Corporate
Incorporate a Corporation (S.A.) in Panama. Access robust asset protection tools, corporate privacy and an internationally recognized legal framework for business, investment and international planning.
Panama remains an attractive jurisdiction for incorporating companies thanks to its territorial tax system, dollarized economy, strategic location, banking infrastructure and well-regarded corporate framework.
However, the incorporation of a Panamanian company must be planned correctly from the outset. Depending on the company's use, it may be necessary to assess tax, accounting, banking, regulatory and economic substance obligations, especially when the entity will be used as a holding company, investment vehicle, holder of brokerage accounts, real estate company or part of an international group.
At M. George & Asociados we assist local and international clients with the incorporation, structuring and legal maintenance of Panamanian companies, with an up-to-date focus on compliance and long-term planning.
Panamanian companies are commonly used for:
International business
Consulting and professional services
E-commerce
Holding real estate
Asset protection and management
Holding companies
Family offices
Investment vehicles
Bank accounts and brokerage accounts
International wealth structures
Panama offers significant benefits for international investors and businesses, including:
Territorial tax system for qualifying income
Economy based on the U.S. dollar
Strategic location for trade, logistics and services
Fast incorporation
Flexible legal framework
Corporate privacy
Possibility of foreign shareholders
No general residency requirement for shareholders or directors
Frequently used for business, investment, banking and wealth planning
The tax benefit should not be presented as automatic. It must be assessed based on the source of income, the type of activity, the ownership structure and the applicable obligations.
Panama maintains its territorial system, but the tax reform under Law 526 of 2026 introduces reporting and economic substance rules for certain Panamanian entities that are part of multinational groups and receive foreign-source passive income, starting from the 2027 tax period.
These rules may be relevant for companies used as:
International holding companies
Investment vehicles
Holders of brokerage accounts
Foreign real estate structures
Intellectual property vehicles
Wealth entities within international groups
Foreign-source passive income may include dividends, interest, royalties, capital gains, foreign real estate income and other income from movable capital. If an entity subject to these rules fails to comply with the reporting or the required economic substance, it could be considered a non-qualifying entity and become subject to a single tax of 15% on the net taxable income.
For this reason, we recommend that every new Panamanian company be assessed from the outset according to its purpose, source of income, control structure, accounting obligations, banking needs and possible exposure to economic substance rules.
We offer complete legal assistance to incorporate and maintain Panamanian companies in a secure, efficient manner aligned with the client's needs.
Incorporation of a Panama Corporation
Drafting of the articles of incorporation
Registration with the Public Registry
Resident agent service
Registered address
Corporate secretary
Nominee directors, when appropriate and subject to due diligence
Review of corporate structure
Assistance with RUC and tax registration
Guidance on the Notice of Operation
Coordination for bank or financial accounts
Initial review of accounting obligations
Preliminary economic substance assessment, where applicable
Annual legal compliance
We review the company's objective, intended activity, client profile, structure of shareholders, directors and ultimate beneficial owner.
We analyze whether the company will be used for active operations, holding, investment, real estate, banking, brokerage, international trade or wealth planning.
We prepare the articles of incorporation, internal forms, due diligence documentation and corporate structure.
We file the documentation with the Public Registry of Panama.
We deliver the incorporation documents and guide the client on the subsequent steps.
We assist with tax registration, accounting, banking, licenses, office, economic substance and annual maintenance, as applicable.
Incorporation within a few business days
No mandatory minimum capital
Minimum of one shareholder
Minimum of three directors
Shareholders and directors may be foreign
Nominee directors available in appropriate cases
Territorial system for qualifying income
Flexible use for business, investment and holding of assets
Possibility of structuring banking, accounting and tax support from Panama
To incorporate a Panamanian company, the following is normally required:
Proposed name of the company
Copy of passport or identity document
Proof of address
Ultimate beneficial owner information
Intended activity of the company
Information on the source of funds or wealth
Details of shareholders and directors
Due diligence process
Additional documents depending on the bank, activity or jurisdiction involved
A Panamanian company may require additional services after its incorporation, depending on its activity and structure.
