Panama is a popular destination for company registration due to its favorable business environment and strategic location. Known for its robust offshore services sector, Panama offers a straightforward and efficient process for incorporating businesses, making it attractive for entrepreneurs and multinational corporations.
One of the key advantages of registering a company in Panama is its territorial tax system, which means that income generated outside of Panama is not subject to local taxation. This feature, along with no minimum capital requirements and the absence of exchange controls, makes it an appealing jurisdiction for international business operations.
Panama’s strategic location, with the Panama Canal serving as a crucial maritime route, enhances its appeal for businesses involved in international trade. The country’s free trade zones, such as the Colon Free Zone, provide additional incentives like tax exemptions and customs benefits. Moreover, Panama has signed numerous double taxation avoidance treaties, further enhancing its attractiveness for global investors.
Manimama ensures a seamless company registration process in Panama. Trust us to provide expert guidance and support, so your business can thrive from day one in Panama. Start your journey with confidence, knowing you have the best team by your side.
Legal Opinion about Panama as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama, CEO
“Panama offers a business-friendly environment with significant tax advantages, efficient incorporation procedures and robust legal protections, making it a preferred jurisdiction for company registration and international business operations. Manimama is ready to help you with business registration in Panama”.
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Company Formation
- Company formation
- Registered address for the 1st year
- Annual accounting requirement bookkeeping
Annual Services
- Company renewal and registered address
- Annual Government Tax
- Mandatory Financial Beneficiary Report
Other Services
- Set of corporate documents (certified/apostille)
- Nominal service for 1 year
- Offshore banking
Key Numbers about Panama as a Jurisdiction for Company Formation
3directors for a company |
up to 2 weekstimeline for a company registration |
nominimum paid up share capital |
0%corporate income tax (CIT) for IBCs (outside of Panama) |
up to 25%personal income tax (PIT) |
novalue added tax (VAT) for IBCs |
Set up Your Company in Panama in Several Steps
Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
Step 2. Company registration
- Verification and reservation of the company name
- Facilitating the notarial process for the company's official registration
- Incorporating the company's data into the Panama Public Registry
- Obtaining the Certificate of incorporation from the Panama Public Registry, Memorandum and Articles of Association
Requirements for Company Formation in Panama
Before deciding to set up a new company in Panama, read the information below to understand the characteristics of an International Business Company (IBC):
Shareholders: the company is required to have at least 1 shareholder.
Director: a Panama company is administered and conducted by a Board of Directors, which requires a minimum of 3 directors. A company must have a president, secretary and treasurer, who are appointed by the Board of Directors. The usual practice is to appoint the same persons to the positions of directors/officers. For example, a director-president, a director-secretary and a director-treasurer.
Company secretary: yes.
Minimum share capital: there is no minimum capital requirement.
Registered agent: the company must have a registered agent in Panama.
Liability: members are only liable to the extent of their participation.
Accounting: the Panamanian IBC must maintain accounting records. In addition, it is necessary to file annual reports with the Panama Public Registry.
Taxes in Panama
- The standard rate is 25%.
- But IBCs are exempt from income tax if the profit was earned outside of Panama.
- The only tax in Panama that IBCs are subject to is an annual franchise rate of $300 (a flat rate).
- between $0 to $11,000 annually - you will not pay a tax
- between $11,001 and $50,000 - you're taxed at 15% on all income above $11,000
- over $50,000 - you'll pay $5,850 in income tax + 25% on all income over $50,000
The PIT rates are as follows:
IBCs don’t have to pay VAT.
Double taxation avoidance agreements in Panama: Barbados, Czech Republic, France, Ireland, Israel, Italy, Luxembourg, Mexico, Netherlands, Portugal, Singapore, South Korea, Spain, Qatar, Unit Arab Emirates, United Kingdom, Vietnam.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in Panama:
Expertise in Regulations of Panama
- 1. Manimama has an in-depth understanding of Panama's legal and regulatory framework.
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of Panama.
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
-
What is the first step to registering a business in Panama?The first step is to choose a business structure and select a unique business name that complies with Panama’s naming requirements.
-
Do I need a registered agent in Panama?Yes, all businesses registered in Panama must have a registered agent.
-
Do I need a physical office in Panama?While not required for all business types, having a physical office can be beneficial for certain business operations and compliance purposes.
-
Are there any tax benefits for registering a company in Panama?Yes, Panama offers various tax incentives, including a territorial tax system where income generated outside of Panama is not subject to local taxes.
-
Do I need to keep accounting records in Panama?Yes, all companies must maintain proper accounting records, which can be kept outside Panama but must be available to present to authorities if requested.
-
Do I need to hire local directors or officers?No, Panama does not require local directors or officers; however, a minimum of three directors is required for corporations.
-
What is the minimum capital requirement to register a company?There is no minimum capital requirement for most business entities in Panama.
-
Can I register my business online?Yes, certain steps of the registration process can be completed online, but engaging a registered agent is highly recommended for efficiency and compliance.
-
What languages are accepted for company registration documents?All official documents must be in Spanish or translated into Spanish by a certified translator.
-
Where can I find additional resources and assistance?Additional resources and assistance can be found through the Public Registry of Panama.
Client Feedbacks
“Thanks to the Manimama team, my legal issues were resolved at the highest level”.
“My cooperation with Manimama OU was extremely positive”.
"The whole process was stress-free thanks to their professional work and individual approach”.
Manimama as the Best Solution for Your Company Formation in Panama
By choosing our company formation service in Panama, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Panama and pave the way for your business success.
Our Latest Legal Researches
Сompany registration in the Costa Rica: Legal aspects and advice
If you plan to start a business in Central America, Costa Rica is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Costa Rica, and is ready to share its results and help you choose the right jurisdiction. What are the main advantages…
A Lawyer in the Era of Digital Transformation: How Technology Are Reshaping Legal Services
Digital Platforms for Legal Services: Accessibility at Your Fingertips Gone are the days of lengthy searches for a lawyer, in-person meetings, and piles of paperwork. Today, all it takes is accessing a digital platform to resolve your legal issue in just a few minutes. The advancement of technology has automated routine processes, simplified communication, and…
FinmadiG and MiCA: New horizons for crypto assets in Germany
What Does FinmadiG Change? FinmadiG introduces the Kryptomärkteaufsichtsgesetz (“KMAG”) — the Crypto Markets Supervision Act—and amends more than 20 regulatory acts. According to the government, this consolidated approach simplifies legislation and administration by aligning German law with several critical European Union (EU) frameworks. Through harmonization with the European Union MiCA, the European crypto-asset market becomes…
Connect with our experts
By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.
Contact Us
If our proposal is intriguing, we kindly request to complete the form provided below to learn more. By doing so, we guarantee access to a comprehensive commercial personalized offer, featuring up-to-date prices and detailed information.
We look forward to the opportunity of collaborating and delivering exceptional solutions that meet and exceed expectations of any Client.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.