About the Republic of Panama
The Republic of Panama was formed in 1903 when it seceded from Colombia. The country is located in Central America on an isthmus that attracted the U.S. Army Core of Engineers in 1904. The Army Core of Engineers planned to establish a canal that would make it easier for boats to travel between the east and west coasts of North America. The Panama Canal was completed in 1914.
The Panama Canal has had a significant influence on how the Republic of Panama approaches business regulations. As a truly international country that deals with organizations all over the world, Panama created loose regulations that would let offshore businesses perform as they saw fit. Since the country earns most of its GDP from the canal tolls, it simply made sense for Panama’s government to open its doors to more businesses.
Today, the Republic of Panama has the strongest government and economy of any country in Central America. The country’s stability means that businesses and individuals do not have to worry about rogue governments overthrowing the current regime. The Republic of Panama even uses the U.S. Dollar further ensuring that the economy and government remains stable.
Many individuals and organizations around the world have found that offshore services in Panama give them access to business strategies that help them protect their assets and privacy. Since the Republic of Panama allows offshore companies to operate without many regulations, organizations have found that they are more successful when they incorporate within Panama rather than their countries of residence