A corporation in Panama is a legal body regulated by Law 32 of February 26, 1927. Where there may be a single owner or several (partners) who come together for a common commercial or patrimonial purpose, the partners (shareholders) must establish the percentage of participation equivalent to an amount of shares.

At the time of creating the articles of incorporation of the corporation, it must be signed by two subscribers who accept at least one share of the corporation and are not strictly the owners of the corporation. In practice, it is usual for the articles of incorporation to be signed by the lawyer (resident agent), together with another lawyer from his office. After the agreement is formed, the subscribers renounce the shares they have subscribed or, if required by the client, they remain with said shares for administrative reasons.

Panamanian corporations can engage in any lawful business that is not contrary to any law, they can also do business abroad and locate their offices anywhere in the world. The business possibilities offered by a Panamanian corporation are diverse, one of its main attractions is that when the commercial activity is not carried out in Panamanian territory, it is exempt from paying taxes on that activity and the money it generates can be received in Panama free of taxes.

Another interesting point is that the social capital to form a corporation in Panama is a registered capital and it is not necessary that it exist liquidly in a bank account in Panama, this facilitates its constitution. However, if necessary through the company, a foreigner, whether natural or legal person, can open bank accounts or fixed terms in Panama, the latter with interesting returns of up to 5.5% in the banks of the Panamanian market.

Advantages of using a corporation in Panama:

• The Public Limited Company protects the identity of the shareholders.
• The Public Limited Company does not pay taxes for the activities carried out outside of Panama.
• The Public Limited Company can carry out investments or commercial activities anywhere in the world.
• The Limited Company can open bank accounts in Panama or in another jurisdiction.
• You can establish a Public Limited Company, without traveling to Panama.
• The process is fast and reliable.