SRL in Panama

Incorporation of a Responsibility Limited Corporation for
operations in Panama

Panamá Legal Lab: Consulting in Responsibility Limited Corporation

At Panama Legal Lab, we guide you through the entire process of creating and maintaining your Responsibility Limited Corporation, ensuring efficient legal compliance and providing customized solutions for your business objectives.

What is an SRL?

A Responsibility Limited Corporation (SRL) is a commercial entity whose capital stock is divided into shares. The main advantage is that each partner's liability is limited solely to the capital they have contributed, thus protecting their personal assets.

This entity combines the benefits of corporations with the characteristics of partnerships, offering flexibility and security. It is currently regulated by Law 4 of 2009, which modernized the regime and simplified its incorporation.

Like corporations, SRLs can be formed with individuals of any nationality and can also be used as offshore companies.

Advantages of an SRL in Panama

Limited Liability

To each member's contribution.

Flexibility

In capital participation and structure.

Accessible minimum capital requirement for forming a limited liability company in Panama.

Minimum Accessible Capital

$10,000 (Does not need to be fully paid).

International openness for partners of any nationality in a Panama limited liability company.

International Opening

Members of any nationality, with no residency requirement.

Offshore Use

For businesses outside Panama.

Constitution Process

Partners and corporate purpose: minimum of two partners and definition of the economic activity.
Articles of association: document drafted by a lawyer setting out the rules of operation, duration, and capital.
Capital contribution: represented in shares.
Registration in the Public Registry: formalization of the company.
Registration with the DGI: obtaining the RUC to comply with tax obligations.

Company incorporation process for a responsibility limited company in Panama, including corporate documents, public registry filing, and tax registration.

FAQs Responsibility Limited Corporation

How many partners are required for an SRL in Panama?

At least two partners are required to form it.

What is the minimum capital requirement for an SRL?

The minimum share capital is USD $10,000, divided into shares. It is not necessary to pay it in full at the beginning.

Can I be a foreigner and set up an SRL in Panama?

Yes, there are no nationality restrictions on becoming a member of an SRL.

How does an SRL differ from a corporation?

An SRL is organized into membership shares, while a corporation is divided into shares. In addition, SRLs are more commonly used for small and medium-sized businesses, while corporations are typically used for larger or international operations.

How long does it take to register an SRL?

The incorporation and registration process usually takes between 5 and 7 business days.

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