About Panama
Panama's geographic position has made it a shipping and commercial exchange center since colonial times. Following the construction of the Panama Canal, a vibrant service industry dedicated to the international business community developed to become the country’s primary source of economic activity. Political stability, the use of the U.S. dollar as legal tender, the absence of exchange controls, and the enactment of special laws have been instrumental in promoting the growth of this service industry. As a result, a considerable body of Panamanian law has been enacted with international interests in mind.
In the financial arena, special attention is given to the following areas:
- Corporations
- Banking
- Securities Market
- Private Interest Foundations
- Duty free zones, and
- Export processing zones
The Merchant Marine Registry Act (1925), the General Corporation Law (1927), the Free Zone Law (1948), the Banking Law (1970), the Trust's Law, the Stock Market Law (1999), the Export Processing Zone Law (1992), the Tourism Development Incentives Law (1994), and the Private Foundation Law (1995) have all laid the groundwork for the following achievements:
- Panama boasts the highest number of registered vessels under its flag than any other nation.
- Panama is a leading international financial center in which more than 110 banks operate with assets in excess of US $27 billion.
- Panama is home to the Colon Free Trade Zone, which lays claim to the highest volume of commercial goods traded in the western hemisphere.
- Panama is the registered domicile for over 300,000 corporations, due to its simple and affordable incorporation procedures, a minimal local tax, an absence of corporate capital requirements, and the flexibility allowed for designated corporate activities.
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In addition, Panama is a democratic republic. There is a distinct division between the three branches of government. The executive branch comprises the President of the Republic and the ministers. The legislative branch consists of the Legislative Assembly, whose members are elected by direct popular vote. The judicial branch is independent of the other branches of state and consists of the Supreme Court of Justice, the tribunals, and the courthouses.
One third of Panama’s 2.8 million citizens live in Panama City, the capital of the Republic, where most of the economic activity is concentrated. The official language is Spanish; however, English is also widely spoken as a second language in the principal cities.
About Panama 
