Panama has one of the most modern and flexible corporate laws in Latin America. In order to form a corporation in Panama, the client must furnish the following information:

  • The name of the corporation. It may be in any language, but it must terminate in a word or abbreviation indicating that it is a corporation
  • The objectives and purposes of the corporation
  • The amount of the authorized capital. Usually the authorized capital will consist of US$10,000 divided into 100 shares of US$100 each. Shares may be nominative or bearer shares.
  • Duration of the corporation, usually perpetual
  • The full names and addresses of three or more directors and/or officers
  • The domicile of the corporation

The time period usually involved in setting up a corporation is from 15 days to two months. Attorney fees usually range from US$600 to US$1,500 per corporation.

Exemptions for business license requirements are granted to persons or legal entities engaged exclusively in agriculture, cattle, bee, or poultry husbandry, or in the manufacturing and sale of handicrafts, provided that the work is not performed by hired workers.