Panama was the first country in the region to enact modern legislation that would allow the formation of "offshore" companies for purposes of asset protection and tax planning. The simplicity and flexibility of provided by corporate legislation, makes Panamanian corporations the most common form of business entity used for both Panamanians and foreign investors.

Salient features:

  • Full tax exemption over income obtained from foreign sources and operations carried out outside of Panama.
  • There are no exchange controls.
  • The Articles of Incorporation and capital can be prepared and expressed in any language and currency.
  • A minimum capital is not required nor must it be paid at the time of incorporation.
  • There are no restrictions on the number of shareholders.
  • There is no public record of the identity of the shareholders.
  • Directors and officers may be individuals and/or legal entities.
  • In addition to the formation of Panamanian corporations, we also advise on the establishment of private interest foundations and trusts pursuant to Panama law.