Incorporation

Article 1.
Two or more persons of full legal age, of any nationality, even if not resident in the Republic of Panama, are able to form a corporation for any legal purpose in accordance with the regulations prescribed by this law.

Requirements for creation of a Corporation in Panama

Article 2.
The persons who wish to form a corporation will sign a contract which must contain the following:

1.  The names and residences of all parties to the contract;

2.  The name of the corporation shall not be the same as or similar to any other corporation that might in any way cause confusion;
The name shall include a word, phrase, or abbreviation that indicates it is a corporation and that distinguishes it from a natural person, or other type of business organization;
The name of the corporation may be expressed in any language;

3.  The purpose or general aims of the corporation;

4.  The amount of capital stock and the number of and nominal value of shares between which its divided; if the corporation issues shares without a nominal value, then the declarations mentioned in Article 22 of this law;
The amount of capital stock and the nominal value of the shares may be expressed in the currency of the Republic of Panama, in the legal currency of any other country, or in both;

5.  If there are several types of shares, the number of each type and their designations, preferences, voting rights and privileges, and restrictions or requirements of each type of share.  Or, the stipulation that such designations, preferences, voting rights and privileges, or restrictions or other requirements are able to be determined by majority vote of interested shareholders or by majority vote of the directors;

6.  The number of shares each contract signatory agrees to take;

7.  The legal address of the corporation and the name and address of its agent in the Republic of Panama, who may be a legal entity;

8.  The term of the contract;

9.  The number of the directors that may not be fewer than three, including their names and addresses;

10.  Any other legal clauses upon which all signatories agree.