Panama
Panama is located at a strategic point in Central America situated on the Isthmus connecting South and North America. It is bordered by Costa Rica and Columbia with the Caribbean Sea to the north and the Pacific Ocean to the south. A former Spanish Colony, Spanish is the official language of the country but English is widely used in urban areas and is used in international business and commerce.
The economy of Panama is the fourth largest in Central America with the fastest growing economy and largest per capita consumer. Panama has had a democratic government since 1990. This has produced a strong and stable government with little risk of reverting back to military rule due to the intervention and continuing support of the USA.
Panama offers some of the worlds most flexible and favourable incorporation laws in the world. There are approximately half a million corporations and foundations in Panama making it the second most popular offshore jurisdiction in which to incorporate a company, coming second to Hong Kong. Panama also has the second largest international distribution and free trade centre in the world, again second only to Hong Kong and there are over 150 International Banks located in Panama, second to Switzerland.
With an economy so dependent on services and particularly centered on the financial sector the need for strong governance is essential. In the 2004 World Bank Report on the Observance of Standards and Codes (ROSC) it was stated that Panama had made impressive progress since the late 1990’s with new security and banking laws and high quality reporting that has come in line with international best practices. However despite new legislation aimed at increasing compliancy and legitimacy Panama still retains a high degree of privacy which is vigorously imposed and protected by constitutional law. Revealing confidential information to a third party is a crime punishable by prison.
Panama has emerged as a legitimate jurisdiction in which to incorporate and offers plenty of advantages and benefits.