The Republic of Panama is located in Central America and forms the narrow isthmus that links North and South America. Panama is famous for its canal, which joins the Atlantic and Pacific Oceans. Because of the international nature of the Panama Canal, the country's population of 2.9 million has excellent telecommunications, airline links and a sophisticated banking and financial system as well as a major free port.
The country has a legal system based on its constitution. Its economic growth in the last ten years has been remarkable.

The U.S. Dollar is the legal tender in the Republic of Panama and its official language is Spanish, but English is also widely spoken.

According to Panama's Corporation Law 32 of 1927, any two persons of any nationality may create corporations. The normal procedure in the formation of a Panama corporation is that the Panamanian lawyers acting for the client form the corporation and it is therefore not necessary for the client to go to Panama nor to sign any documents relating to the formation of the corporation. We will provide the necessary information upon request subject to due diligence having been accomplished successfully.

With the exception of the "annual franchise tax", which is a not an income tax, Panama corporations with no income arising from operations within the territory of the Republic of Panama are not subject to taxation in Panama. We recommend that the advice of a professional tax consultant be sought before the purchase of an offshore company.