Panama Company Registration | Set Up an Offshore Company in Panama
Panama offshore company
Planning Panama company registration, or want to set up a company in Panama for international trade or as a holding structure? The most common entity in Panama is the corporation (Sociedad Anónima, or S.A.). A Panamanian lawyer acts as the resident agent, and the articles of incorporation are notarized and registered with the Public Registry of Panama (Registro Público). Under Law No. 32 of 1927, people of any nationality can form and own a corporation even if they do not live in Panama.
Panama taxes on a territorial basis, so only income from Panamanian sources is taxed. A Panama company pays its first annual government fee (Tasa Única) of B/.250 at registration and B/.300 every year after that, must keep accounting records, and has its beneficial owners reported by the resident agent. NSS Group (戰國策集團) offers a one-stop Panama company formation service, from structure assessment and working with a local lawyer to document preparation, bank account opening and annual maintenance, and helps companies and individuals from abroad set up a compliant Panama offshore company.
Panama taxes only income produced in or sourced from Panama. Taxable income of companies from Panamanian sources is taxed at the general rate of 25% (Article 699 of the Fiscal Code). Foreign-source income is outside the scope of tax, but the company must still pay the annual government fee and keep accounting records every year.
Panamanian law still allows bearer shares, but under Law No. 47 of 2013 they must be held by an authorized custodian. Under Law No. 129 of 2020, the resident agent must also register beneficial owner information with the authorities. Company information is protected by law, but a Panama company is no longer an anonymous vehicle, and compliant reporting is a basic requirement.
Panama’s currency, the balboa, is pegged at par to the US dollar, and the US dollar is legal tender. International trade payments and pricing are in US dollars, which lowers currency risk.
Under Article 1 of Law No. 32 of 1927, 2 or more adults of any nationality can form a corporation even if they do not live in Panama. Directors and officers can be of any nationality, and the share capital and share classes are set in the articles.
The Colón Free Zone (Zona Libre de Colón), at the Atlantic end of the Panama Canal, offers a special regime for imports, exports, warehousing and re-export trade. It is often paired with a Panama company for regional trade in Latin America.
in Panama?
A Panama company is attractive for international trade and holding structures because of these core features:
Panama company registration must be handled by a local lawyer or law firm acting as resident agent (agente residente). The company is formed once its articles of incorporation are notarized by a Panamanian notary and registered with the Public Registry.
NSS Group connects you with a Panamanian lawyer, prepares the shareholder and director documents, and plans the annual government fee, accounting records and beneficial owner reporting after setup, so your Panama offshore company stays clear and compliant from formation to annual maintenance.
A Panama company must have a Panamanian lawyer or law firm as its resident agent. The resident agent drafts and registers the articles and later handles the annual fee, accounting records and beneficial owner reporting.
The lawyer checks the name at the Public Registry and, under anti-money laundering rules, collects passports and proof of address for directors, shareholders and beneficial owners, plus a description of the business and the source of funds.
The articles state the company name, purpose, share capital and shares, resident agent and list of directors. Under Law No. 32 of 1927, there must be at least 3 directors, and officers are appointed as set out in the articles.
The articles are notarized by a Panamanian notary and sent to the Public Registry for registration, together with the registration fees and the first annual government fee of B/.250. Once registered, the company is legally formed.
After that, pay the annual government fee of B/.300 every year (by July 15 or January 15, depending on the month of registration), give your accounting records to the resident agent by April 30 each year, and update beneficial owner information when it changes.
service
- Company name search and reservation
- Preparation and filing of registration documents
- Drafting of governing documents
- Collection of the registration certificate
- Bank options for offshore companies
- Account opening document preparation
- Appointment booking and accompaniment
- Post-opening support
- Registered address
- Company secretary appointment
- Annual filing services
- Document custody and management
- Bookkeeping
- Tax filing and planning
- Financial statement preparation
- Audit arrangement
- Trademark search and assessment
- Trademark application filing
- Trademark maintenance and renewal
- Infringement protection advice
- Company change filings
- Share transfer support
- Company deregistration
- Legal advisory support
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- Structure assessment and name check
- Working with a Panamanian lawyer and resident agent
- Articles drafting, notarization and Public Registry registration
- KYC document preparation and beneficial owner reporting
- First-year resident agent and registered address
Official Panama annual government fee (Tasa Única): B/.250 for the first period, then B/.300 a year. Notary and registration fees and lawyer and advisory fees are quoted based on your structure and services. See the fee breakdown below. No hidden fees.
