Panamanians and foreigners are equal before law. There is no distinction between foreing and Panamanian companies regarding the formalities for their constitution. Neither are foreigners restricted in the type of business they enter, except for retail business., which is limited to Panamanian nationals, and the local communications media in which the capital must be entirely Panamanian. This may not be a problem since a Panamanian company (Corporation) can be formed to operate any business of your interest. Paid-up capital or minimum capital is not required and shares can be issued “to bearer”. The cost of forming a corporation may be around US$1,200.00, there is an annual tax of US$300.00. Investors who wish to establish an industrial enterprise can benefit from various incentives getting locations on Colon Free Zone and the Export Processing Zones.

In the city of Panama we have the Casco Antiguo, an area with a high historic value because of its Spanish and French legacy from the colonial era. In this important sector, properties can be acquired to be restored, thus benefiting from an encouragement law which will exempt you from taxes.