GENERAL INFORMATION:

The Republic of Panama, with an area of approximately 76,900 sq km, is located between Costa Rica and Colombia, forms the narrowest and lowest portion of the isthmus that links North and South America.

POPULATION

The population of Panama is approximately 2.4 million, about 52% of which are in urban areas.

POLITICAL STRUCTURE

The Isthmus of Panama was discovered in 1501 by Rodrigo de Bastidas and Vasco Nuez de Balboa, who had a leading part in the establishment of Santa Maria La Antigua del Darien in 1510, the first permanent settlement on the mainland of the Americas. In 1513, Balboa led an expedition, in Panama, which discovered the Pacific Ocean. Pedro Arias Davila founded Panama City on 15th August 1519, almost a hundred years before Jamestown; the first permanent English settlement in North America was founded. Panama was a Spanish colony until 1821 when it became part of the Gran Colombia of Simon Bolivar. In 1903, Panama broke its alliance with Colombia and became an independent republic.
The executive branch of the Government is at present composed of a President and two vice-presidents, elected for a five-year term by direct election.

INFRASTRUCTURE AND ECONOMY

The Colon Free Zone is located on the Caribbean side of the Isthmus of Panama near the Atlantic entrance to the Panama Canal. This Free Trade Zone is the second largest in the world after Hong Kong.

Operations and transactions taking place in the Free Trade Zone are subject to a special tax treatment whereby imports from other parts of the world and re-exports to other countries are exempted from any import or export taxes imposed by Panama. Income earned from re-exports is taxed at specially reduced rates.

LANGUAGE
Spanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade.

KEY CORPORATE FEATURES

GENERAL
Type of Company Non-resident
Political Stability Fair
Common or Civil Law Civil
Disclosure of Beneficial Owner No
Migration of Domicile Permitted Yes
Tax on Offshore Profits Nil
Language of Name Latin Alphabet

CORPORATE REQUIREMENTS
Minimum Number of Shareholders / Members One
Minimum Number of Directors / Managers Three
Bearer Shares Allowed Yes
Corporate Directors / Managers Permitted Yes
Company Secretary Required Yes
Standard Authorised Capital US$ 10,000

LOCAL REQUIREMENTS
Registered Office/Agent Yes
Company Secretary No
Local Directors No
Local Meetings No
Government Register of Directors / Managers Yes
Government Register of Shareholders /Members No

ANNUAL REQUIREMENTS
Annual Return No
Submit Accounts No

RECURRING GOVERNMENT COSTS
Minimum Annual Tax/Licence Fee US$ 150
Annual Return Filing Fee N/A