Panama company formation cost: fee breakdown
The total cost of setting up a company in Panama is made up of the annual government fee (Tasa Única), Public Registry registration fees, lawyer and resident agent fees, and annual maintenance. Below are the official figures published by Panama's Directorate General of Revenue (DGI), so you can check Panama offshore company quotes line by line.
| Item | Fee | Notes |
|---|---|---|
| First annual government fee (Tasa Única) | B/.250 (1 balboa = US$1) | Under Article 318-A of the Fiscal Code (amended by Law No. 49 of 2009), paid together with the registration fees when the company is registered with the Public Registry. |
| Annual government fee after that | B/.300 | Per the DGI: companies registered from January to June pay by July 15 each year; companies registered from July to December pay by January 15 each year. |
| Late annual fee | B/.50 surcharge | The DGI adds a B/.50 surcharge for late payment. If 3 consecutive periods are unpaid, the company's rights are suspended. |
| Reinstatement after suspension | B/.1,000 reinstatement penalty | Under Article 318-A, reinstatement requires paying B/.1,000 and fixing the cause. If the company is not reinstated within 2 years of suspension, the Public Registry dissolves it. |
| Notary and Public Registry registration fees | As published by the authorities | The articles must be notarized by a Panamanian notary and registered with the Public Registry (Registro Público). Fees are based on the share capital and the documents. |
| Lawyer / resident agent (agente residente) | Quoted by service | A Panama company must have a local lawyer or law firm as its resident agent. This is a fixed annual maintenance item. |
| NSS Group advisory fee | Written quote after a free assessment | Based on your shareholder structure, director arrangements, bank account needs and home-country tax planning. Every item is listed in the quote, with no hidden fees. |
The annual government fee follows the DGI "Tasa Única" guidance and Law No. 49 of 2009. The latest official notice prevails.
Panama company tax and compliance: territorial tax still means filing duties
Panama taxes on a territorial basis, so only income from Panamanian sources is taxed. But a Panama company still has yearly duties for the annual government fee, accounting records and beneficial owners, and shareholders should check whether their home country's controlled foreign company (CFC) rules apply.
| Item | Rule | Notes |
|---|---|---|
| Corporate income tax | 25% on Panamanian-source income | Under Article 699 of the Fiscal Code (amended by Law No. 8 of 2010), companies pay the general rate of 25% on taxable net income from Panamanian sources. Foreign-source income is outside the scope of tax. |
| Sales tax (ITBMS) | General rate 7% | Applies to the sale of goods and services in Panama. The DGI states that you must start charging it once annual turnover exceeds B/.36,000. Some goods and the lodging sector have higher rates. |
| Annual government fee | B/.300 a year | Payable whether or not the company trades. It is the basic condition for keeping the company in good standing. |
| Accounting records | Keep for at least 5 years | Under Law No. 52 of 2016 (amended by Law No. 254 of 2021), companies that do not operate in Panama or only hold assets must also keep accounting records and supporting documents, and give the previous year's records or copies to the resident agent by April 30 each year. Breaches can be fined B/.5,000 to B/.1,000,000. |
| Beneficial owner registration | Reported by the resident agent | Under Law No. 129 of 2020, the resident agent must record the company's beneficial owners in the single beneficial ownership registry run by the Superintendency of Non-Financial Subjects (SSNF). Companies that are not recorded or not updated may have their rights suspended. |
| Home-country CFC rules | For shareholders in CFC countries | Panama does not tax foreign-source income. If a Panama company is directly or indirectly controlled by companies or individuals in a country with CFC rules, its profits may have to be included in their taxable income at home. |
Rates and filing rules follow DGI notices and the relevant laws. Ask an accountant to assess your actual structure.
Panama, BVI or Belize company: which should you choose?
