PANAMA
Fact Sheet
GENERAL INFORMATION
Panama, officially the Republic of Panama is located in Central America, bordering both the Caribbean Sea and the
Pacific Ocean, between Colombia and Costa Rica. The capital is Panama City. Panama controlled the Panama Canal
which connects the Atlantic Ocean and the Caribbean Sea to the North of the Pacific Ocean.
Panama's economy, because of its key geographic location, is mainly based on a well-developed service sector heavily
weighted towards banking, commerce, tourism, and trading. Revenue from canal tolls represents today a significant
portion of Panama's GDP and provides massive employment. Panama has the second largest economy in Central
America and it is also the fastest growing economy and the largest per capita consumer in Central America.
Other Basic Facts:
Time Zone
Language
Currency
-5:00 GMT
Spanish (official) and English
United States Dollar and Panamanian balboa
KEY CORPORATE FEATURES OF PANAMA CORPORATION (NON-RESIDENT)
incorporation
Shelf companies
Incorporation timeframe
Company Name
Language of Legislation and
Corporate Documents
Business Activities
Trading Restrictions
Share Capital
Permitted Currencies
Standard currency
Authorised capital
Minimum issued capital
Par / Nominal value
Bearer shares
Directors and Officers
Minimum Directors
Officers
Corporate directors
Local directors requirements
Location of meeting
Minimum numbers of meeting
Publicly accessible records
Yes, upon request
5 business days (expedite service is available)
Name of the Company may not be similar to the name of any corporation
already incorporated or registered in Panama. All Panamanian corporations
must end with the suffix Corporation, Incorporated, Sociedad Anónima
or the abbreviations CORP., INC. or S.A.. They may not utilise the suffix
Limited or LTD.
Names may be expressed in any language using the Latin alphabet. The
Registrar may request a Spanish or English translation.
Spanish and certified English translations
Panamanian corporations are allowed to carry on any activity that is not
contrary to the law, moral or public order. However, business of banking,
trusteeship and trust administration, insurance, assurance, reinsurance,
fund management, investment funds, collective investment schemes
and any other activity that would suggest an association with the banking,
finance, fiduciary or insurance businesses are regulated in Panama and
requires prior authorization even if the corporations are to operate these
activities abroad.
Any foreign currency
US$
Standard capital is US$10,000
One (1)
Optional
Allowed. No par value and bearer shares must be fully paid when issued.
Three (3)
Panamanian corporation are required to appoint a minimum of three (3)
officers (president, secretary and treasurer) who may also be the directors.
Allowed
Optional
Anywhere
Per Articles of Association
Yes
PANAMA
Stockholders
Minimum
Corporate stockholders
Local stockholders requirements
Location of meeting
Minimum numbers of meeting
Publicly accessible records
Company Secretary
Requirements
Registered Office & Resident Agent
Requirements
Accounts
Preparation of accounts
Audit requirements and filing
Publicly accessible records
Power of Attorney
Registration
Annual Requirements
Annual Return
Annual Tax Return
Annual licence fee
General
Corporate Redomiciliation
Legal System
Double Taxation Treaty Access
Exchange Control
Taxation
One (1)
Allowed
No
Anywhere
None
Optional
At least one (1), natural or corporate. The company secretary may be of any
nationality and need not be a resident of Panama. In practice of the directors
will act as secretary.
Mandatory to be maintained in Panama at the office of the Resident Agent.
Optional
No
No
Powers of Attorney, general or special, granted by public deed or by private
document with a legally certain date will be effective in respect to third
parties on the date of its execution and may be registered at the Public
Registry at the interested parties’ discretion
None
None
Franchise Tax of US$300
Yes
Civil
Yes if the Double Taxation Agreement allows it.
No
Income obtained from business effected outside the territory of the Republic
of Panama is not income derived from a source within Panama, and therefore,
is not taxable under Panamanian Law, even though the business might be
direct from an office established in Panama
For more details, please contact us at [email protected]
The information in this document is not advice of any kind but general information only and should not be relied on as legal advice. Kensington Trust Group
recommends seeking professional advice on legal or tax issues affecting you before relying on it. While Kensington Trust Group tries to ensure that the content
of this document is accurate, adequate or complete, it does not represent or warrant, express or implied, its accuracy, correctness, completeness or use of any
of the information. Kensington Trust Group does not assume legal liability for any loss suffered as a result of or in relation to the use of this document. To the
extent permitted by law, Kensington Trust Group excludes any liability for negligence, for any loss, including indirect or consequential damages arising from or
in relation to the use of this document.
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