Let’s state the obvious: Panama has Panama Canal which plays pivotal role in the world economy. As a consequence even world biggest economies like U.S. tend to be less aggressive about pushing their political agenda towards Panama. Also it is worth mentioning that Panama has legislation about bearer shares corporations also known under the local name “Sociedad Anonima”. Quite predictably that means “Anonymous Company”. They are accepted norm in the Panama business and banking fields.
For international transactions Corporations and Private Foundations are most preferred. There are no capital requirements. One shareholder is enough in order to run the company. Shareholders act as a highest decision making body. Also a company must have at least three directors and three officers. The officers (a president, treasurer and company secretary) can be represented by the same person. Also it doesn’t matter whether they are individual or corporate. One corporate council member or three individual members are enough for Private Foundations. Regular meeting are not required and they can take place anywhere in the world. Each corporation must have a resident agent (a lawyer) in Panama, named in the Articles. Registered office is maintained at the address of a registered agent. The company incorporated in Panama must pay to authorities $300 as an Annual Franchise Tax. Generally speaking, offshore companies incorporated in Panama jurisdiction are exempted from almost all taxation: there are no taxes for financial transaction outside Panama. Also state doesn’t require filing of annual returns, audit of financial statements and disclosure of profits. There are no residency requirements for director and company secretary.