Registering a Company in Panama – 2025 Step-by-Step Guide

Get your company registration in Panama completed in as little as 7 business days with our end-to-end legal guidance.

If you’re considering registering a company in Panama this guide is for you.. With a stable economy, favorable laws, and business-friendly taxes, Panama offers one of the fastest, most efficient ways to start a business in Latin America. This guide covers the essentials, from benefits and costs to structures and legal requirements, in clear, simple terms.

Why You Should Register Your Company in Panama

Panama has become one of the most attractive jurisdictions in Latin America for entrepreneurs, investors, and global businesses. Registering your company here is not just about opening a company or busines, it’s about gaining access to an international hub with long-term advantages:

  • Strategic Location – Panama connects North and South America and offers easy access to global markets through the Panama Canal and Tocumen International Airport.
  • Stable Economy – With one of the region’s fastest-growing economies and the U.S. dollar as legal tender, Panama provides security and predictability for your business.
  • Business-Friendly Taxes – Panama follows a territorial tax system, meaning you only pay taxes on income earned within Panama. Foreign-source income remains tax-free.
  • Fast Incorporation – Companies can be registered in as little as 7 business days, making it one of the quickest setups in the region.
  • Confidentiality and Asset Protection – Panamanian law ensures strong corporate privacy and flexible ownership structures for both locals and foreigners.
  • 100% Foreign Ownership Allowed – Unlike many countries, Panama places no restrictions on foreign shareholders.
  • Reputation and Access – A Panamanian company is widely recognized and can open international bank accounts, engage in global trade, and hold investments worldwide.

With these benefits, Panama stands out as a premier jurisdiction for startups, holding companies, investment vehicles, and international operations.

Types of Companies You Can Register in Panama

Choosing the right structure depends on your business goals. Panama’s corporate law allows various formats:

  1. Panama Corporations (Sociedad Anónima)
    Ideal for most international companies in Panama. Provides limited liability and flexible shareholding.
  • Minimum of 3 directors (can be foreigners)
  • Shareholders’ names remain private
  • Can operate locally or as an offshore corporation in Panama

  1. Panama Private Interest Foundation
    Used for wealth management and asset protection. Unlike companies, foundations do not conduct commercial activities but can hold assets globally.
  2. Panama Holding Company
    Designed to manage shares of other companies, both in Panama and abroad.
  3. Overseas Management Company Panama
    A structure often used for Panama offshore company formation to handle operations outside the country.
  4. Panama Limited Liability Company (Sociedad de Responsabilidad Limitada)
    Common for small to medium-sized businesses and partnerships.
  • Requires at least two partners (individuals or legal entities)
  • Liability is limited to the amount of capital invested
    More straightforward governance than corporations

  1. Branch of a Foreign Company
    Allows an existing company registered abroad to operate in Panama under the same name and corporate structure.
  • Must register with the Panama Public Registry
  • Requires the same compliance as a locally formed company

  1. Shelf Company
    A pre-registered company available for immediate use.
  • Speeds up the setup process
  • Maintains legal standing from its original registration date

Common Uses for Panama Companies

A Panama IBC (International Business Company)—often simply called a Sociedad Anónima (S.A.) under Panamanian law—is the most common company type used by both local and foreign investors. It offers limited liability, fast incorporation, and flexibility for international operations, making it a preferred choice worldwide.

Typical uses of a Panama IBC include:

  • E-commerce and Online Businesses – Operate global online platforms, payment gateways, or digital service companies with ease.

  • International Trading and Shipping – Take advantage of Panama’s strategic location and logistics infrastructure to manage imports, exports, and maritime trade.

  • Real Estate Holding – Own and manage property in Panama or abroad under the company name for privacy and succession planning.

  • Offshore Asset Protection – Protect global assets from political, legal, or financial risks through a Panama corporate structure.

  • Wealth and Estate Planning – Combine an IBC with a Panama Private Interest Foundation for effective wealth management, inheritance planning, and tax efficiency.

With its flexibility, a Panama IBC can serve as both a business vehicle and a strategic financial tool, making it one of the most versatile corporate structures available in Latin America.

