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Company Formation Panama

Create a Company in Panama

Updated on Wednesday 16th January 2013

The several times amended Law 32 of 1927 (of 26th February) On Corporations and the Commercial Code of Panama is regulating the activities of a popular form of business in Panama: the corporation.

First of all, before incorporation,  the company opened in Panama must reserve the name of the company at the Public Registry. If it’s available, it must contain one of the following terminations: Corp. (Corporation),

Inc. (Incorporated) or SA (Sociedad Anonima)


A corporation in Panama is formed by minimum two founders and have its activities based on the Articles of Incorporation. The Articles are public and must be registered at the Panama Public Registry. It must state the name and the address of the founders, also the name, the address and objectives of the newly formed company, the total amount of the Corporate Capital and the way its divided into shares, details regarding the shares and the rights attached to it, the name and the addresses of the directors (it’s mandatory to be at least three), the name of the registered agent in Panama and other regulations decided by the members of the company and according to the law.

If the Articles are written in another language than Spanish, an official translation must accompany it.


After incorporation of an offshore company in Panama, only a single shareholder is necessary in order to start the activities in this type of company.


The Board of Directors is taking all the daily decisions of a corporation and must be formed by at least three directors. Among their responsibilities we can mention the appointing of the President of the company, the Secretary and the Treasurer. In some cases, officers and representatives must be appointed, also by the Board of Directors, but it’s not mandatory.

The most important decision must be taken during the general meeting of the shareholders in matters which concerns the decrease or increase of the capital, any modification brought to the Articles of Incorporation, decision of merger or liquidation of the company.


The Corporate Capital of this type of company is divided into shares which may have a nominal value or not. The shares have attached to it the rights and obligations of the owner, including the right to vote and must be paid at a date decided by the Board of Directors.

Each shareholder is receiving a shares certificate where is stipulated the incorporation date of the company in the Mercantile Registry, the capital, the number of shares owned, if the shares were already paid, if not, the sum already paid, the rights and obligations attached to it and the classes of shares owned.


Another requirement of the corporations created in Panama is paying the annual registration fee. The industrial or commercial companies must have a Notice of Operation, before starting any activities. Exceptions are permitted.


The liquidation of a corporation established in Panama may occur if certain aspects were respected from the articles of association, if there was a unanimous decision of the shareholders, if the objectives of the company were achieved or if the Court decides that the company has broken several laws and needs to be liquidated.

Meet us in Panama

Call us now at +44 203 287 0408  to set up an appointment with our lawyers in Panama City, Panama. Alternatively you can incorporate your company without traveling to Panama.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Panama.

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