Opening a Company in Panama
Opening a company in Panama means access to one of the world's most established and respected jurisdictions for international corporate planning. An offshore company in Panama territorial tax system : income generated outside of Panama is completely exempt from local taxes—a feature that makes Panama the natural choice for holding companies, asset protection vehicles, and global business operations.
The most common corporate form is the Sociedad Anónima (SA) , governed by Law No. 32 of February 26, 1927 , and subsequent amendments, including the reform of the Código de Comercio (Decree-Law No. 5 of 1997). The Panamanian SA combines limited liability for shareholders, flexibility in governance, and confidentiality guaranteed by corporate secrecy ( corporate veil ).
At Studio Panama Italia , we don't sell pre-packaged packages. Our company formation service is reserved for qualified clients with significant assets or business structures requiring real economic substance and high-level legal coordination. We have been operating as an authorized Resident Agent in Panama since 2015, with over 3,000 companies incorporated.
Why open a company in Panama with us?
- Territorial taxation: zero tax on foreign-source income — profits generated outside Panama are not taxed
- Confidentiality guaranteed: shareholders not registered in the Public Registry; legal use of nominee in the Board of Directors
- Incorporation entirely remotely: physical presence in Panama is not required to open a company.
- Residency requirement: Panamanian company is required to obtain residency in Panama via the Italy-Panama Treaty.
- Instant bankability: open a corporate account at Panamanian multinational banks, even remotely.
- Pro-crypto and pro-DAO legislation: Corporate regulations updated in 2024 for blockchain, AI, and tokenization
How to Open a Limited Company in Panama
Incorporating a Sociedad Anónima (SA) in Panama is a straightforward and quick process. With Studio Panama Italia, from receipt of payment and documentation to delivery of the completed company takes an average of 10–25 business days. The entire process is conducted remotely: there's no need to travel to Panama.
The process requires only one document: a copy of the first two pages of the shareholder's passport. We handle the drafting of the articles of association ( Escritura Pública ), registration in the Panama Public Registry , appointment of the Board of Directors, and issuance of the general power of attorney to the beneficial owner (UBO).
| Voice | Detail |
|---|---|
| Corporate form | Sociedad Anónima (SA) — free names: Corp, Corporation, Inc, GmbH, etc. |
| Legal basis | Ley No. 32 of 1927; Código de Comercio (DL n. 5/1997, art. 5) |
| Board of Directors | The legal minimum is 3 directors; as a general rule, we configure 5 (President, Secretary, Treasurer + 2 Vocals) |
| Shareholders | Minimum 1, natural or legal person, resident or non-resident |
| Share capital | Standard $10,000 divided into 100 shares of $100 each — no deposit required |
| Actions | Registered (not bearer) shares; held by the Resident Agent. Confidential, non-public information |
| Nominees | Legal as directors without operational powers; always with KYC/UBO and compliance |
| Prosecutor's Office | General Power of Attorney to the UBO/owner for full operations on accounts and activities |
| Public Register | The names of the directors are public; the details of the shareholders and the UBO are not disclosed |
| Taxation | Territorial: only income from Panamanian sources is taxable |
| Residence | It is a mandatory requirement for residency in Panama (Italy-Panama Treaty / Friendly Nations Visa) |
| Electronic signature | Allowed for corporate resolutions and documentation |
| Redomiciliation | Allowed both entry and exit from Panama |
Establishment costs, requirements and annual deadlines
Cost transparency is a core value for us. Here's a complete overview of company formation costs and ongoing obligations for a Panamanian company.
| Voice | Detail |
|---|---|
| Establishment costs | USD 1,650 – 1,950 (with nominees and options) |
| Delivery times | 10–25 working days from receipt of payment and documents |
| Shipping documents | DHL / FedEx / UPS home delivery |
| Remote opening | Yes — physical presence in Panama is not required |
| Resident Agent | Mandatory every year (fee separate from the constitution) |
| Tasa Única annual | USD 300/year to the Public Registry; prolonged arrears result in suspension of corporate rights |
| RUC (DGI) | Mandatory tax registration and data updating at the Dirección General de Ingresos |
| Accounting | Accounting records must be kept and maintained for 5 years (at the Resident Agent or designated office); annual closing date is December 31 |
| Penalties for non-payment | Suspension of fees, interest, and penalties; reactivation with a penalty of up to USD 1,000+ |
| Company closure | Only if you are safe (zero debts with DGI, Resident Agent, Registry) |
| Licenses | Offshore operations: No license required. Local operations: Licenses and internal taxes apply |
| Language and foreign use | Documents in Spanish; translation and apostille available for international use |
Why Open a Company in Panama: Strategic Advantages
Panama is an international financial and commercial center strategically located in the Americas. Political stability, business-friendly legislation, an attractive tax regime, and a developed banking sector—with over 70 banks operating in the country—have made Panama one of the most popular jurisdictions in the world for establishing offshore companies and international business ventures.
