Company Formation Process in Panama
Establishing a new company in Panama is a structured process that typically takes 3-5 business days. ShelfCompanies24 handles the entire formation process on your behalf, from preparing the articles of association to registering with all relevant authorities.
Available Company Types in Panama
The following legal structures are available for company formation in Panama:
| Company Type |
Description |
| S.A. (Corporation), SRL (LLC), Foundation (Fundación de Interés Privado) |
The minimum share capital requirement is USD 10,000 for S.A. (no need to pay in).
Step-by-Step Formation Process
- Choose your company structure — Select the appropriate legal form based on your business needs, number of shareholders, and capital requirements.
- Prepare documentation — Our team prepares the articles of association, shareholder agreements, and all necessary corporate documents.
- Company name verification — We verify the availability of your chosen company name with the Panamanian commercial registry.
- Capital deposit — Deposit the required share capital (USD 10,000 for S.A. (no need to pay in)) in a designated bank account.
- Notarization and registration — Documents are notarized (where required) and submitted to the commercial registry.
- Tax registration — Register the company for corporate tax (at a rate of 25% (territorial system — foreign-source income exempt)) and VAT (7% ITBMS).
- Bank account opening — Open corporate bank accounts with Panamanian banks for business operations.
Required Documents
- Valid passport copies of all shareholders and directors
- Proof of residential address (utility bill or bank statement, not older than 3 months)
- Description of planned business activities
- Proof of source of funds (where applicable)
- References from existing banks or professional advisors
Tax Environment in Panama
Companies formed in Panama are subject to a corporate tax rate of 25% (territorial system — foreign-source income exempt). The standard VAT rate is 7% ITBMS. The currency is USD (US Dollar, alongside PAB).
Timeline and Costs
Standard company formation in Panama takes approximately 3-5 business days. For exact pricing tailored to your specific requirements, please contact our consultants.
Related Services in Panama
Frequently Asked Questions
How long does it take to register a company in Panama?
Company registration in Panama typically takes 3-5 business days. ShelfCompanies24 handles the entire process on your behalf.
What documents do I need to form a company in Panama?
You will need valid passport copies, proof of address, description of business activities, and proof of source of funds. Our team guides you through all documentation requirements.
Can a foreigner set up a company in Panama?
Yes, foreign nationals can establish companies in Panama. There are generally no restrictions on foreign ownership of Panamanian companies.
What is the minimum capital to start a company in Panama?
The minimum capital requirement in Panama is USD 10,000 for S.A. (no need to pay in). Our consultants can advise on the optimal capital structure for your business.
Content prepared by Piotr Walter, In-house Lawyer at ShelfCompanies24. Attorney, graduate of Law Faculty at University of Gdańsk. Approved by Tomasz Bielski, Managing Director.
