What is the current corporate profit tax for Panama companies?

Panama executed a territorial tax regime applied for both resident and non-resident companies, under which no corporation tax is levied on non-Panamanian sourced income including corporate income, capital gains, withholding tax or stamp duty.

What are maintenance obligations for a Panamanian Corporation?

A company has to maintain its corporate structure and a local registered address in Panama. There is no need to file an annual return or tax return given that the company only carries out its business outside the jurisdiction. Whilst there is no requirement to file audited accounts with the authorities, a company is required to keep financial records, which reflect the financial position of a company. For further details on Panama's annual compliance requirements, please refer to our ComplyMate.

Why is Panama considered one of the most attractive destinations for offshore company formation?

Panama is a Central American country uniquely positioned as a gateway between the Atlantic and Pacific Oceans via the Panama Canal. Known as a major global logistics and financial hub, Panama boasts a dynamic economy driven largely by its services sector, including banking, trade, and transportation. The country enjoys political stability with a democratic presidential system and offers an attractive environment for international business through its open market policies, free trade zones, and territorial tax system. This has enabled steady economic growth, supported by a strong legal framework and modern financial infrastructure.Renowned for confidentiality, tax efficiency, and ease of access, Panama remains a top choice for offshore company formation, offering both security and flexibility for global business ventures.

What is the restricted operation of a Panama corporation?

Cannot undertake the business of Panama offshore banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity that would suggest an association with the banking, finance, fiduciary, or insurance businesses.

What types of company formation can be used for international trading and investment?

Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are also used.

What is the minimum number of directors/shareholders/officers required?

Corporation laws demand at least one shareholder and three directors to form a company in Panama. Both corporations and natural persons may act as directors. They may be of any nationality and need not to be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors.

Are personal details of directors/shareholders publicly disclosed?

Name and address of company directors would appear on the Public Registry upon company registration. However, the details in relation to shareholders are not made public.

Is a company secretary mandatory?

A company secretary must be appointed, who may be a natural person or body corporate. The company secretary may be of any nationality and need not to be a resident of Panama.

What is the minimum registered capital?

The minimum issued capital is either one share of no par value or one share of par value. The usual authorized share capital is US$ 10,000 divided into 100 common voting shares of US$ 100 each or 500 common voting shares of no par value; the capital may be expressed in any convertible currency.

What classes of shares are permitted?

Non-voting shares, preferred shares and registered shares. Bearer shares can be issued but no-par-value and bearer shares must be fully paid when issued. The registered agent must keep the bearer shares certificate in safe custody and must notify the Registrar that the shares have been issued.

What are the top legal uses for incorporating an offshore company in Panama?

Incorporating an offshore company in Panama provides key legal benefits that appeal to many international entrepreneurs and investors. Tax advantages: Non-resident companies are exempt from tax on income earned outside Panama, enabling efficient tax planning. Confidentiality: Panama maintains strong corporate privacy and banking secrecy laws to protect ownership information. Asset protection: The legal framework offers solid protection for company assets and limits members’ liabilities. Political and economic stability: Panama provides a stable government, a growing economy, and a secure business climate. Ease of setup: Incorporation can be completed remotely, with no physical presence required, typically within a few weeks.

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Company Formation

Panama

Panama
Company Formation Through Corporate Solutions

Q: Can a foreigner start a business in Panama?

Yes. Foreigners can register a corporation in Panama and start their business. Besides, residents of any country can be directors, shareholders, or officers of a Panama company.

Panama company formation with professional incorporation services from BBCIncorp.

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HSBC

Standard Chartered

UOB

CIMB

Payoneer

+ more partners

HSBC

Standard Chartered

UOB

CIMB

Payoneer

+ more partners

HSBC

Standard Chartered

UOB

CIMB

Payoneer

+ more partners

Panama Company Formation Through Corporate Solutions

Panama Company Formation Service Packages

Non-resident Corporation

basic

US$1699

Get Started

Company Formation

Unlimited Name Availability Check
Document Preparation and Filing
Company incorporation process
01 year Company Secretarial service
01 year Registered Agent & Local Registered Address
All Government fee in 01 year
Digital corporate documents

* This Package includes everything for a foreigner to set up a new Panama Non-resident Corporation from the beginning** All-in renewal fee at US$1,499

standard

US$2099

Get Started

Everything in the Basic package

Open A Bank Account

One-time fee for application of one bank
Bank account introduction for any bank in the supported list
Certificate of Incumbency (if required)

premium

US$2399

Get Started

Everything in the Standard package

Premium Banking Support

One-time fee for application of up to 5 banks OR until the account is opened, whichever comes first
Consulting on suitable alternatives if the first application is not approved
Remote bank account opening
Fast response even on weekends
Frequent updates on the bank account opening process

basic

standard

premium

basic

US$1699

Get Started

Company Formation

Unlimited Name Availability Check
Document Preparation and Filing
Company incorporation process
01 year Company Secretarial service
01 year Registered Agent & Local Registered Address
All Government fee in 01 year
Digital corporate documents

* This Package includes everything for a foreigner to set up a new Panama Non-resident Corporation from the beginning** All-in renewal fee at US$1,499

Refund Guarantee

We refund your money in full for any Panama company formation services that we cannot deliver.