Panamanian companies enjoy global recognition and respect. Approximately 40% of the world's merchant fleet operates under the Panamanian flag, confirming the solidity and reliability of the regulatory framework. Panamanian corporations are among the most widely used in the world as holding companies, for real estate registration, asset protection, and international trade.
- Holding company: Centralized control of global assets and stakes in companies in Belize , Seychelles , Nevis , Hong Kong and the Cook Islands
- Asset protection: legal shielding of family or business assets through corporate veil
- International governance: multi-jurisdictional operations in full banking compliance
- Family Privacy: Protecting Beneficiary Data in Risk Scenarios for Family Members' Safety
- Real estate ownership: purchasing and managing property in the company's name with limited personal liability
- Global business activities: e-commerce, trading, merchant accounts, financial services, international consulting
Opening a Company in Panama and Territorial Taxation
The main tax advantage of a Panamanian company lies in the principle of territorial taxation : only Panamanian-source income is taxable. All income generated outside Panama—whether remitted to the country or not—is completely tax-free.
A Panamanian company is tax resident if it is incorporated under Panamanian law or if its management and effective control ( place of effective management ) are located in Panama. Companies conducting business exclusively outside of Panama are exempt from all local taxes, including income tax, capital gains tax, withholding taxes, and stamp duty on share transfers.
| Tax | Rate | Notes |
|---|---|---|
| Corporate income tax (local source) | 25% of net income or 1.17% of gross income (whichever is greater) | Only on income from Panamanian sources |
| Income from foreign sources | 0% — Exempt | Not taxed regardless of remittance |
| Capital gains | 10% (local source); 0% (foreign source) | If deriving from main activity: ordinary rate |
| Dividends (local source) | 10% withholding tax | Exemption for companies with exclusively foreign activities |
| Dividends (foreign source / export) | 5% withholding tax | 0% if activity is entirely offshore |
| Interest to non-residents | 12.5% withholding tax | Local bank interest: exempt |
| Royalty to non-residents | 12.5% withholding tax | Only to the extent of operations carried out in Panama |
| VAT (ITBMS) | 7% | Applicable on local goods and services |
| Inheritance tax | Non-existent | Not provided for by Panamanian law |
Reporting requirements for offshore companies: There is no requirement to file accounts, annual returns, or tax returns, provided the company does not conduct business or hold assets in Panama. The Resident Agent (us) is required to maintain the share register, a copy of shareholder identification, and accounting records for at least 5 years.
Corporate veil and front men: corporate confidentiality
Panamanian companies benefit from the corporate veil guaranteed by law. Incorporating a company in Panama allows you to keep the details of shareholders and beneficial owners confidential: this information is not disclosed in the Public Registry and is not accessible online via platforms such as OpenCorporates or PanaData.
The names and addresses of directors and officers are included in the Articles of Incorporation and are publicly available in the Registry. However, Panamanian law permits the legal use of nominee directors in the Junta Directiva to ensure the anonymity of the beneficial owner.
The nominees we use are members of our firm and have no operational power over the company. Upon incorporation, a general power of attorney is granted exclusively to the beneficial owner (UBO). The nominees simultaneously sign the letters of resignation, which remain in the client's possession for use at any time.
Legal structure of the Panamanian public limited company
Panamanian SA is governed by Law No. 32 of 1927 and the Code of Commerce. Here is the complete structure.
- Country code: PA
- Legal system: civil law
- Liability: limited to the amount of the respective shareholdings
- Share capital: Standard USD 10,000 in 100 shares of USD 100 each; may be unpaid; denominated in any currency
- Shareholders: minimum 1, natural or legal persons, resident or non-resident; details are not publicly available
- Directors: minimum 3 (President, Treasurer, Secretary); they can be individuals or companies; non-resident directors and nominee directors are permitted.
