Many companies incorporate in Panama because they want the benefits of working in a jurisdiction that protects their privacy and doesn't charge excessive taxes. Liberal laws, however, do not mean that Panama lets companies do anything that they want without following any regulations.
It just means Panama takes a hands-off approach that lets businesses prosper. Still, you must follow certain regulations while establishing legal incorporation in the jurisdiction.
Panama laws can impose strict fines on companies and individuals that refuse to follow regulations. More often than not, though, these laws apply to banks and organizations charged with protecting offshore corporations.
Failing to follow regulations can also mean that the Panama jurisdiction rejects your legal incorporation application.
This makes it sensible for groups to hire Panama lawyers who are experts in this field. That way, they get the legal incorporation services that they need to take advantage of Panama's business-friendly climate without unintentionally breaking the law.
Of course, this business-friendly climate also means that Panama has plenty of laws that protect your offshore business from needless interference.