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A Panamanian corporation offers the following advantages:

  1. A minimum capital stock is not required by law nor it must be fully-paid at the time of incorporation.
  2. The shares may be issued in registered form, with or without par-value.
  3. There are no restrictions on the number of shareholders.
  4. Shareholders are not responsible for the debts of the company, but up until the amount they owe on account of their shares.
  5. There is no public record on the identity of the shareholders.
  6. Directors and dignitaries do not need to be shareholders.
  7. The directors and dignitaries can be natural or legal persons and do not need to be residents or citizens of the Republic of Panama nor be domiciled in that country.
  8. No annual or periodic meetings of the Assembly or the Board of Directors are required or mandatory, and these can be held in Panama or abroad.
  9. The address of the company can be anywhere in the world.
  10. The ultra vires principle does not apply, which prohibits the company from carrying out operations not mentioned in the agreement.
  11. The company can maintain its accounting records anywhere in the world, except if it carries out businesses in Panama.
  12. The company that does not do businesses in Panama (i.e. off-shore company) is not obliged to pay income tax, or to present a tax return, nor any financial statement in Panama.