The Republic of Panama is located in Central America and is bordered by Costa Rica to the west and Colombia to the southeast; the Caribbean Sea to the north, and the Pacific Ocean to the south. The capital is Panama City; the official language is Spanish, and the currency is Balboa (PAB), and US Dollar (USD). Panama stands as Latin America’s second most competitive economy. It is a member of the World Bank; the Inter-American Development Bank; the International Monetary Fund (IMF); the United Nations General Assembly; the Organization of American States (OAS); the Latin American and Caribbean Economic System (SELA), and the International Criminal Court, among others.
Key Benefits & Features of Company Formation:
- There are seven options for company formation: Corporation; General Partnership; Limited Partnership; Stock Issuing Limited Partnership; Cooperatives; Single Proprietorship, and Limited Single Proprietorships.
- A Limited Partnership operates in a similar fashion to a US Limited Liability Company / ‘LLC’.
- Activities conducted by an offshore company outside of Panama have zero tax.
- The free movement of currency is not subject to exchange controls or restrictions.
- There is no requirement to keep books or records, nor to prepare, maintain or file financial statements.
- Two or more natural persons (of legal age) of any nationality, or corporate bodies are required.
- The authorised capital of a Panama corporation does not need to be fully subscribed or paid up.
- Director and Shareholder meetings do not have to take place in Panama.
- The standard capitalisation for an offshore company is US$ 10,000.00.
- Director requirement is a minimum of three.
- Director names and address details are made public.
- Officers are required for the positions of: President; Treasurer, and Secretary.
- President, Treasurer and Secretary may be natural persons or corporate – resident or non-resident.
- Whilst officers are permitted to hold more than one position, the same person is not permitted to take the positions of both President and Secretary.