Republic of Panama The southernmost of the Central American nations, Panama is south of Costa Rica and north of Colombia. The Panama Canal bisects the isthmus at its narrowest and lowest point, allowing passage from the Caribbean Sea to the Pacific Ocean. Panama is slightly smaller than South Carolina. It is marked by a chain of mountains in the west, moderate hills in the interior, and a low range on the east coast. There are extensive forests in the fertile Caribbean area. The official language is Spanish which is also the national language while English is also widely understood. Panama is a constitutional republic. The president, who is popularly elected for a five-year term and cannot serve two consecutive terms, holds executive power. The unicameral Legislative Assembly has 72 members who are also elected for five years. Administratively the country is divided into nine provinces, plus three autonomous territories for indigenous people. Panama's economy is based primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include 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 2000-01. The government plans public works programs, tax reforms, and new regional trade agreements in order to stimulate growth. Company Statute: Corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Taxation: No corporation tax is levied on non-Panamanian sourced income. Shareholders/Members: The minimum number of shareholders is one. Directors/Managers: Both corporations and natural persons may act as directors and the minimum number of directors is three. They may be of any nationality and need not be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors. Company Secretary: A company secretary must be appointed. The company secretary may be a natural person or a body corporate. They can be of any nationality and need not be a resident of Republic of Panama. Registered Office Required: Yes, must be maintained in Panama at the office of a professional 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 may be expressed in any language using the Latin alphabet. The Registrar may request a Spanish or English translation. Financial Statement Requirements: No requirement if income is of non-Panamanian sources. Annual Report/Licence Fees: USD 250.

back to top