Company formation in Panama

At a glance

Entity

Sociedad Anónima (S.A.) — corporation (the S.R.L. LLC is also available)

Corporate tax

25% on Panama-source profits; 0% on foreign-source income (territorial)

Incorporation time

~3–5 business days (1-day express available)

Minimum capital

None; typical authorised capital US$10,000

Resident director

Not required (three directors, any nationality); a resident agent — a Panamanian attorney — is mandatory

Audit

Not required for foreign-source companies (no audit or accounts filing)

Remote set-up

Yes; via power of attorney to the resident agent, with home-country documents apostilled

Government fee

~US$250 registry incorporation fee plus US$300 annual franchise tax (as of 2026); capital-registration tax scales with authorised capital

Best for

Territorial tax on foreign-source income. Well suited to holding companies and international trading structures.

The process

1. Appoint a Panamanian resident agent (a licensed attorney) and clear the proposed company name
2. Draft and notarise the articles of incorporation (pacto social); supply UBO and KYC documentation
3. Register the public deed at the Public Registry and pay the capital-registration tax and US$300 franchise tax
4. Resident agent files the beneficial owner in the private UBO registry within 15 business days (Law 129 of 2020)
5. Obtain a tax ID (RUC) if operating locally, then open a bank account (separate, stringent KYC — allow several weeks)