Hightlights of Panama Companies

Business Transactions

  • May engage in any lawful business in any country and may carry on transactions whatever currencies they choose.
  • Registration of mortgages on vessels and aircraft available.


  • Full exemption from taxation for any business activity or transaction carried outside Panama.

Authorized Capital / Share

  • Nominative or bearer shares at owner’s option.
  • No paid-in capital is required.
  • No minimum or maximum capital requirements

Directors / Officers (Secretary) and Shareholders

  • Shareholders, director and/or officers can be either corporate entities or natural persons.
  • The directors may grant special or general power of attorney.
  • Neither the directors nor the officers need be shareholders.
  • Shareholders and directors may hold their meetings in any country and may attend such meeting by proxy

Annual Filing

  • No requirement to file annual returns or financial statements; no requirement to hold annual general meetings of shareholders of directors.

Incorporation and Administration

  • Familiarity of Incorporation documents (Articles of Incorporation)
  • The words “Corporation” “Incorporated” “Sociedad Anónima” or the abbreviations “Inc.” or “S.A.” may be used in a company’s name.
  • Speedy incorporation procedure and simple ongoing administration.
  • Shelf companies available.

Record Keeping

  • Accounting books of the company may be kept abroad.

Registered Office, Corporate Seal and Legalization

  • Registered Office in Panama is required
  • Corporate seal is optional.
  • Use of Apostille should documentation need to be legalised. Legalisation via a Consulate is also available for some countries.

Income Taxes

It is a basic constitutional principle in the Republic of Panama that no one has to pay any contribution or tax that is not legally established, and the collection of which is not carried out as prescribed by law (Artic1e 48 of the National Constitution).

In 1991, the Legislature passed Law N° 31, known as the Tax Reform Act. According to the National government, the provisions set forth in this law have the purpose of promoting tax justice by reducing tax rates, and modernizing the fiscal administration.

The Internal Revenue Service of the Ministry of the Treasury is the government office in charge of overseeing and collecting revenues, services, rights, taxes, tolls, fees, duties, and excise taxes for the National government.