If properly-structured, a non-resident Panamanian company is legally tax-exempt on income derived outside of Panama. However, an annual franchise tax of US$250 is payable in lieu of corporation tax.

Panama company formation is cost-effective and fast. Panama company formation has no minimum capital requirements.

Following Panama company formation, it is not necessary to file financial reports or tax returns, provided the company's activities occur outside Panama.

It is easy to open global corporate bank accounts to support Panama company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Panama is a member of the Free Trade Area of the Americas (FTAA) which makes it an optimal country to enter the American market through.

A minimum of two shareholders and three directors are required for Panama company formation. Corporate directors are permitted. The shareholders and directors can be of any nationality. In addition, a President, Treasurer and Company Secretary is required for Panama company formation. Following Panama company formation, shareholders and directors details are available for public viewing at the Mercantile Registry.

Panama is negatively perceived in international business. As well as labeled a tax-haven, Panama is poorly ranked at 94th in the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

3.

Due to the high level of bureaucracy in the country, doing business in Panama is a time consuming and tedious process. According to the World Bank's Doing Business 2008 Survey, Panama is the world's 65th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

4.

Panama is negatively ranked as the world's 50th freest economy in the Heritage Organisation’s 2007 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.