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Create your company in Panama!
Create your company in Panama!
Maximum ease in creating an Offshore Company or Operating Company in Panama
Maximum ease in creating an Offshore Company or Operating Company in Panama
Types of Companies in Panama
Types of Companies in Panama
Choose the legal structure that best suits your investment and asset protection needs
Public Limited Company (PLC)
Public Limited Company (PLC)
A company particularly used for international purposes due to its flexibility, confidentiality, and tax efficiency.
Characteristics:
Composed of at least two subscribers (who may be individuals or companies).
Allows bearer or registered shares (although bearer shares are regulated).
Privacy: shareholders are not publicly registered.
May have directors and officers (president, secretary, treasurer).
Not required to file financial statements publicly.
Common uses: international business, asset holding, bank accounts, investment.
Private Limited Company (LTD)
Private Limited Company (LTD)
Limited liability company, the most common type for small businesses.
Characteristics:
Maximum of 50 partners.
The liability of the partners is limited to the capital contributed.
No shares are issued; “participation quotas” are used.
Most suitable for businesses with partners who know each other.
Common uses: small family businesses, local joint ventures.
Private Interest Foundation
Private Interest Foundation
Legal entity used primarily for asset management purposes.
Characteristics:
It has no shareholders.
It can be used for estate planning and asset protection.
It has a board of trustees and designated beneficiaries.
It does not engage in commercial activities.
Common uses: family wealth management, philanthropy, asset protection, and opening bank accounts.
What is the Procedure
in Panama?
What is the Procedure
in Panama?
Considerations such as the nature of the business, the number of owners, liability, and tax implications must be taken into account when choosing the structure to use for registering a company in Panama
Main differences between LTD
and PLC in Panama
Main differences between LTD
and PLC in Panama
Public Limited Company
Public Limited Company
- It can be formed with a single shareholder.
- Shareholders do not need to be registered in the Public Registry.
- It requires the appointment of three directors and a resident agent.
- It requires at least two subscribers.
- Minimum of three officers (president, treasurer, secretary).
- Shareholders are jointly and severally liable for the company's debts up to the amount of their contributions.
- Regulated by the Corporations Act (Law No. 32 of 1927).
Private Limited Company
Private Limited Company
- Requires at least two shareholders.
- Shareholders must be registered in the Public Registry.
- Requires one director, two shareholders, and the appointment of a resident agent. A board of directors is not required.
- Shareholders are jointly and severally liable for the company's debts up to the amount of their contributions.
- Regulated by Law 4 of January 9, 2009.
What is the difference between offshore, operational, and an operational company with a virtual office in Panama?
What is the difference between offshore, operational, and an operational company with a virtual office in Panama?
The difference between an offshore company and an operating company in Panama is mainly based on taxation.
The difference between an offshore company and an operating company in Panama is mainly based on taxation.
Both companies have the same legal incorporation process and are based on corporations or limited liability companies whose incorporation process and reference legislation are the same.
The terms offshore and operational in Panama arise from where the income of such corporations or companies is generated.
In other words, if the company generates its income or conducts its business activities in a jurisdiction other than Panama, we are talking about an offshore company. If that company also generates its income within Panamanian territory, we would be talking about a company operating in Panama.
What do I need to open a business in Panama?
What do I need to open a business in Panama?
To open a business in Panama, it is necessary to establish a legal entity that will serve as the vehicle through which commercial transactions are carried out.
Therefore, in Panama, to establish this vehicle or company, we only need:
Simple copy of the general information page of the passports of the directors (we would need three directors) and shareholders (at least one).
Directors and shareholders must be of legal age (over 18) and have a valid passport.
Foreigners or Panamanians.
They do not need to travel to Panama to incorporate the company.
Complete online forms with information about the company and its beneficiaries.
Starting a business in Panama
Starting a business in Panama
To open a business in Panama, you can choose to set up an offshore company or a company with a commercial license in Panama.
Required Documentation
Required Documentation
- Articles of Incorporation
- Certificate of Registration
- Unique Taxpayer Registration Number (RUC-DGI)
- Certificate of Public Registration
- Certificate of Shares or Digital Share Register.
Company operating in Panama
Company operating in Panama
These are companies that generate their income within the Republic of Panama and, in order to operate, must apply for a Notice of Operations in Panama and register with the municipality where they provide their services.
Required Documentation
Required Documentation
- Articles of Incorporation
- Certificate of Registration
- Unique Taxpayer Registration Number (RUC-DGI)
- Certificate of Public Registration
- Certificate of Shares or Digital Share Register
- Obtaining the Notice of Operations
- Registration with the Municipality of Panama
What is an offshore company?
What is an offshore company?
Offshore companies are those that generate income solely outside the Republic of Panama, meaning that they do not need a Notice of Operations (commercial license) or to register with the Municipality of Panama in order to operate.
Required Documentation
Required Documentation
- Articles of Incorporation
- Certificate of Registration
- Unique Taxpayer Registration Number (RUC-DGI)
- Certificate of Public Registration
- Certificate of Shares or Digital Share Register
- Obtaining the Notice of Operations
- Registration with the Municipality of Panama
- Virtual Office (Setup fee/first month)
Why establish a company
in Panama?
Why establish a company
in Panama?
Although it is most famous for the canal, Panama has much more going on. Its banking system is renowned worldwide, and there is a booming tourism and service sector offering exciting opportunities for foreign investors. If you register a company in Panama, you will be in good company: with over 500,000 companies, it is the second most popular place in the world to do so.
As a hub for global trade, the country is well accustomed to international businesses and is extremely business-friendly. By registering a company in Panama, you will have access to a well-established infrastructure, favorable tax regulations, and a strategic geographic location that facilitates global business operations. In terms of key industries, the strategic importance of the Panama Canal, an influential hub for maritime trade, has made Panama a leader in exports to the northern tip of South America, while providing crucial access to the Pacific and Atlantic oceans.
Major exports include chemicals such as oxygen compounds and sulfonamides (accounting for over 18% of exports), passenger and cargo ships (9.8%), and packaged medicines (8.2%). Other interesting business prospects include a growing tourism industry in a country that boasts abundant natural beauty, and retail, with Latin America's largest shopping mall, Albrook Mall.
According to research by The Banker, 41 of the top 100 Central American banks are located in Panama. The country has some of the best banks in the region in terms of investment attractiveness and asset security. Banco General, Bladex, and Bancolombia Panama are among the top five.
Population
Population
4.5 million
PIB , PPA
PIB , PPA
USD $177.4 billion
GDP capita PPP
GDP capita PPP
USD $39,695
Exports
Exports
Refined Oil
Fish
Gold
Bananas
FAQs on Starting a Business in Panama
FAQs on Starting a Business in Panama
Can a foreigner own a business in Panama?
Can a foreigner own a business in Panama?
Yes, a company can be 100% foreign-owned by both legal entities and individuals.
What is the tax identification number (NIF) of the Panamanian company?
What is the tax identification number (NIF) of the Panamanian company?
The tax identification number for Panamanian companies is known as the RUC (Registro Único de Contribuyentes), which translates into English as Single Taxpayer Registry, a unique identification number for tax purposes in Panama.
How long does it take to register a company in Panama?
How long does it take to register a company in Panama?
It takes ten business days to register an operating company in Panama.
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