Legal benefits of Company Incorporation in Panama

In Panama, company formation is quite flexible and attractive for both local and international businesses.

Legal and Structural Benefits

l Limited liability: Shareholders only risk the capital they contribute; their personal assets are protected.

l No minimum capital requirement: The law does not impose a minimum capital; it is common to declare an authorized capital of US$10,000, but there is no requirement to pay it upfront.

l Foreign shareholders and directors: They can be of any nationality and live in any country.

l Flexible shares: They can be registered or bearer (the latter with authorized custody).

l Possibility of a single shareholder: Although the incorporation requires two subscribers, it can later be reduced to just one.

l Ease of transfer of ownership: The sale or transfer of shares does not require amending the bylaws or registering changes in the Public Registry.

l Indefinite duration: unless otherwise agreed in the bylaws.