How to Open a Panama Corporation
- 1). Determine the identity of your corporate organizers. You will need two individuals; corporations or other legal entities are not eligible to serve as organizers.
- 2). Decide the name of the corporation. You should also choose two or three alternate names, in case your preferred name is already in use. The corporate name will have to include a suffix such as Corporation, Corp., Limited or Ltd. to indicate that it is a limited liability entity.
- 3). Select at least three directors of the corporation. You may select more if you prefer, but three is the legal minimum. None of the directors need to be Panamanian. A corporation or other legal entity may serve as a director.
- 4). Choose the officers of the corporation. In order to comply with Panamanian law, you must choose a president, a secretary and a treasurer. As is the case with directors, a corporation or other legal entity may fill any of these positions. You may choose any of the directors to fill any of these positions, and you may select additional officers as your business needs require.
- 5). Select a registered agent. The registered agent must be either a lawyer or a law firm domiciled in Panama.
- 6). Determine the identities of the shareholders and their shareholding percentages. Create share certificates that will allow shareholders to prove that they own shares in the corporation.
- 7). Determine the amount of your authorized capital (the initial investment into the corporation). There is no minimum investment required by Panamanian law.
- 8). Draft the articles of incorporation. They must include the name of the corporation along with the names and identifying details of the organizers, shareholders, officers and directors. They must also identify the registered agent, state the purpose of the company, list the number of shares issued and state the initial investment. It is best to state the corporate purpose broadly in order to give it maximum flexibility.
- 9). Locate a Panamanian law firm that includes a notary public. Bring both organizers along with your draft articles of incorporation and have the organizers sign the articles of incorporation in the presence of the notary public. You will also have to pay a registration fee of $250 (as of February 2010), along with the fee charged by your attorney. Your attorney will submit the articles of incorporation to the appropriate Panamanian authorities, and your corporation will be formed within seven to 10 days.
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