Panama Company Formation
Offshore Pro Group provides full Panama company formation support for entrepreneurs and investors. We can handle company formation in Panama using a local Registered Agent’s services and help you prepare corporate documents.
You can incorporate a Panama Sociedad Anónima (S.A.) remotely within 6–8 business days after your KYC package has been approved. Panama companies benefit from the Territorial Tax System, which means that income you generate abroad is generally outside Panama corporate tax when the structure is properly documented.
Panama Company Formation Packages
Our Panama company formation services are available in three package levels: basic incorporation, professional Panamanian directors, or full support with corporate bank account opening.
Standard
For clients who need a Panama S.A. and the core corporate file.
Includes:
Panama S.A. registration
Spanish notarized Articles of Incorporation
government filing fees
Certificate of Incorporation from the Public Registry
English translation
apostille for 4 documents
courier deliveryProfessional
For clients who need an additional confidentiality layer. It includes everything in the standard Panama company formation package, plus professional Panamanian directors.
Includes:
everything in Standard
services of three professional Panama directors
corporate governance setup
director-related documentation supportPremium
For clients who want to form a company in Panama and move directly toward banking.
Includes:
everything in Professional
support with opening a corporate bank account
bank KYC and transaction profile assistance
bank onboarding guidanceKey Benefits of Starting a Business in Panama
Starting a business in Panama can be useful for international projects that need a stable legal base, flexible corporate governance, and USD-based operations.
0% Tax on Foreign Income
Under Panama’s Territorial Tax System, income generated outside Panama is generally not subject to Panama corporate income tax. Panama-source income remains taxable.
High Level of Confidentiality
Shareholder information is not entered into the public corporate file. UBO data is handled through compliance channels and the Private Registry of Beneficial Owners (RBF).
No Currency Controls
Panama uses the US dollar widely and does not impose currency controls on legitimate international payments.
Simple Corporate Governance
A Panama Corporation is associated with flexible share capital and non-resident ownership. Starting a company in Panama as a foreigner is an excellent option if you properly manage the structure.
Stable Business Climate
Panama offers a favorable business environment supported by international trade flows, political stability, and the Panama Canal.
Fast Remote Incorporation
You can incorporate without a personal visit. Offshore Pro Group coordinates the process until your corporate documents are issued.
Panama Corporation: Sociedad Anónima, S.A. Overview
The main legal form used for international business is the Panama Corporation, also known as Sociedad Anónima / S.A., Inc., or Corp. It is a share-based corporate vehicle used for trade and investment, asset holding, consulting, e-commerce, and ownership planning.
Unlike some other business entities, a Panama S.A. is familiar to banks, counterparties, and service providers. A Panamanian company may be fully foreign-owned, and shareholders’ liability is generally limited to their shareholdings.
Recognizable Corporate Form
A Panama Corporation is a classic S.A. structure that can be used for international trade, holding assets, consulting, e-commerce, investment, and ownership planning.
Foreign Ownership & Limited Liability
The company may be fully owned by non-residents. Shareholders’ liability is generally limited to their shareholdings, which makes the structure practical for international owners.
Board of Directors and Officers
A Panama S.A. requires a board and mandatory officer roles, such as President, Secretary, and Treasurer. Professional directors may be used if you need confidentiality and governance support.
Share Capital and Registered Agent
Standard share capital is often USD 10,000. The company must also have a Registered Agent and registered office in Panama to remain properly maintained.
Shelf vs. Newly Incorporated Panama Company
Clients sometimes ask whether Panama incorporation should be done through a shelf company or a newly incorporated S.A. In 2026, a new company is usually the cleaner option.
Newly Incorporated Company
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A new company in the Republic of Panama gives you a transparent history, a fresh name, clear ownership records, and fewer compliance questions.
Shelf Company
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A shelf company may be considered if company age is essential. However, for most clients, new Panama company incorporation is safer and easier for due diligence.
Expert recommendation: choose a new Panama S.A. unless there is a clear commercial reason to buy a shelf entity.
