The Republic of Panama is an independent nation of the junction of North and South America, best known for its canal. Panama is also a major offshore banking and financial centre, with branches of virtually all major banks from around the world.

   Its governments have always stood behind their financial services sector regardless of foreign pressures, and have used their extensive consular network to facilitate the legalisation of documents for use world-wide.

   Panama’s basic corporate vehicle is the corporation, which need not file any returns and pays an annual tax of US $150 (assuming there is no income derived from activities in Panama). Corporations pay taxes only on income derived in Panama.

   The incorporation and operation of offshore companies is governed by Law 32 of 1927, which has never been amended since its enactment and thus provides the investor with absolute certainty that the rules of the game will not be changed even in times of political conflict. It also allows the use of bearer shares and nominee directors, officers and shareholders.

   Board of Directors. There must be at least three (3) directors, but unless otherwise provided in the Articles of Incorporation, Directors need not be stockholders, nor nationals or residents of Panama. Meetings of directors may be held outside Panama, and Directors may be represented at meetings of the Board by proxy, who need not be Directors.

   The Board of Directors is elected by the stockholders, but vacancies, whether resulting from an increase in the authorised number of Directors or otherwise, may be filled by the vote of a majority of the directors.

   Officers. There must be at least a President, Secretary and Treasurer, who shall be chosen by the Board of Directors. Any person may hold two or more offices, if so provided by the Articles of Incorporation or by the by-laws.

   1. The name of the Corporation, with two alternatives. Name must end with a recognised corporate indicator, such as “Corporation”, “Incorporated” or “Societe Anonime”, or their abbreviations, “Corp.”, “Inc.” or “S.A.”

   2. Objectives/purposes of the Corporation, if not using our standard all inclusive clause.

   3. Description of the share capital. Standard authorised capital in Panama is US $10,000.00, divided into 100 shares of US $100.00 each. If no par value stock is desired, our standard articles specify a maximum of 500 shares.

  4. Full names of the directors (a minimum three is required) and of the officers (such as President, Secretary or Treasurer).
Additional directors and/or officers, may be appointed, if desired, and one person or entity may hold two positions, except that, for practical reasons, the president should not be the secretary at the same time. Moreover, one person or entity may be a director and not an officer and vice versa.

    Notes

   (1) For a copy of a full set of documents to be made apostille in the jurisdiction will cost a minimum US $

   (2) An annual franchise tax fixed at US $.....00 per company is payable to the Government within three months of registration and annually within three months of the anniversary date of registration. A surcharge of 20% is levied for late payment.

   (3) The cost for establishing a Foundation would depend on the complexities of the Foundation Charter and Regulations and the value of the initial endowment.