A Panamanian corporation offers the following advantages:
- A minimum capital stock is not required by law nor it must be fully-paid at the time of incorporation.
- The shares may be issued in registered form, with or without par-value.
- There are no restrictions on the number of shareholders.
- Shareholders are not responsible for the debts of the company, but up until the amount they owe on account of their shares.
- There is no public record on the identity of the shareholders.
- Directors and dignitaries do not need to be shareholders.
- 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.
- 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.
- The address of the company can be anywhere in the world.
- The ultra vires principle does not apply, which prohibits the company from carrying out operations not mentioned in the agreement.
- The company can maintain its accounting records anywhere in the world, except if it carries out businesses in Panama.
- 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.
