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Establishing a company in Panama is the first step in beginning commercial operations in the region. As many foreign businesses are aware, Panama offers a great jurisdiction for business large and small. The region has an attractive fiscal system, free trade zones and thriving service sector. Additionally, the strategic importance of the Panama Canal cannot be overlooked. These factors create the ideal conditions to form a corporation. It is no surprise that Panama is the registered domicile for over 500,000 corporations.