Taxation and Reporting Obligations in Panama

  • Foreign-sourced income is exempt from Panamanian tax; only income generated in Panama is taxable.
  • All companies must pay an annual franchise tax to remain in good standing.
  • Companies must maintain accounting records for at least five years, even if operating offshore.
  • Certain industries may require additional tax filings or licensing.
  • Our tax advisors ensure you remain compliant while taking advantage of every legal tax benefit.

Basic Requirements for Panama Company Formation

Before starting your application, you’ll need to prepare specific documentation and meet Panama’s legal criteria for incorporation.

Please note that all foreign documents must be translated and apostilled in order to apply for the visa. Our legal team will guide you during this process from document gathering until the visa application.

Key requirements include:

  • A minimum of three directors (individuals or legal entities, of any nationality)
  • A registered office address in Panama
  • Appointment of a licensed resident agent in Panama (lawyer)
  • Articles of Incorporation drafted and notarized
  • Payment of government registration fees

Process for Company Registration in Panama Step by Step

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Hire a Lawyer

By law, it is mandatory to hire a Panamanian attorney to act as your resident agent. This professional will prepare and submit your incorporation documents, ensure compliance with Panama company law, and represent you before the Public Registry.

Draft and Notarize the Articles of Incorporation

These outline your company’s name, purpose, share structure, and governance.

File with the Commercial Register

Your company becomes legally recognized once filed in the Panama business register.

Obtain a Business License

Also known as the Notice of Operation, required for any local business activity.

Register for Taxes

A tax ID is necessary for invoicing and compliance.

Open a Corporate Bank Account

Essential for transactions and operations.

Dedicated Tax Advisors to Maximize Your Benefits

Our tax advisors help your Panama company stay compliant while maximizing every legal benefit, from smart planning to efficient corporate structures.
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Our tax team simplifies complex regulations so you can focus on growing your business with confidence. See how we’ve supported others with their accounting and tax needs.

 

Benefits of Creating a Company in Panama

Foreign investors choose Panama for these reasons:

  • Low cost for starting a company in Panama compared to other jurisdictions.
  • No restrictions on foreign ownership.
  • Strong offshore corporations in Panama network for asset protection.
  • Access to multinational companies in Panama for partnerships.
  • Confidential shareholder and director information.

Costs and Timeframe to Register a Company in Panama

While fees vary, here’s a general estimate:

  • Legal & registration fees: Starting around $1,200–$1,800.
  • Annual maintenance: Registered agent, corporate tax, and license renewals.
  • Timeframe: Incorporation can be completed in under a week; bank accounts may take longer.

Many entrepreneurs and investors have already completed their Panama company registration with us. Here’s what they have to say about the process and results.

Real Feedback from Our Panama Incorporation Clients
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Daniel

UK

“Applied for the Golden Visa in Panama and had a great experience. The lawyer Agroup connected me with was sharp, efficient, and knew exactly what to do. Everything was handled professionally. Thank you.”
 
Melissa Panama golden visa review
Melissa

USA

“I applied for permanent residency in Panama and a friend recommended Agroup. They were professional, responsive, and really knew the visa process well.”
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Gordon

Canada

“This firm helped me a lot with my visa process. Clear communication, no surprises, and they really made the process easy.”

Frequently Asked Questions

1. How long does it take to get a company registered in Panama?

With proper documentation, you can register a company in Panama in as little as 3–5 business days. Banking setup may take an additional 1–3 weeks.

Foreigners can own 100% of a company in Panama. The process involves hiring a resident agent, drafting incorporation documents, registering with the commercial register, and obtaining necessary business permits.

The cost to start a company in Panama typically ranges from $1,200 to $1,800, depending on the structure and services needed. Annual maintenance fees apply.

No. Most Panama company formation processes can be handled remotely through your corporate service company and registered agent.

5. What companies are in Panama?

Panama is home to major local and international businesses such as Banco General, Copa Airlines, Nestlé, Ricardo Pérez Toyota, Cervecería Nacional, and the Panama Canal Authority, along with global banks, logistics firms, and multinational corporations.

Yes. A $3,000 monthly budget allows for a very comfortable lifestyle in Panama, covering housing, utilities, healthcare, dining, and leisure, especially outside the most expensive neighborhoods of Panama City.

The leading industries are transportation and logistics, construction, and financial services, supported by Panama’s strategic location and role as a global trade hub.

Ready to start your Panama company in just 7 days?

Contact us today for a confidential consultation with our legal and tax experts.