We assist with:
Tax registration with the DGI
Obtaining the RUC
Coordination with a CPA
Accounting records
Annual return
Assessment of the Tax Residency Certificate - Legal Entity
For holding companies, investment vehicles, brokerage accounts, foreign real estate structures or entities linked to international groups, we can assist with:
Applicability assessment
Classification of active income and foreign passive income
Corporate resolutions
Documentation of decisions
Annual compliance file
Evidence of office, management or outsourced services in Panama
Accounting and tax coordination
Depending on the activity, the company may require:
Notice of Operation
Municipal permits
Sector-specific licenses
Authorizations from entities such as the Ministry of Health, the Panama Maritime Authority, municipal authorities or other regulators
We assist with the preparation of files for:
Corporate bank accounts
International accounts
Brokerage accounts
Merchant accounts
Payment gateways
Corporate profile and source-of-funds documentation
Related service: Legal Assistance for Bank Accounts in Panama.
Depending on the case, the company may require:
Registered address
Virtual office
Meeting room
Physical office
Document archive
Warehouse or commercial space
Review of rental agreements
These elements may be important for banks, corporate compliance, local operations or economic substance.
Recommended nominal capital: from USD 10,000
Government fees: from USD 650
Annual maintenance: from USD 950
Costs may vary depending on directors, due diligence, office services, tax registrations, accounting, banking, licenses, economic substance and annual compliance.
Common questions answered before your consultation.
A Panama Corporation is a flexible legal vehicle for international business, asset holding, real estate ownership, consulting, e-commerce, investment structures and family offices. Panama's territorial tax system, its dollarized economy, strategic location and established corporate framework make it attractive to local and international clients.
A Panamanian company can generally be incorporated within a few business days, once the corporate structure, shareholders, directors, name availability and required compliance documents have been defined. Timeframes may vary depending on due diligence, the legalization of documents, the availability of the requested information and whether additional registrations or authorizations are required. As a general guideline, once the documents have been reviewed and approved by the compliance officer, the estimated incorporation time is usually 4 to 5 business days.
Panama applies a territorial tax system, which means that income generated outside Panama is generally not subject to Panamanian income tax. However, the tax treatment depends on the company's activities, management, operations and international reporting obligations. Clients should obtain legal and tax guidance before operating.
Related topic: Tax Residency Certificate - Legal Entity.
Yes, but banks and financial providers apply strict compliance and due diligence procedures. The company must be prepared with corporate documents, a business plan, source of funds, ownership information and supporting records. Legal assistance can improve the quality of the banking file and reduce avoidable delays.
Related topic: Legal Assistance for Bank Accounts in Panama.
After incorporation, the company should assess aspects such as tax registration, resident agent, corporate records, accounting when applicable, licenses according to the activity, ultimate beneficial owner and banking support.
A corporation or private interest foundation can be a useful tool for foreigners who wish to establish economic and legal ties with Panama. In some immigration categories, such as Friendly Nations, an operating local company may be part of the residency strategy. In other categories, such as Qualified Investor or Own Economic Solvency, investments can be held through corporations or foundations. In addition, these structures are also used for asset protection, international planning, financial confidentiality and strengthening the applicant's banking and tax profile.
Yes. Panama maintains a territorial tax system, but the benefit is not automatic in all cases. Panamanian entities that are part of multinational groups and receive foreign-source passive income may be required to report such income and demonstrate adequate economic substance in Panama. If they fail to comply, they could be considered non-qualifying entities and become subject to a single and final tax of 15% on the net taxable income of such foreign passive income.
In the maritime sector, the law provides for a special exclusion for entities engaged in the commercial operation of vessels or ships registered in Panama, including shipowners, operators and managers of vessels, provided that the income is directly and effectively linked to the regulated maritime activity. For maritime structures, we also recommend reviewing our Ship Registration in Panama service and the related maritime legal services.
Schedule your initial consultation and let us guide you through the process. We respond within 1 business day.
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