Company Registration in Panama

Yes, there is no need to travel to Panama, and the process is the same for non-residents. Documents are signed online, a Panamanian notary certifies the Pacto Social and the registered agent files it with the Registro Público. All we need from you is a passport, proof of address and a short description of your business for KYC checks.

You may only need to travel for the account, if a bank asks for an in-person meeting. We will tell you before incorporation, and if you do not plan to travel, we will find an option that opens remotely.

There are three packages: Start at US$1,450, Corporate at US$2,300 and Full service at US$3,450. Government fees, the notary and the first Tasa Única are included in every package. Start covers the registered agent for incorporation only, while Corporate adds the agent and address for a year, mail forwarding and deadline reminders, which is why most clients choose it.

Full service adds director or shareholder services for a year, a power of attorney with an apostilled company set, and account support through to activation with free resubmission. The scope and price are fixed in the contract; see the package comparison.

Incorporation itself takes 4 days once the documents are checked: the notary certifies the Pacto Social and the agent files it with the Registro Público. Including document preparation, it usually takes about a week. After that it depends on the account: a payment provider opens in 1-2 weeks, an EMI in 2-4 weeks and a bank in up to 8 weeks.

If you need payments urgently, we open a payment provider account and apply to an EMI or bank in parallel.

Most often it is a payment provider or an EMI in Europe or the UK: they review the company faster and work with USD, EUR and other currencies. Panamanian banks rarely onboard companies owned by non-residents, so a bank account is usually opened in another country. We match the option to your passport, business and payment regions.

The bank will ask for an apostilled company set, a recent extract from the Registro Público confirming the company status, a business description, contracts or invoices and proof of source of funds. See the account opening section.

Panama taxes only Panama-source profits, at 25%, which is why a company that does business abroad is usually called an offshore company. If the company trades or provides services to clients outside Panama, that income is not taxed in Panama, even if the money arrives in a Panamanian bank account. Companies with only foreign income do not file a tax return.

From 2027, Law 526 applies. If the company is part of an international group and receives foreign dividends, interest, royalties or capital gains, that income is taxed at 15% unless the company has economic substance in Panama. Holding structures should be reviewed before incorporation; see the tax section.

Most likely, yes, but that depends on your tax residence, not on Panama. Panama does not withhold tax on dividends from a company with no operations in the country, but dividends are usually taxable where you live.

Many countries also have controlled foreign company (CFC) rules: you may need to declare your interest in a foreign company, and its undistributed profits can be taxed even if no dividends are paid. We recommend reviewing the structure with a tax adviser in your country before you incorporate.

The public Registro Público shows the Pacto Social, the directors, officers and the registered agent. Shareholders are generally not listed in the public register. The agent files the beneficial owners with a private register under Law 129 of 2020, which only the competent Panamanian authorities can access.

This does not make you anonymous: the bank checks every owner when opening an account, and under the CRS standard account information is shared with the countries Panama exchanges data with.

From the second year, the company pays the US$300 Tasa Única, renews its registered agent and address, sends the agent a copy of its records for the previous year by 30 April and keeps the beneficial ownership register up to date. If the company has Panama-source income or falls under Law 526, a tax return is added.

We quote the ongoing cost before you pay for registration, so you know your budget for the first two years. The compliance calendar is in the section above.

A late Tasa Única carries a US$50 surcharge. After three consecutive unpaid years, the company is suspended. It can be reinstated within one year by paying the arrears, a US$1,000 penalty and a US$25 registry duty. Otherwise, the company may be dissolved.

Failing to send records to the agent carries fines from US$5,000, and the agent must resign. A company left without an agent for more than 90 days is also suspended. That is why we remind clients on our compliance service of every deadline in advance.

A private interest foundation (Fundación de Interés Privado) is set up under Law 25 of 1995 to hold and pass on assets, most often for succession. Its assets are separate from the founder’s personal assets, it has no shareholders, and it is run by a council of three individuals or one company, with an optional protector who holds a veto.

A foundation cannot carry on commercial activity, so trading and services need an S.A. A common set-up is a foundation that owns the shares of a company that runs the business. The minimum foundation capital is US$10,000, with a US$350 government fee on formation and US$400 a year. We register foundations too and will quote the cost after a consultation.