Panama is a popular destination for company registration due to its favorable business environment and strategic location. Known for its robust offshore services sector, Panama offers a straightforward and efficient process for incorporating businesses, making it attractive for entrepreneurs and multinational corporations.

One of the key advantages of registering a company in Panama is its territorial tax system, which means that income generated outside of Panama is not subject to local taxation. This feature, along with no minimum capital requirements and the absence of exchange controls, makes it an appealing jurisdiction for international business operations.

Panama’s strategic location, with the Panama Canal serving as a crucial maritime route, enhances its appeal for businesses involved in international trade. The country’s free trade zones, such as the Colon Free Zone, provide additional incentives like tax exemptions and customs benefits. Moreover, Panama has signed numerous double taxation avoidance treaties, further enhancing its attractiveness for global investors.

Manimama ensures a seamless company registration process in Panama. Trust us to provide expert guidance and support, so your business can thrive from day one in Panama. Start your journey with confidence, knowing you have the best team by your side.

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Legal Opinion about Panama as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama

CEO

“Panama offers a business-friendly environment with significant tax advantages, efficient incorporation procedures and robust legal protections, making it a preferred jurisdiction for company registration and international business operations. Manimama is ready to help you with business registration in Panama”.

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Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

Company formation
Registered address for the 1st year
Annual accounting requirement bookkeeping

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Annual Services

Company renewal and registered address
Annual Government Tax
Mandatory Financial Beneficiary Report

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Other Services

Set of corporate documents (certified/apostille)
Nominal service for 1 year
Offshore banking

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Key Numbers about Incorporations

3

directors for a company

up to 2 weeks

timeline for a company registration

no

minimum paid up share capital

0%

corporate income tax (CIT) for IBCs (outside of Panama)

up to 25%

personal income tax (PIT)

no

value added tax (VAT) for IBCs

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Set up Your Company in Panama in Several Steps

Step 1. Initial setup

Initiating a preliminary project assessment
Preparation and filing of the package of documents

Step 2. Company registration

Verification and reservation of the company name
Facilitating the notarial process for the company's official registration
Incorporating the company's data into the Panama Public Registry
Obtaining the Certificate of incorporation from the Panama Public Registry, Memorandum and Articles of Association

Requirements for Company Formation in Panama

Before deciding to set up a new company in Panama, read the information below to understand the characteristics of an International Business Company (IBC):

Shareholders: the company is required to have at least 1 shareholder.

Director: a Panama company is administered and conducted by a Board of Directors, which requires a minimum of 3 directors. A company must have a president, secretary and treasurer, who are appointed by the Board of Directors. The usual practice is to appoint the same persons to the positions of directors/officers. For example, a director-president, a director-secretary and a director-treasurer.

Company secretary: yes.

Minimum share capital: there is no minimum capital requirement.

Registered agent: the company must have a registered agent in Panama.

Liability: members are only liable to the extent of their participation.

Accounting: the Panamanian IBC must maintain accounting records. In addition, it is necessary to file annual reports with the Panama Public Registry.

Taxes in Panama

Corporate income tax (CIT)

The standard rate is 25%.
But IBCs are exempt from income tax if the profit was earned outside of Panama.
The only tax in Panama that IBCs are subject to is an annual franchise rate of $300 (a flat rate).

Personal income tax (PIT)

The PIT rates are as follows:

between $0 to $11,000 annually - you will not pay a tax
between $11,001 and $50,000 - you're taxed at 15% on all income above $11,000
over $50,000 - you'll pay $5,850 in income tax + 25% on all income over $50,000

Value-added tax (VAT)

IBCs don’t have to pay VAT.

Double taxation avoidance agreements in Panama: Barbados, Czech Republic, France, Ireland, Israel, Italy, Luxembourg, Mexico, Netherlands, Portugal, Singapore, South Korea, Spain, Qatar, Unit Arab Emirates, United Kingdom, Vietnam.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Panama:

Expertise in Regulations of Panama

1. Manimama has an in-depth understanding of Panama's legal and regulatory framework.
2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

1. We have established strong relationships with local authorities, banks, and service providers.
2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

1. We provide continuous support to ensure your business remains compliant with laws of Panama.
2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

What is the first step to registering a business in Panama?

The first step is to choose a business structure and select a unique business name that complies with Panama’s naming requirements.
Do I need a registered agent in Panama?

Yes, all businesses registered in Panama must have a registered agent.
Do I need a physical office in Panama?

While not required for all business types, having a physical office can be beneficial for certain business operations and compliance purposes.
Are there any tax benefits for registering a company in Panama?

Yes, Panama offers various tax incentives, including a territorial tax system where income generated outside of Panama is not subject to local taxes.
Do I need to keep accounting records in Panama?

Yes, all companies must maintain proper accounting records, which can be kept outside Panama but must be available to present to authorities if requested.
Do I need to hire local directors or officers?

No, Panama does not require local directors or officers; however, a minimum of three directors is required for corporations.
What is the minimum capital requirement to register a company?

There is no minimum capital requirement for most business entities in Panama.
Can I register my business online?

Yes, certain steps of the registration process can be completed online, but engaging a registered agent is highly recommended for efficiency and compliance.
What languages are accepted for company registration documents?

All official documents must be in Spanish or translated into Spanish by a certified translator.
Where can I find additional resources and assistance?

Additional resources and assistance can be found through the Public Registry of Panama.

Semen Kaploushenko

KUNA, CBDO

“Thanks to the Manimama team, my legal issues were resolved at the highest level”.

Vadym Grusha

Trustee Wallet, CEO

“My cooperation with Manimama OU was extremely positive”.

Yuriy Soshenko

WhiteBit, CLO

"The whole process was stress-free thanks to their professional work and individual approach”.

Manimama as the Best Solution for Your Company Formation in Panama

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.
Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.
Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.
Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Panama, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Panama and pave the way for your business success.