Panama Territorial Tax System Explained
Panama’s tax system is based on territorial principles. Panama generally taxes income sourced inside Panama, while foreign-source income may fall outside Panama corporate income tax.
| Type of Income | Panama Tax Treatment | Home-Country Notes |
|---|---|---|
Foreign-source trading income | Generally 0% in Panama | CFC and residence rules may apply |
Income from Panama clients | Taxable in Panama | Local accounting may be required |
Capital gains from Panama assets | May be taxable | Review asset type and transaction |
Dividends | Depends on source and structure | Check withholding and home-country tax |
Income from business outside of Panama | Often outside Panama tax | Must be documented correctly |
CFC and residence rules may apply
Local accounting may be required
Review asset type and transaction
Check withholding and home-country tax
Must be documented correctly
The territorial tax system does not remove tax obligations in the owner’s country of residence. CFC rules, personal taxation, reporting, CRS, and FATCA may still apply.
Corporate Legislation and Legal Framework
Panama corporate law is built around Corporation Law 32 of 1927, which remains the core framework for S.A. formation, shares, directors, and administration.
Key legal requirements include:
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Articles of Incorporation. Your articles of incorporation are prepared in Spanish, notarized, and filed with the Public Registry of Panama.
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Registered Agent & Office. The company must also have a local Registered Agent and registered office in Panama.
Panama is still a recognized jurisdiction for offshore structures, but modern incorporation requires KYC and beneficial ownership identification.
Our 4-Step Panama Company Incorporation Process
The Panama company formation process is handled remotely and coordinated through our team and local partners.
Consultation and Name Check
We review your goals, company name, ownership structure, and need for directors or banking support. The name is checked in the Public Registry of Panama.
KYC and Document Preparation
You provide passport copies, proof of address, business description, source-of-funds details, and other due diligence documents.
Filing with the Panama Public Registry
The Articles are submitted to the public registry through local professionals. The registration process usually takes 6–8 business days after the file is ready.
Document Delivery and Support
As soon as the approval is received, we arrange apostilles and internal registers, as well as courier delivery if needed. If you select banking support as well, we move to account onboarding.
Corporate Governance: Directors, Officers and Shares
A Panama S.A. usually requires one shareholder and three directors. The shareholder may be an individual or legal entity, resident or non-resident. The board must include a minimum of three directors.
| Role | Minimum | Requirements |
|---|---|---|
Shareholder | 1 | Individual or legal entity; non-resident permitted |
Directors | 3 | Minimum of three directors |
President / Secretary / Treasurer | 3 roles | Mandatory officer roles; may be held by directors |
Share capital | USD 10,000 | Standard capital; par value or no par value |
Bearer shares | Permitted | Subject to mandatory immobilization with a Registered Agent |
Individual or legal entity; non-resident permitted
Minimum of three directors
Mandatory officer roles; may be held by directors
Standard capital; par value or no par value
Subject to mandatory immobilization with a Registered Agent
Bearer shares are permitted, but they must be immobilized with an authorized custodian or Registered Agent. Registered shares are usually simpler for banking and compliance.
Compliance, Beneficial Ownership and Record-Keeping
Panama now combines corporate confidentiality with modern transparency rules. Directors appear in the public registry, while shareholder and UBO information is not published in the same way.
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Beneficial ownership data is reported through the private registry of beneficial owners under Law 129 of 2020. This register is not public, but it is available to the Registered Agent and competent authorities.
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Proper company management also includes accounting records, document retention, annual franchise tax, and communication with the Registered Agent.
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Panama companies should keep accounting records and supporting documents for at least 5 years.
Banking Support and Multi-Bank Strategy
Opening a bank account in Panama is a strategic decision. You may choose a Panamanian bank, an international offshore banking institution, or an EMI, depending on your business model and ownership structure.
Panamanian Banks
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A local account may suit a company with clear business activities and transparent ownership.
International Offshore Banks
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A corporate bank account may also be opened with international banks outside Panama. This may work better for multicurrency operations or several payment jurisdictions.
Payment Systems (EMIs)
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EMIs are associated with flexible international payments and fast onboarding; still, be prepared for compliance review.
Redomiciliation and Corporate Maintenance Services
Panama can also be used for continuation, structural changes, and long-term maintenance. Offshore Pro Group helps clients who want to set up a company in Panama, move an existing company, update the structure, or complete voluntary dissolution.
Redomiciliation to or from Panama
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Redomiciliation may allow a foreign company to continue into Panama, or a Panama company to continue into another jurisdiction, where both legal systems allow it.
