Legal system: civil law (continental law). Corporate regulation is carried out through the
Public Registry of Panama, which ensures legal certainty, transparency, and predictability of corporate procedures for international business.
Currency: United States Dollar (USD) – the official legal tender. The use of USD significantly reduces foreign exchange risks and simplifies international settlements, banking operations, and payment infrastructure.
Taxation model: territorial taxation principle. The source of income is the key determining factor – profits generated outside Panama are generally not subject to Panamanian taxation, provided the structure is properly established and substantiated.
Corporate structure: Sociedad Anónima (S.A.), with ordinary and/or preferred shares. This structure allows flexible allocation of rights, economic interests, and corporate governance, making it suitable for holding, trading, and contractual business models.
Reporting and compliance: financial statements are not publicly filed; however, proper accounting records and corporate documentation must be maintained and retained. This is critical for banks, auditors, and tax compliance purposes.
Confidentiality: directors and officers are typically disclosed in the public registry, while shareholder information may remain non-public. At the same time, beneficial owners must be disclosed to banks and payment providers under KYC/AML requirements.
Regulators and authorities:- Registro Público de Panamá – corporate registration and public records;
- Dirección General de Ingresos (DGI) – tax authority.
- Additional compliance requirements are commonly imposed by banks and corporate service providers.
Annual mandatory payments: a fixed annual government fee (Tasa Única) applies as the standard maintenance payment required to keep a Panamanian company in good standing.