PANAMA LAWYERS

ADMINISTRATIVE LAW.
Body of law created by administrative agencies in the form of rules, regulations, orders, and decisions.

ADOPTION.
Legal process pursuant to state statute in which a child’s legal rights and duties toward his natural parents are terminated and similar rights and duties toward his adoptive parents are substituted. In Panama, adoptions are regulated by the Family Code and by the International Convention on Protection of Children and Cooperation in respect of International Adoption, signed at The Hague on May 29, 1993, which was ratified by the Republic of Panama.

APOSTILLE.
An addition or annotation made in the margin of a writ. Legalization of documents pursuant the Hague Convention of 1961, on legalization foreign public documents, which was ratified by the Republic of Panama.

ARBITRATION.
The reference of a dispute to an impartial (third) person, chosen by the parties to the dispute, who agree in advance to abide by the arbitrator’s award issued after a hearing at which both parties have an opportunity to be heard. Arbitration is regulated in Panama by the Decree-Law No.5 dated July 5 1999, where the general regime on arbitration, conciliation and mediation, is established.

ARTICLES OF INCORPORATION.
Basic instrument on the incorporation of a business, which is filed at the Public Registry for its registration, and upon such registry the company will have effect before third parties.

ATTORNEY.
In the most general sense this term denotes an agent or substitute, or one who is appointed and authorized to act in the place or stead of another. In Panama all attorneys shall have University diploma in Law and Political Sciences and be authorized by the Supreme Court of Justice in order to exercise their profession

CAPITAL.
Accumulated goods, possessions, and assets, used for the production of profits and wealth. Owner’s equity in a business. Often used equally to mean the total assets of a business.

CIVIL LAW.
The body of law concerned with civil or private rights and remedies.

CLASSIFICATION SOCIETY.
In the shipping industry, classification societies are non-governmental organizations or groups of professionals, ship surveyors and representatives of offices that promote the safety and protection of the environment of ships and offshore structures. As an example, Lloyd’s Register (England), and Bureau Veritas (Belgium).

COMMERCIAL LAW.
A phrase used to designate the whole body of laws and jurisprudence applicable to the rights, interaction, and relations of persons engaged in commerce, trade, or mercantile pursuits.

CONTRACT OF AFFREIGHTMENT.
Is a contract with a ship/owner to hire his ship, or part of it, for the carriage of goods.

COPYRIGHT.
An intangible, incorporeal right granted by statute to the author or originator of certain literary or artistic productions, whereby he is invested, for a limited period, with the sole and exclusive privilege of multiplying copies of the same and publishing and selling them. In the Republic of Panama the law regulating Copyrights and related rights is Law No.15 of 1995.

DIVIDENDS.
Are the payments designated by the board of directors of a corporation to be distributed pro-rata among the outstanding shares/shareholders.

HOLDING COMPANY.
A company that confines its activities to owning stock in, and supervising management of, other companies.

INTERNATIONAL LAW.
The law which regulates the interaction of nations; the law of nations.

INVENTION PATENT.
A grant made by the government to an inventor, conveying and securing him the exclusive right to make, use and sell his invention for a period of years. The registry of an invention patent in Panama is regulated by Law No.35 of May 10, 1996, and is filed before the General Directorate for the Registry of Industrial Property of the Ministry of Commerce and Industries, known as DIGERPI in its Spanish acronym form.

JOINT STOCK COMPANY.
An association of individuals established for purposes of profit, possessing a common capital contributed by the members composing it, such capital being commonly divided into shares where each member possesses one or more, and are transferable by the owner. In Panama the “Sociedades Anónimas,” which are joint stock companies or corporations, are regulated by Law No. 32 of February 26, 1927.

MORTIS CAUSA.
By reason of or in contemplation of death.

NATURALIZATION.
The process by which a person acquires nationality after birth and becomes entitled to the privileges of citizenship.

OFFSHORE CORPORATIONS.
An Offshore, International Company is commonly set up in a tax haven jurisdiction, where there are no corporate or personal income taxes, capital gains taxes, reporting requirements, or restrictions on company employment policies. Panama is a well-known offshore jurisdiction, and its law on corporations, Law No.32 of 1927, has been used as a model by other modern offshore jurisdictions.

PATRIMONY.
Is the total mass of existing or potential rights and liabilities attached to a person for the satisfaction of his economic needs; patrimony is always attached to a natural or juridical person.

PRIVATE INTEREST FOUNDATIONS.
Private Interest Foundations are legal entities (hybrids between a Trust and a Corporation), used mainly for the protection of assets. They cannot undertake commercial activities as a regular day- to-day objective, and may not be profit-oriented. Their main attraction is that any and all assets legally owned by them cannot be attacked by creditors or lawsuits, being unseizable. Private interest foundations are regulated in Panama by Law No. 25 of June 12, 1995.

REAL ESTATE.
Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as light structures, plumbing and heating structures, or other such items which would be personal property if not attached. At this time, Panama is one of the most attractive places in which to invest in real estate.

SANITARY REGISTRY.
Is the authorization that the Ministry of Health gives a company for the import and/or commercialization of food and medical products or devices, after the corresponding filing of a petition is made by an attorney and the proper evaluation is completed.

SHARES.
Are units of stock representing ownership in a corporation. Corporations in Panama are regulated by Law No. 32 of 1927.

TRADEMARK.
The term trademark includes any word, name, symbol, or device or any combination thereof adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others. The trademark registry is filed before the General Directorate for the Registry of Industrial Property of the Ministry of Commerce and Industries, knows as DIGERPI in its Spanish acronym form, and it is regulated by Law No. 35 of May 10, 1996.

TRUST.
An arrangement whereby property is transferred with intention that it be administered by a trustee for another’s benefit. Law No. 1 of 1984, regulates trusts in Panama.

VESSEL REGISTRATION.
The listing of a vessel at a customs house under the name of the country whose flag it flies, though such flag is not necessarily indicative of the nationality of the owner. The Panamanian registry of vessels was created by Law No.8 of 1925, and the application for vessel registry in Panama is filed through an attorney before the General Directorate of Merchant Marine of the Panama Maritime Authority.

VISA.
An endorsement made in a passport that allows the bearer to enter or remain for a determined period of time in the country issuing it. In the case of foreigners who wish to remain in Panama, they will have to apply for a visa before the National Directorate of Immigration and Naturalization of the Ministry of Government and Justice.

WORK PERMIT.
A work permit is a generic term for a legal authorization which allows a person to take employment. It is most often used in reference to instances where a person is given permission to work in a country where one does not hold citizenship. In Panama, the Ministry of Labor and Labor Development is the issuing authority.

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