Panama Offshore Company Overview 

Panama's dollarised economy rests primarily on a well-developed services sector that accounts for four-fifths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004 led by export-oriented services and a construction boom stimulated by tax incentives. The government has been backing tax reforms, reform of the social security program, new regional trade agreements, and development of tourism. Unemployment remains high.

Features

General
Type of entity	Non-Resident
Type of law	Civil
Shelf company availability	No
Minimum government fees (excluding taxation):	US$250
Corporate taxation	None
Double taxation treaty access	No
Share capital or equivalent
Standard currency	US$
Permitted currencies	Any
Usual authorised:	US$10K
Directors or Managers
Minimum number	Three
Local required:	No
Publicly accessible records	Yes
Location of meetings	Anywhere
Members
Minimum number	One
Publicly accessible records	Optional
Location of meetings:	Anywhere
Company Secretary
Required	No
Local or qualified	No
Accounts
Requirement to prepare	Yes
Audit requirements	No
Requirement to file accounts	No
Publicly accessible accounts	No
Other
Requirement to file annual return	No
Change in domicile permitted	Yes

General Information

The Republic of Panama, with an area of approximately 76,900 sq. km., is located between Costa Rica and Colombia, forms the narrowest and lowest portion of the isthmus that links North and South America.

• Infrastructure And Economy

The Colon Free Zone is located on the Caribbean side of the Isthmus of Panama near the Atlantic entrance to the Panama Canal. This Free Trade Zone is the second largest in the world after 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 import or export taxes imposed by Panama. Income earned from re-exports is taxed at specially reduced rates.

• Language

Spanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade..

• Currency

United States Dollar.

• Exchange Control

None.

• Type of Law

Common Law based on English system..

• Principal Corporate Legislation

Corporation Law No. 32 of the 1927 Commercial Code, Decree Law 5 of 1997 and Executive Decree 296 of 1997...

Company Information 

• Type of Company for International Trade and Investment

Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are used also..

• Restrictions on Trading

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.
.

• Powers of Company

A company incorporated in the Cayman Islands has the same powers as a natural person.

• Language of Legislation and Corporate Documents

Spanish and certified English translations..

• Shelf Companies Available

Yes.

• Language of Name

Spanish and certified English translations.

• Registered Office Required

Yes, must be maintained in Panama at the address of the Registered Agent.

• Name Restrictions

A name that is similar to or identical to an existing company. Names of well known companies incorporated elsewhere or a name that implies government patronage.

• Names requiring consent or licence.

Bank, building society, savings, insurance, assurance, reinsurance, fund management, investment fund, trust or their foreign language equivalents.

• Suffixes to Denote Limited Liability

All Panamanian corporations must end with the suffix Corporation, Incorporated, Sociedad Anónima or the abbreviations Corp, Inc or SA. They may not utilise the suffix Limited or Ltd.

• Disclosure of Beneficial Ownership to Authorities

No.