Panama
Company Formation in Panama
Republic of Panama — Registro Público de Panamá
Overview
Panama is the premier financial, maritime, and trading crossroads of the Americas, boasting Latin America's most sophisticated international banking hub with over 60 commercial and investment banks. Operating on a strict territorial tax system, Panama taxes only income derived from commercial transactions conducted physically within the national territory of Panama. All profits earned from foreign operations, cross-border trading, international consulting, and overseas assets are subject to 0% Panamanian corporate income tax. Panama is world-renowned for two flagship corporate vehicles: the Panama International Business Corporation (Sociedad Anónima - S.A.) and the Panama Private Interest Foundation (Fundación de Interés Privado), which offers statutory asset protection comparable to a Liechtenstein Stiftung or Anglo-Saxon trust. Panama uses the US Dollar as official legal tender, has no exchange controls, and offers the popular Friendly Nations Visa and Qualified Investor Visa providing pathways to permanent residency.
Why Choose Panama
Territorial tax system — 0% tax on all foreign-sourced revenue and overseas investments
US Dollar is the official legal tender with zero exchange controls or currency risk
Premier Latin American international banking center hosting 60+ domestic and global banks
Panama Private Interest Foundation available for world-class estate planning and asset protection
Friendly Nations Visa and Qualified Investor Golden Visa pathways for global founders
Shareholder names are not published on the public register; nominee directors permitted
Colon Free Trade Zone — the second largest free trade zone in the world
100% remote company formation without traveling to Panama
Business Entity Types
| Entity | Ownership | Directors | Capital | Tax | Best For |
|---|---|---|---|---|---|
| Sociedad Anónima (S.A.) | 100% | 3 (President, Secretary, Treasurer) | USD 10,000 authorized (no paid-in required) | 0% tax on foreign-source income; 25% on domestic Panama income | International trading, maritime, IP holding, consulting, e-commerce |
| Private Interest Foundation | 100% | 3 council members | USD 10,000 | 0% tax on foreign-source income and asset transfers | Asset protection, wealth succession, holding family real estate and portfolios |
Step-by-Step Formation Process
Public Deed of Incorporation
1–2 daysDraft corporate constitution and notarize before a Panamanian Notary Public.
Public Registry (Registro Público) Filing
2–3 daysRecord the public deed with the Registro Público de Panamá.
Annual Franchise Tax & RUC
1–2 daysObtain corporate tax ID (RUC) and pay initial annual franchise tax ($300).
Beneficial Ownership Register (Law 129)
1–2 daysRecord beneficial ownership information with the Private Superintendency Registry.
Corporate Banking Setup
3–6 weeksEstablish corporate multi-currency accounts with Panamanian or international banks.
Costs & Fees
| Government / License Fee | USD 600+ |
| Our Service Fee | USD 2,000 – 4,000 |
| Annual Renewal | USD 700+ |
Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.
Get Custom QuoteBanking
Panama's International Banking Center hosts over 60 commercial, private, and investment banks. Panama banks provide robust USD accounts and sophisticated trade finance facilities.
Recommended Banks
Tax Overview
Panama applies a strict territorial tax principle: income generated from activities outside of Panama is 100% tax-exempt. Annual government franchise tax (Tasa Única) is $300 flat.
Visa & Residency
Friendly Nations Visa
Permanent residencyFor citizens of 50 qualifying nations who incorporate a business or invest
Qualified Investor Visa (Golden Visa)
Permanent residency in 30 days$300,000 real estate or $500,000 bank deposit