Corporate Changes
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We assist with changes of directors, shareholders, officers, corporate details, powers of attorney, and internal records.
Maintenance and Dissolution
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Our Panama offshore company formation support also covers annual renewals, Registered Agent coordination, franchise tax payment, document updates, and voluntary dissolution.
Why Choose Offshore Pro Group for Panama
Offshore Pro Group provides offshore company formation support if you need more than a basic registration procedure. Your Panama structure will be aligned with ownership and tax residence. Our experts will also ensure Registered Agent coordination and long-term maintenance, so your offshore business will start with a clean setup.
Track Record Since 2009
We have supported international clients with offshore structuring since 2009, including incorporation and banking, as well as renewals and maintenance.
Panama Expertise
Our team works with local Panama professionals and coordinates the process through a Registered Agent.
Transparent Fees
We provide clear package pricing before the process starts, so you know what you pay for. Some services come at an additional cost.
Full Maintenance
Our experts support annual renewals and franchise tax coordination, as well as document updates and corporate changes.
Start Your Panama Company Today
Request a Panama company formation consultation with Offshore Pro Group to discuss your goals, ownership structure, banking plans, and expected activity. We will review your case, prepare a document checklist, and recommend the right business setup for Panama.
Our team provides registration, nominee director coordination, banking support, annual maintenance, document updates, and other services in Panama on a turnkey basis.
Panama Company Formation FAQ
How long does it take to establish a Panama company?
You can usually complete a Panama S.A. incorporation within 6–8 business days after your KYC package has been approved. The timeline may be extended, though, if you submit incomplete documents or your structure is complex enough to require additional review.
Do I need to travel to Panama to set up my company?
No. You can handle the whole incorporation process remotely through Offshore Pro Group and local professionals. A bank may later request a video call, certified documents, or personal attendance for account onboarding.
What type of company is most recommended in Panama?
The most common structure is the Sociedad Anónima / S.A., also called Inc. or Corp. It is used for holding assets, international trade, consulting, e-commerce, and investment.
Can I reserve a company name in advance?
Yes. The proposed name is checked with the Public Registry of Panama before filing. It is best to prepare several name options in case the first one is unavailable.
How many directors and shareholders are required?
A Panama S.A. requires at least one shareholder and a board with a minimum of three directors. Directors and shareholders may be non-residents and may be individuals or legal entities.
What are the mandatory officer roles in a Panama S.A.?
A Panama S.A. usually appoints a President, Secretary, and Treasurer. The same people who act as directors can often also hold officer positions if the records are prepared correctly.
Are bearer shares still permitted in Panama?
Yes, you can issue bearer shares if you adhere to strict immobilization rules. Registered shares are usually easier for bank onboarding and compliance.
Are directors and shareholders publicly available?
Directors are recorded in the Public Registry of Panama. Shareholders are not usually listed in the same public register. Beneficial owner data is handled through the RBF and compliance channels.
Is a Panama company completely tax-free?
No. Panama applies a territorial tax system. Foreign-source income may be outside Panama corporate tax, while income generated in Panama can be taxable. The rules of your residence country may also apply.
What are the annual maintenance requirements?
A Panama company must usually pay annual franchise tax of about USD 300, maintain a Registered Agent and registered office, keep accounting records, and renew support services.
Does my Panama company need annual tax returns?
It depends on activity. A company with Panama-source income or local operations may have filing duties in Panama. Companies with foreign activity should still keep accounting records.
Do I still have tax obligations in my country of residence?
Yes. Panama incorporation does not remove tax duties in your country of residence. You may need to report foreign companies, accounts, dividends, distributions, or CFC income.
Can I open a bank account for my Panama company remotely?
In selected cases, yes. You can choose a Panamanian bank, an international bank, or an EMI for your banking. Approval depends on several factors, including transaction geography and risk profile.
What documents are needed for corporate bank onboarding?
A bank usually asks for incorporation documents, Articles of Incorporation, registers, UBO documents, passport copies, proof of address, business plan, contracts, source-of-funds evidence, and expected transaction profile.
Can a foreign company be redomiciled to Panama?
Yes, if the laws of both jurisdictions allow continuation. The company usually needs corporate approvals and good standing documents.