Panama corporate law, enacted since 1927, is mainly based on the Delaware and New York Corporate Laws and has, since then, not suffered any amendments, which is proof enough of its unquestionable effectiveness.

The basic corporate structure found in United States applies also in the Panamanian legal system. Nonetheless, there are certain advantages as a result of the fact that one single body of law applies to all corporations. 

Meetings of the Boards may be carried out anywhere in the world and may even be held by electronic means, such as the internet, so that parties do not have to be in one place at the time of the meeting.

All corporate documents may be prepared in English from start –including the corporate charter- so long as they are translated into the Spanish language.
Officers and Directors do not have to be shareholders in order to occupy such posts, which guarantees that shareholder confidentiality shall remain intact throughout the existence of the corporation. Furthermore, corporate veil may only be lifted by way of a court order and stock may be issued as bearer and/or registered. Finally corporate records may be kept anywhere in the world where the corporation keeps an address.

Corporations Facts
. Corporations which only engage in commercial activities and/or derive income outside the territory of Panama, are exempted from the payment of income tax
· Corporations may hold title to real estate property without limitation.
.Incorporation procedure does not require for interested party to be present in Panama.
. Board members are not required to be in Panama for their designation in such posts; they would only have to document their acceptance and provide sufficient information for location, such as passport (a copy to be supplied) , address, telephone number and e.mail.
· Panama corporations pay a low annual corporate franchise tax of US$300 to remain in good standing.

Costs and Legal Fees

Basic incorporation procedure, including expenses and legal fees may run anywhere from US850.00 to US 1500.00, depending on the client’s needs.