Why Start a Business in Panama?

Starting a business in Panama provides access to a flexible corporate structure, an internationally recognized jurisdiction, and an attractive environment for entrepreneurs seeking greater organizational efficiency, asset protection, and international reach.

Tax Advantages

A well-defined structure from the outset allows for better organization of operations, improved business planning, and more efficient management at both the corporate and international levels.

Asset protection

Panamanian companies allow for the separation of personal assets from business activities and provide a more solid legal foundation for protecting investments, equity interests, and operations.

Dollarized economy

Operating in an environment tied to the dollar facilitates financial planning, reduces currency exchange risks, and provides greater predictability for businesses dealing with international clients or suppliers.

Not sure which company structure to choose?

We’ve made it easy for you: here’s how the two most common options differ

Offshore Company

For international structures engaged in global trade

If you don’t conduct business within Panama but are looking for a legal and efficient company structure, this option is for you.

Ideal for:

  • Investment holding companies
  • International e-commerce
  • Asset protection
  • Companies with no local operations

Operating Company

For companies providing services or generating revenue from Panama

If you plan to generate revenue, hire employees, or provide services within Panama, this is the tax structure you need.

Ideal for:

  • Companies generating revenue from Panama
  • Local services or commerce
  • Hiring staff
  • You’ll need a Unique Taxpayer Registry (RUC), notice of operations, and registration

We have a plan tailored to your needs

Choose the type of company and the level of support your project requires.

Basic

$1.712,80
Getting Started or Basic Validation
Drafting of the Articles of Association
Certificate of Incorporation
Certificate of Public Registry
Resident Agent Fees (1st year)
Corporate Income Tax (1st year)
Annual tax/fee reminder and payment to the General Revenue Directorate (DGI)
Institutional costs
Transaction costs
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Most Recommended

Business

$2.200,00
Get up and running from day one with everything taken care of
Everything included in the Basic package, plus:
Unique Taxpayer Registry – General Revenue Directorate (RUC-DGI)
Document delivery to your door*
Certificate of Shares (3 partners)
Share Register
Share Issuance Minutes
Certified Revenue Projection (CPA)
24/7 Service
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Business Plus

$2.494,50
Ready for global use
Everything related to business, plus:
Apostille for the Articles of Association and Permanent Resident ID Card (CRP).
Translation of the Articles of Association and an additional document
General Power of Attorney (if requested)
Preferential rates on related services
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Frequently Asked Questions About Starting a Business in Panama

Learn about our additional solutions for specific situations.

How long does it really take to incorporate a company in Panama?

The process can be completed in just 5 business days, thanks to our online platform and legal guidance from the start.

Can a foreigner open a company in Panama without residing in the country?

Yes. Panama allows international entrepreneurs to set up companies without living in the country, managing everything 100% online.

What do I need to start a business in Panama?

You need a legal structure, i.e., you must incorporate a legal entity in Panama (usually a Corporation or Limited Liability Company). Requirements:

  • A valid passport copy

  • Be over18 years old

  • 3 directors to complete incorporation We assist with administrative procedures such as obtaining the RUC or Notice of Operations.

Which company type is better: operating or offshore?

  •  Operating company: best for commercial activity within Panama.
  • Offshore company: best for international businesses without local activity.

What is an operating company in Panama?

A company that carries out economic activities within Panama (e.g., local services, invoicing, hiring staff, contracting with established Panamanian businesses).

What is an offshore company in Panama?

A company with no local activities, ideal for international business or investment structures operating outside Panama.

What is an operating company with a virtual office and what is it for?

It’s an operating company with a valid tax address for interacting with banks and authorities, without needing a physical office.

What’s the difference between offshore, operating, and operating with virtual office?

  • Offshore: no comercial activity in Panama.
  • Operating: invoicing or hiring or with commercial activity in Panama.
  • Operating + virtual office: adds a tax address to legally operate with local entities

What are the annual costs of a company in Panama?

With our firm:
A. Annual Franchise Tax (Corporate License Fee): US$ 300.00
B. Resident Agent Fees: US$ 428.00
C. Filing of Annual Accounting Records Declaration: US$ 107.00
Total: US$ 835 (tax included)
Note: Service only includes filing with General Revenue Directorate (DGI), not preparation of accounting records, which must be provided by the client.