide the following information:
1. The name of the corporation. It may be in any language, but it must terminate in a word or abbreviation indicating that it is a corporation.
2. The objectives and purposes of the corporation
3. The amount of authorized capital. Usually the authorized capital will consist of US $10,000 divided into 100 shares of US $100 each. However, it can also be tailored to your needs.
4. Shares may be nominative or bearer shares.
5. Duration of the corporation, usually perpetual.
6. The full names and addresses of three or more directors and/or officers.
7. The domicile of the corporation.
*Information provided by Ministry of Trade and Industry.
