How to Incorporate a Panama Corporation: Requirements, Costs, and Timeline

Panama remains one of the most attractive jurisdictions in Latin America for international entrepreneurs. Its legal framework for corporations (Sociedades Anónimas, or S.A.s), favorable tax system, and strategic location make it a preferred destination for global business.

Panama applies a territorial tax system: income earned outside of Panama is generally not taxed locally, making it efficient for cross-border business structures (see Panama Ministry of Economy and Finance – Taxes).

Legal Framework

Panama corporations are governed by Law 32 of 1927.Key features include:

• At least three directors/officers are required.

• A resident agent (licensed Panamanian attorney or law firm) must be appointed.

• Shareholders may be individuals or legal entities of any nationality.

• No minimum capital requirement.

Official Reference – Law 32 of 1927 (Panama Corporations): Asamblea Nacional de Panamá

Incorporation Requirements

To incorporate a corporation, clients must provide:

• Proposed company names (with alternatives).

• Shareholder and director details (passport copies, residential addresses).

• Purpose of the company (general or specific).

• Registered agent appointment in Panama.

• Compliance documents (KYC/AML) as required by the resident agent.

Additionally, under Law 129 of 2020 and Executive Decree 13 of 2022, resident agents are required to register Ultimate Beneficial Owners (UBOs) in the private registry system administered by the Superintendence of Non-Financial Entities (SSNF).

Official Reference – SSNF UBO Registry: Superintendencia de Sujetos No Financieros

Costs of Incorporation and Renewal

Mirr Asia offers transparent service packages consistent across our materials:

• Incorporation + 1st Year Services: USD 3,000

• Annual Renewal (from 2nd year): USD 2,500

Packages include:

• Government fees and registered agent service.

• Company documents.

• Compliance and annual maintenance.

Optional Services:

EMI account opening: USD400

Opening a local account in Panama: USD2,000

Opening a CBI account in Puerto Rico: USD3,880 

Timeline for Incorporation

With complete documents provided, incorporation can be completed within 6–10 business days. Courier delivery, apostille/legalization, and bank account opening may add 1–2 additional weeks depending on client needs.

Ongoing Obligations and Compliance

• Annual Government Levy (Tasa Única): B/.300, due July 15 (entities formed Jan–Jun) or January 15 (formed Jul–Dec). Late payment results in surcharges and possible suspension.

  Official Reference – Dirección General de Ingresos (DGI): DGI Panamá – Tasa Única

• Accounting Records: Required under Law 52 of 2016. Entities must keep records and supporting documentation for at least 5 years and provide them to the resident agent within 15 working days upon request from a competent authority.

• Beneficial Ownership: UBO data must be kept current in the SSNF registry (private, not public).

Important Clarifications

• Virtual Assets: Bill No. 697 (2022), which sought to regulate crypto-assets, was declared unconstitutional by Panama’s Supreme Court in 2023. There is currently no dedicated crypto law in force. Businesses may contract privately using digital assets, but crypto is not legal tender.

• Private Interest Foundations (PPIFs): Often used alongside corporations. The Foundation Charter (with council members) is public, but Protector and Beneficiaries can remain private if set in the Regulations (by-laws), which are not filed with the Public Registry.

  Official Reference – Law 25 of 1995 (Foundations): Asamblea Nacional de Panamá

Conclusion

Incorporating a Panama corporation offers a cost-effective, compliant, and internationally recognized business structure. With the right guidance, businesses benefit from Panama’s territorial tax regime, flexible structuring options, and efficient setup process.

Mirr Asia ensures all requirements—legal, compliance, and practical—are handled smoothly, so clients can focus on growth.