corporation law of the Republic of Panama provides that
any two natural persons acting as the organizers and the
subscribers may appear before a Notary Public to
organize and constitute a corporation. In Panama, Public
Notaries govern most entities under the direction of a
is the usual practice for natural or juridical persons
outside of Panama to accomplish the formation of a
Panama corporation through a local Panamanian law
office, a trust company, or a professional management
services firm. For the purpose of drafting necessary
documents, the following simple information and
particulars are supplied by the client to the
NAME: A preferred name, with two alternatives in the
event that the desired name may conflict with a name
already in use, expressed in any language, that must
also include a corporate ending such as "S.A" (Anonymous
Society), "Corporation" or "Corp", "Incorporated" or
"Inc.", "Limited" or "Ltd." to clearly denote that they
are incorporated companies.
OBJECTS: While the standard "Articles of
Incorporation" for a Panama corporation intentionally
provide a very broad scope of activities, it is not
unusual to include one or more articles which deal
specifically with the client's intended objectives.
CAPITAL: The capital of a Panama corporation is
expressed as "Authorized Capital", and there is no
minimum capital that must be paid in. Unless there is a
compelling reason to the contrary, it is standard
practice to specify an authorized capital of
US$10,000.00, represented by 100 common, voting shares
having a par value of US$100.00 each, or to express the
capital as being 500 common, voting "No Par Value
Shares". In either case, the nominal capital
registration tax (payable once only) is US$60.00.
SHARES: Shares may be used to "Bearer", or in
"Nominative form. Preferred, Class A, Class B, voting,
non-voting and other shares structures are also
ORGANIZERS: Local nominees usually act as the
organizers and subscribers for incorporation purposes.
DIRECTORS: A minimum (with no maximum) of
three directors is required. These may be of any
nationality, residence or occupation. It is general
practice to employ local nominees for this purpose.
Juridical persons (other corporations or entities) can
also act as directors. We can supply our own for an
additional charge above.
OFFICERS: A President, a Treasurer, and a Secretary
are required. These may be natural or juridical persons,
and there are no requirements as to nationality,
residence or occupation, While one person may hold more
than one office, it is customary that the President
should not also be the Secretary. One of the officers is
usually named Vice-President. There may be as many
Vice-Presidents as required. Managers may also be named
if desired. Local nominee directors and officers are
DOMICILE: A Registered Agent domiciled in Panama is
required and by law must be a practicing lawyer or law
firm. Domicile of registry is not the domicile of
"Business". The owner of the corporation may have the
company's business domicile anywhere in the world.
Incorporating and Management Firms usually name their
own lawyer as the Resident Agent, but they do not act as
business offices for the corporation.
DURATION: The corporation may have a limited or
unlimited life; however, it is customary for the
"duration" to be perpetual.
TIME OF INCORPORATION: Time of incorporation can be
anywhere between 5 to 8 working days. Off-the-Shelf
companies are also available but are usually more
expensive than new incorporations because they are
already in existence and are older. They usually have to
be updated and updating takes around the same time as
ordering a new incorporation.
CORPORATE SEALS AND MINUTES BOOKS: Both Corporate
Seals or Minutes Books are not required, especially if
the corporation does not operate in Panama. Owner or
his/her client may want to create their own seals, and
carry their own books usually at the place of business
of the corporation (business office).
CHARGES AND FEES: The cost for the formation of a
standard format Panama corporation usually includes
Articles of Incorporation, English Translations of
Documents, issuance of a Power of Attorney, Share
Certificates, Nominee Directors for one year, Resident
Agent for one year & Registration Address. It will not
include Certificate of Incorporation with Apostille
which is optional and requested/obtained after