Register - Panama Company Incorporation, Panamanian Corporation, Sociedad Anónima,

Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Its capital and largest city is Panama City, whose metropolitan area is home to nearly half of the country’s over 4 million inhabitants.

Panama has shown an average growth of 5.9% until 2019 , its economy is based on services, among the main ones we can mention: financial, tourism, and logistics services that represent 75% of its GDP.

The Panamanian Corporation
This type of company is commonly incorporated by foreign entrepreneurs in Panama. The Panamanian Corporation must appoint at least 3 directors and 1 shareholder, who can be of any nationality or place of residence. Furthermore, the minimum initial share capital required will be only US$1; The directors and shareholders will not be required to register their personal details for public records. This is one of the key advantages of the Panamanian corporation, whose Spanish name is “Sociedad Anónima”.

Panama has sometimes been called the “Latin American Singapore” due to the success of its economy, keep in mind that Singapore is known as a highly developed free-market economy, a vision that Panama shares.

• General Partnership: Here the partners are jointly and unlimitedly liable for the corporate operations, therefore, even if only one of them has made a mistake to the detriment of the partnership, this would imply that all the partners could be sued. The name is usually accompanied by the phrase “Y compañía”, “Y hermanos”, “E hijos” or similar, including abbreviations.

• Limited Company: Limited Liability Company (Similar to an LLC in the United States) and can have between 2 and 20 partners who must be registered in the Public Registry Office; they can be natural or legal persons. The share capital is integrated by the contributions of the partners and can be in any currency. The denomination is free to choose, but “Sociedad de Responsabilidad Limitada” or its abbreviation “SRL” must be added.

• Limited Partnership by Shares: Capital is divided into shares corresponding to the contributions of the partners. One of the partners is in charge of the administration of the company and is responsible for the obligations of the company, the rest of the partners don’t share this responsibility. Liability is divided in the same way as in the Limited Partnership: “Comanditarios” and “Comanditados”. Its name includes “Sociedad en Comandita por Acciones” or its abbreviation “S.Com. p.A.” or “S.C.A.”.

• Limited Partnership: Hybrid between the general partnership and the joint-stock company, here coexists between partners who contribute work (“comanditados”, have joint and unlimited liability for the obligations of the company) and general partners who contribute capital but do not participate in the management (“comanditarios”, limited to the capital contributed by each partner). Its name includes “Sociedad en Comandita” or its abbreviation “S. en C” or “S.Com.”

• Foreign Corporation: One of the benefits of the Panamanian legislation is that it can validate those foreign corporations

• Individual Limited Liability Companies: This company is an option for the sole owner, such person transfers the assets of the business and the civil liability is limited to the number of assets transferred.

• Stock Company: This type of company is the most used in Panama , more than 90% of the companies have been created under this structure, this is due to the tax benefits granted to them. Its capital stock is based on the economic contributions of all its partners and is divided into shares. It is necessary to be composed of two or more persons of any nationality; they don’t need to be domiciled in Panama

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