- Secretary: mandatory; can be a natural person or a company; the director can also act as secretary
- Registered office: Physical address registered in Panama required
- General meetings: not mandatory; if held, they can be held anywhere in the world and by proxy.
- Redomiciliation: entry and exit permitted
Difference between a Panamanian public limited company (SA) and a Panamanian limited liability company (LLC)
The main difference between a Panamanian SA and an LLC is the transparency of the ownership structure. In a Sociedad Anónima (SA) , shareholders are not registered in the Public Registry: share certificates remain in the custody of the Resident Agent and the bank, guaranteeing the owner's anonymity. The SA issues shares and requires a minimum of one shareholder.
In a limited liability company (SRL) , however, the identity of the partners must be disclosed to the Public Registry. An LLC is composed of a minimum of two partners and does not issue shares, only participations. The primary requirement for an LLC is the transparency of its corporate structure, making it suitable for family businesses or contexts where confidentiality is not a priority.
For the vast majority of international clients, the SA is the recommended corporate form due to the flexibility, asset protection, and confidentiality it offers.
Panamanian Companies and Forex Trading or Crypto Trading Activities
A Panamanian company is perfectly suited to hold accounts for forex trading, crypto trading , and operations on international exchanges and financial platforms. We work closely with major crypto exchanges and forex platforms such as Binance, Kraken, Gemini, OKX, Bitstamp, eToro, DEGIRO, TD Ameritrade, IG, and Interactive Brokers.
Our experience in opening companies compliant with the KYC/AML requirements of these platforms is well-established and proven. The cost for a fully compliant Panamanian company to operate on exchanges and platforms is USD 2,850 , and the same company can serve as a requirement for Panamanian residency .
Artificial Intelligence, Crypto, DAOs, and Tokenization in Panama
Thanks to corporate law updated in 2024, Panama now has the most advanced legislation in the world regarding DAOs, cryptocurrency, and artificial intelligence . Panamanian companies are the most digitally advanced in the world: opening a company in Panama to manage AI-related businesses, blockchain, or to conduct ICOs and DAOs is not only recommended but desirable.
Panama is attracting a growing community of tech professionals who, by obtaining residency, are laying the foundation for a new technology hub in the heart of Central America. This pro-tech climate, combined with territorial taxation and immediate bankability, makes Panama the ideal jurisdiction for startups and digital businesses.
Panamanian corporation and US LLC: operational synergies
Panamanian corporations work perfectly with American LLCs . Both structures can be combined to maximize their benefits: the US LLC for billing to American customers and access to US payment gateways, and the Panamanian SA for offshore operations, asset protection, and large-scale banking.
American LLCs can serve as shareholders and directors of a Panamanian corporation and vice versa, further enhancing the structure's privacy.
LLC Delaware | LLC Wyoming | LLC New Mexico | LLC Florida
When it is not a good idea to open a company in Panama
A Panamanian company is not suitable when the beneficial owner is a tax resident in a high-tax country (such as Italy) and intends to use it to invoice primarily customers in that country. In this case, there is a risk of corporate investiture (Article 73, paragraph 3, of Presidential Decree No. 917/1986 in Italy), with severe penalties.
A Panamanian company, on the other hand, is perfectly legitimate and tax-efficient for those who have transferred their tax residence to Panama or another country with territorial taxation, for those who operate in genuine international trade, and for those who require holding or asset protection vehicles with real economic substance.
5-step opening process with Studio Panama Italia
Analysis and choice of the structure
We analyze the client's profile, corporate purpose, and optimal structure (standard limited company, limited company with nominees, limited company for trading/crypto, or LLC). We verify the availability of the chosen name in the Public Registry.
Drafting of articles of association and registration
We prepare the articles of incorporation, appoint the Board of Directors (minimum three directors), and register the company with the Panama Public Registry. Processing time: 10–25 business days.
Power of Attorney and complete documentation
We issue general power of attorney in favor of the beneficial owner (UBO), letters of resignation for nominees (if used), the share register, and the minutes book. Shipping via international courier.
RUC and tax registration
We register the company with the Directorate General of Income (DGI) to obtain the RUC (Panamanian tax identification number), which is required for local operations and opening bank accounts. Learn more: RUC Panama .
Opening a company bank account
We assist in opening corporate bank accounts at multinational Panamanian banks. Accounts can also be opened remotely with full KYC. Learn more: Account in Panama .
Ready to open your company in Panama?
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