Guide · Business and employment
How to Form a Corporation (Sociedad Anónima) in Panama
How to start a company in Panama with a corporation: who forms it, the steps involved, what it costs to maintain and what obligations it has.
- Law
- Corporations Law (Law 32 of 1927)
- Registered agent
- Panamanian lawyer
- Annual flat fee
- USD 300 a year
- Updated
On this page
In short
The corporation (sociedad anónima) is the most common type of company in Panama. It is formed before a notary with articles of incorporation registered in the Public Registry, always through a Panamanian lawyer who acts as its registered agent. Then, to operate, it needs its tax registration and, if it carries on a commercial activity in Panama, the business license (aviso de operación).
What do you need to start a company in Panama?
- An available name for the company.
- Subscribers who sign the articles of incorporation and a board of directors with the officers the law requires.
- A registered agent: a Panamanian lawyer or law firm.
- Identification and information on the beneficial owners.
How is a corporation formed?
01
Drafting the articles of incorporation
Name, purpose, capital, shares, board of directors and registered agent.
02
Public deed before a notary
The articles of incorporation are formalized in a public deed.
03
Registration in the Public Registry
From registration, the company has legal personality.
04
Tax registration (RUC)
Registration with the tax authority (DGI).
05
Business license
Only if the company will carry on a commercial or industrial activity in Panama.
06
Bank account
With the documentation of the company and its beneficial owners.
What are its annual obligations?
- Pay the annual flat fee (USD 300 a year).
- Keep accounting records and supporting documentation.
- Keep the beneficial ownership information up to date with the registered agent.
- If it operates in Panama: income tax return, business license and, where applicable, electronic invoicing.
We explain them in detail in annual corporate obligations.
A Panamanian company with no activity in Panama is not taxed there on its foreign-source income (territorial taxation), but your home country may attribute that income to you or consider that the company is managed from there.
Frequently asked questions
Can a foreigner form a corporation in Panama?
Yes. You do not need to be Panamanian or a resident to form one; a registered agent is mandatory.
Do I need to live in Panama to have a company there?
Not to form it. But if the company is managed from your home country, that country may consider it taxable there.
Is there a minimum capital?
The law does not require a minimum paid-in capital; the authorized capital is set in the articles of incorporation.