A corporation in Panama is a legal body regulated by law 32 of February 26, 1927. Where there may be a single owner or several (partners) who come together for a common commercial or patrimonial purpose, the partners (shareholders) They must establish the percentage of participation equivalent to an amount of shares.
At the time of creating the corporation pact, it must be signed by two subscribers who accept at least one share of the company and are not strictly the owners of the company. In practice, it is usual for the articles of incorporation to be signed by the lawyer (resident agent), together with another lawyer from his office. After the agreement is formed, the subscribers renounce the shares they have subscribed or, if required by the client, remain with said actions for administrative reasons.
Panamanian corporations can engage in any lawful business that is not contrary to any law, they can also do business abroad and locate their offices anywhere in the world. The business possibilities offered by a Panamanian corporation are diverse, one of its main attractions is that when the commercial activity is not carried out in Panamanian territory, it is exempt from paying taxes on that activity and the money it generates can be received in Panama free of taxes.