Read our policy

Panama Offshore Company Formation For Global Operations

Complete support for every step of your company formation in Panama and more.

Cross-border corporate service solutions

Extensive global
banking connections

Integrated online
Client Portal

Dedicated ongoing compliance officer

Our Panama Company Formation
Process

Starting a business in Panama as a foreigner effortlessly and efficiently.

Place order

You do

Provide details through form

We do

Verify and confirm order

Make payment

You do

Make payment for service

We do

Issue payment receipt

Proceed KYC

You do

Upload required documents

We do

Review documents for filing

Receive docs

You do

Access and download company files

We do

Provide incorporation paperwork

KYC documents checklist

Compliance gate

What you'll need to complete eKYC verification

For Individual

The following proofs are required for all company members.

Proof of identity

A certified true copy (scanned version) of the passport (valid for at least 6 months);

Personal Tax ID Number;

Bank Reference Letter / Professional Reference Letter (minimum 2-year relationship), must be dated within the last 3 months and include the contact details of the Issuer;

A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.

See sample of a certified true copy

Proof of address

We require certified true copy (scanned version) of address proof, which can include any of the following: Bank reference / Bank statement / Utility bill / Driver license.

The address proof must clearly show the holder's full name along with physical address written in English (P.O. Box addresses are not accepted).

Please note that the provided proofs must be the most recent version and dated within the last 3 months.

For corporate or entity

Corporate verification includes two parts: company documents and KYC proofs for every associated member.

Company documents

Please provide us with certified true copy (scanned version) of the following company documents:

Certificate of Incorporation;

Memorandum and Articles of Association/Constitution;

Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).

In case the company documents can be certified via official government site, there is no need to submit certified copies.

Company members

All members must provide Proof of identity and Proof of address (same as Individual requirements)

Note:

Documents must be Certified True Copy / notarized by a Notary Public within the last 3 months
Documents must be in English or officially translated into English
Requirements may vary by case. Talk to our team for confirmation.

Why Panama

Panama combines territorial taxation, favorable corporate laws, and global connectivity.

Favorable territorial tax system

Only Panama-sourced income subject to local tax

Services performed abroad generally tax-exempt

No capital gains tax on many offshore transactions

No tax on dividends from foreign income

Offshore activities usually outside tax scope

Flexible company structure

Only one director required

Only one shareholder required

Directors and shareholders of any nationality

Same person may serve dual roles

No requirement for local annual meetings

Simple formation and compliance

Incorporation completed within days

Financial statements kept privately

Accounting records can be kept overseas

Beneficial owner data not publicly accessible

Annual renewal required with government fee

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StartUP TRU

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Alfa Solutions Corp

Customer Review

"I would highlight BBCIncorp’s promptness to keep us updated and the sensitive human touch in document management and personal interaction."

Beth B. Lawton, Assistant to General Director

Foster Swiss

Customer Review

"The process of opening the BVI company with BBCIncorp was very smooth, I don’t recall doing much except for filling out a couple of forms."

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Apocentre

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Sure Medical

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Frequently Asked Questions

Can a foreigner start a business in Panama?

Starting a business in Panama as a foreigner is both feasible and attractive due to the country’s open investment policies and strategic location. Foreigners can own 100% of a company, typically through structures such as corporations or limited liability companies. The process involves registering with the Public Registry, appointing a local registered agent, and obtaining a tax identification number and Notice of Operation.

However, certain professions remain restricted to Panamanian citizens, and labor laws may require a majority local workforce.

How should I name a Panama corporation?

The name of a Panama Corporation should not be identical to the existing company names and include words indicating it as a corporation, such as “Corporation”, “Incorporated”, “Sociedad Anonima”, or their abbreviations. The words “Limited” or “Ltd.” would not be suitable. The name can be expressed in any language.

What are the initial requirements to set up a company in Panama?

At least 3 directors, one shareholder, and a resident agent are mandatory for a Panama company registration.

Where can I open a bank account for my Panama company?

A Panama corporation can open its bank account in any country. We can support you to open your corporate account in most well-known offshore jurisdictions.

Company Incorporation

Open Business Account

Nominee Director Shareholder

Accounting & Auditing

Company Secretary

Virtual Office

Enterprise Accountant

Panama
Company Formation Through Corporate Solutions

Panama Company Formation Service Packages