Panama

Population:

2.8 million (2000)

Currency:

Balboa, par with US$

Language:

Spanish, but English widely spoken

Time zone:

GMT minus 5

Centre's expertise:

AKey location between North and South American with growing political stability

General requirements

Type of entity

Corporations

Type of law

Law 32 of 26 Feb. 1927 complemented by Decree Law No 5 of 2 July 1997

Shelf company available

Yes

Time to establish a new company

2 to 5 working days

Taxation

No tax on transactions or business outside Panama; no tax on foreign source income

Double taxation agreements

None

Forex restrictions

None

Language & name restrictions on companies

Spanish is language of documents; names may not be similar to existing names

Share capital

Permitted currencies

Any but US$ is usual

Minimum paid up

None

Usual authorized capital

US$10,000

Directors and personnel

Minimum number

3

Local required

No

Company secretary & qualifications

Required but no nationality requirement

Shareholders and AGM

Minimum number

1, but no nationality requirement, except for corporations doing retail business in Panama

Disclosure requirements

Public registration of directors and officers, but not of shareholders

Publicly accessible records

No requirement to disclose beneficial owners

Obligations for annual meetings

As provided in company charter

Location of AGM

Meeting may be held outside Panama, as per company charter

Accounts

Requirement to prepare

Not for companies that do not do business in Panama

Audit requirements

Not for companies that do not do business in Panama

Account filing obligations

Not for companies that do not do business in Panama

Publicly accessible accounts

Not for companies that do not do business in Panama

Other

Requirements to file annual return

Not for offshore companies; only if the company operates inside Panamanian territory

Change in domicile permitted

Yes 

Need to registered office

Registered office is not compulsory, but registered agent is

Number of companies set up in last year

25,200 companies set up in 2004

Total number of companies on register

n.a.