Compliance Requirements

Authorised and Issued share capital: The standard authorised share capital is US$ 10,000 divided in to 100 common voting shares of US$ 100 each, or 500 common voting shares of no par value; the capital may be expressed in any convertible currency. The minimum issued capital is either one share of no par value or one share of par value.

Classes of shares: Non-voting shares, preferred shares, registered shares.

Bearer shares permitted: Yes, but not available.

Taxation: No corporate tax on foreign-sourced income.

Double Taxation Agreements: None.

Financial Statements: not required, if income is of non-Panamanian source.

Licence Fees: Annual Franchise Tax of US$ 250 is payable.

Annual renewal fee: Both for corporations and foundations it includes resident agent, registered office, nominee directors. The 1st year annual fees are paid together with the incorporation costs .

Directors: The minimum number of directors is three. Either a natural person or a corporate entity may be a director. There are no restrictions as to their nationality and country of residence.

Panamanian companies are required to appoint a minimum of three officers – president, secretary and treasurer, - who may also act as directors.

Company Secretary: A company secretary is required to be appointed; he may be a natural person or a corporate entity. There are no restrictions as to the nationality and country of residence of company secretary.

Shareholders: The minimum number of shareholders is one.