Company Formation in Panama: How to Set Up Your Corporation Easily
Company formation in Panama is one of the most popular options for entrepreneurs, investors, and digital nomads seeking tax efficiency, confidentiality, and easy international business operations. Panama’s legal structure offers flexibility and low maintenance costs, making it a global hub for business incorporation.
In this guide, our English-speaking Panama lawyers explain everything you need to know about setting up a company in Panama — from the legal requirements to the step-by-step registration process.
The process of company formation in Panama attracts entrepreneurs worldwide because it combines simplicity, tax efficiency, and confidentiality. Whether you plan to trade internationally or protect your assets, forming a Panama corporation gives you a stable and flexible base for global business.
Starting a business in Panama offers international entrepreneurs a strategic gateway between North and South America. With a stable economy, U.S. dollar currency, and strong legal protection, Panama has become a preferred destination for foreign investment and offshore services.
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Why Choose Panama for Your Company Formation?
- 100% foreign ownership allowed — no local partner required.
- Tax advantages: only Panamanian-sourced income is taxed.
- Strong banking system and stable U.S. dollar economy.
- Fast incorporation: companies can be registered in 2–3 days.
- Confidentiality: shareholder and director privacy protected by law.
- Benefits of Company Formation in Panama
- Setting up a company in Panama gives you access to an internationally recognized business hub. The country’s legal framework supports privacy, quick registration, and 100% foreign ownership—making company formation in Panama one of the easiest ways to expand your business presence offshore.
Benefits of Company Formation in Panama
Setting up a company in Panama gives you access to an internationally recognized business hub. The country’s legal framework supports privacy, quick registration, and 100% foreign ownership—making company formation in Panama one of the easiest ways to expand your business presence offshore.
Types of Companies in Panama
The most common legal structure is the Sociedad Anónima (S.A.), also known as a Panama Corporation. Other options include Limited Liability Companies (LLC), Private Interest Foundations, and branches of foreign entities.
1. Panama Corporation (S.A.)
The Panama corporation is often referred to internationally as an IBC company (International Business Company). It provides flexibility for global operations and asset protection while maintaining full ownership privacy and minimal reporting requirements.
This structure offers limited liability and full separation between personal and corporate assets. It is ideal for international trade, holding assets, and offshore investments.
2. Limited Liability Company (LLC)
Suitable for small businesses or partnerships that need operational flexibility and shared ownership.
Requirements to Incorporate a Company in Panama
The Panama company formation process is fully supported by clear corporate regulations and modern registration systems. With the help of a registered agent, you can incorporate remotely without visiting Panama in person.
To start the Panama company incorporation process, you’ll need the following:
- Three directors (can be foreigners or locals)
- At least one shareholder
- Company name approved by the Public Registry
- Registered agent (Panamanian lawyer)
- Minimum capital: USD 10,000 (no deposit required)
Every Panama corporation must appoint a board of directors consisting of at least three individuals (President, Secretary, and Treasurer). These can be Panamanian citizens or foreign nationals. Nominee directors can also be used for privacy purposes.
Meeting the requirements for Panama company registration is straightforward with legal assistance. All procedures are handled by a licensed lawyer, ensuring compliance with Panamanian corporate law.
You can reach our legal team instantly through WhatsApp — it’s quick, private, and convenient.
Step-by-Step Process for Company Formation in Panama
Our legal team manages every stage of your Panama company registration, ensuring that your documents comply with all government and Public Registry requirements. From choosing the company name to obtaining the tax ID, we make incorporation fast and fully remote.
- Choose the company name and check availability.
- Prepare Articles of Incorporation with your Panamanian lawyer.
- Register the company at the Public Registry.
- Obtain the RUC (Tax ID) and business license if operating locally.
- Open a corporate bank account in Panama or abroad.
The entire process usually takes 2–5 business days with our law firm.
After your company is incorporated, the next step is opening a bank account in Panama. Most local and international banks require certified copies of your company documents, proof of business activity, and identification for all directors and shareholders. Our law firm assists clients with the entire bank compliance process.
Costs of Incorporating a Company in Panama
The total cost of company formation in Panama usually includes government fees, registered agent services, and annual maintenance. Our firm provides transparent pricing for incorporation packages with no hidden charges.
The total cost of company formation in Panama depends on legal fees, registered agent services, and government expenses. On average:
| Service | Estimated Cost (USD) |
|---|---|
| Legal and registration fees | $900 – $1,200 |
| Annual maintenance fees | $300 – $600 |
| * Optional bank account opening | $300 – $500 |
All fees can be managed remotely with digital documentation and notarized signatures
Tax Advantages of Panama Companies
Panama follows a territorial tax system — meaning only income generated within Panama is taxable. International operations, offshore earnings, and foreign-held assets are exempt from taxation.
This makes Panama one of the most favorable jurisdictions for offshore company formation worldwide.
Establishing an offshore company in Panama allows investors to manage international operations efficiently while benefiting from the country’s territorial tax system. Income generated outside Panama remains fully exempt from local taxes.
Through offshore Panama company formation, foreign investors can legally manage assets and transactions outside Panama without being subject to local taxes. This structure is widely used for trading, consulting, and property holding.
Start Your Panama Company with Legal Assistance
Our Panama lawyers specialize in company formation and immigration services for international clients. We provide full support in English to ensure a smooth, compliant, and fast incorporation process.
Prefer to reach us by email?
If you are considering company formation in Panama, our English-speaking lawyers can guide you through every step—from name registration to obtaining your tax ID and corporate bank account.
Our team is happy to assist you personally and answer any questions about your case within one business day.
Contact our English-speaking lawyers today to start your Panama company incorporation and receive a personalized consultation.
Frequently Asked Questions
Is it legal for foreigners to open a company in Panama?
Yes. Foreign nationals can own 100% of a Panamanian corporation (S.A.) and manage it from abroad.
Do I need to travel to Panama to incorporate a company?
No. The process can be completed remotely through a licensed Panamanian lawyer and a registered agent.
How long does Panama company formation take?
Typically 2–5 business days once the company name is approved and documents are signed.
What are the basic requirements to incorporate?
Three directors, at least one shareholder, approved company name, a registered agent (lawyer), and a standard authorized capital (often USD 10,000; no deposit required)
Are there tax benefits for international operations?
Yes. Panama uses a territorial tax system—foreign-sourced income is not taxed in Panama.
Can I open a corporate bank account with a Panama corporation?
Yes, subject to bank due diligence (KYC), business activity evidence, and ID documents.
Soruces:
Public Registry of Panama (Registro Público)