Given the different legal structures offered by the Panamanian legal
framework, corporations have an advantage over the rest. This is due to three
main factors: (i) shareholders’ discretion, (ii) tax incentives, and (iii)
quick incorporation.
Panamanian corporations are not necessarily used exclusively by large
organizations; being such versatile and flexible entities, they also benefit
new ventures in Panama and abroad.
We detail the previous points to consider now when incorporating a company as
follows:
- Choosing a name for the company: The first step is to
choose a unique name that has not been previously registered in the country.
The law requires that the name of the company include the words “sociedad
anónima” or its abbreviation “S.A.”
Verifying the availability of the name through the Public Registry of Panama
is essential to ensure that the proposed name is not already in use.
- Define authorized capital: The amount of capital stock that
may be represented by bearer shares or registered shares must be defined.
Different classes of shares may also be defined. However, the obligations
and rights of each class must be specified.
Flexibility in the share capital structure allows entrepreneurs to tailor
the company to their specific needs and financial strategies.
- Choose who will be the directors and officers. Panamanian
law requires the appointment of at least three directors responsible for
managing the corporation, who must be different persons. The directors may
be of any nationality and need not reside in Panama. In addition, they may
be legal persons.Likewise, officers known as president, secretary and treasurer of the
corporation must be appointed, who perform essential functions within the
corporation to be incorporated.
- Define the company’s purpose and domicile. The law requires
that the corporation’s objects be defined, which can be as broad as they are
specific. Likewise, the corporation’s domicile must be specified.
- Appoint a resident agent. In Panama, appointing a resident
agent who may be a natural or juridical person is mandatory. The resident
agent’s primary function is to act as an intermediary between the
corporation and the local authorities. The resident agent is responsible for
receiving legal notices and ensuring compliance with current regulations.
At Alcogal, we have extensive and specialized experience incorporating
companies in Panama. Our in-depth knowledge of the Panamanian legal framework
enables us to assist local and international entrepreneurs in every phase of
the incorporation process. We are committed to ensuring that all legal
regulations are rigorously followed, from selecting a distinctive name to
assigning directors and adequately organizing the share capital. Our team of
experts offers personalized and efficient guidance, optimizing the structure
of your company to maximize tax and operational benefits and ensuring a solid
foundation for your company’s success and sustainable development. With
Alcogal, excellence, and legal compliance are at the heart of every company we
help create.
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