Panamanian corporations may be organized by two or more persons of legal age (who may be Panamanians or foreigners), as well as juridical entities, for any lawful purpose(s) for which the incorporators subscribe at least one share each, of the authorized capital stock of the corporation being formed.
Panama is recognized worldwide not only for its tax benefits but also for its legal stability. Law 32, which governs Panamanian Corporations, is a clear example of this, having been enacted in 1927 and remaining in force until today.
Foreign corporations may have offices and undertake commercial and economic activities in Panama after having filed with the Commercial Registry the deed of incorporation, the copy of the last balance sheet together with the statement of the capital stock to be used in the country and the certificate of incorporation of the corporation issued and authenticated by the Panamanian Consul in that country.
The meeting of the Shareholders’ Meeting shall be called in writing and in the name of the Chairman, Vice-Chairman or the person authorized by the Articles of Incorporation. A record shall be made of the reason for the meeting and the time and place of the meeting.
Two or more companies may merge to form a new company by signing an agreement stating the terms of the merger. This agreement must be submitted to the shareholders of each of the constituent companies to vote their approval and then be registered in the Mercantile Registry.