A Panama offshore company is often compared with other offshore companies. The table below compares three structures founders often consider on a few key points.
| Item | Panama corporation (S.A.) | BVI business company (BC) | Belize company |
|---|---|---|---|
| Registrar | Public Registry of Panama (Registro Público) | BVI Financial Services Commission (FSC) Registry of Corporate Affairs | Belize Companies and Corporate Affairs Registry (BCCAR) |
| Local tax basis | Territorial; foreign income not taxed | Companies exempt from income tax | No income tax on foreign income |
| How it is formed | A Panamanian lawyer acts as resident agent; the articles are notarized and registered | Must go through a licensed BVI registered agent | Registered online on OBRS through a licensed registered agent |
| Directors | Listed in the articles; at least 3 | At least 1, can be a company | Under the Belize Companies Act 2022 |
| Annual government fee | B/.300 | From US$450 | Annual return renewal from US$250 |
| Common uses | Latin American trade, shipping, asset holding, holding companies | Holding, investment, special purpose vehicles (SPV) | International trade orders, holding |
These are general principles. The BVI and Belize figures come from each registrar's notices. Choose based on your shareholders' background, payment regions and tax planning.
What foreign founders should know about setting up a company in Panama
- Foreigners can form and own companies: under Article 1 of Law No. 32 of 1927, 2 or more adults of any nationality can form a corporation even if they do not live in Panama, and foreign shareholders can own 100%.
- You must have a Panamanian lawyer as resident agent: the resident agent (agente residente) must be a Panamanian lawyer or law firm and handles formation, the annual fee, keeping accounting records and beneficial owner reporting.
- Bearer shares are tightly controlled: under Law No. 47 of 2013, bearer shares must be held by an authorized custodian. In practice, most new companies use registered shares, and a Panama company should no longer be treated as an anonymous vehicle.
- Bank account opening is the biggest hurdle: international banks run strict KYC reviews on offshore companies. Prepare a business description, contracts or invoices, source of funds and beneficial owner documents.
- CFC rules at home: if you live in a country with controlled foreign company rules, check whether the Panama company's profits must be included in your taxable income there, since Panama does not tax foreign-source income.
- Do not miss the annual fee or accounting records: the B/.300 annual government fee and giving accounting records to the resident agent by April 30 are the two key deadlines for keeping a Panama company in good standing.
Further reading
Sources: Panama DGI: "Tasa Única" guidance; Law No. 49 of 2009 (amending Article 318-A of the Fiscal Code); DGI income tax rates; DGI ITBMS guidance; Law No. 52 of 2016 (accounting records); Law No. 129 of 2020 (beneficial owner registry); Law No. 47 of 2013 (bearer share custody); Law No. 32 of 1927 (corporations law). The latest official notices prevail. This page is general information, not legal or tax advice.
How long does it take to set up a Panama company?
The time to set up a Panama company depends on the name check, KYC documents, notarization of the articles and registration with the Public Registry. Once the documents are complete, the lawyer files them for registration. If the business needs a special license or is in finance or another regulated industry, it may take longer. Before we start, we give you the actual steps and timeline for your structure.
What documents do I need to set up a Panama company?
To set up a Panama company, you usually prepare the following first:
- 1. Identity documents for shareholders, directors and ultimate beneficial owners
- 2. Proof of address from the last three months and contact details
- 3. Panama company name, entity type and registered address arrangement
- 4. A description of the business model, main trading regions and source of funds
- 5. Shareholding percentages, director appointments, KYC and required authorization documents
Do I need to be in Panama in person to set up the company?
Most of the Panama company setup can be done remotely through document preparation, authorized signing and a local agent, so you do not need to be there in person for the whole process. However, bank account opening, identity verification, special licenses or certain government procedures may require directors, shareholders or authorized persons to attend in person, join a video call or provide extra documents. We confirm the requirements in advance and help you arrange them.
What tax and filing obligations does a Panama company have?
- 1. Panama taxes only Panamanian-source income; companies with local business income pay 25% corporate income tax and 7% ITBMS (sales tax)
- 2. Annual filings, company registration upkeep, registered agent or secretarial services
- 3. Accounting records, audit, and economic substance or beneficial ownership maintenance
For a Panama company, the usual follow-up items are renewing the resident agent, the annual government fee (B/.300 a year), giving accounting records to the resident agent by April 30 each year, updating beneficial owner information, and checking whether your home country’s CFC rules apply to shareholders. We can plan your bookkeeping, filing and annual maintenance schedule around your business model.
What businesses and structures is a Panama company suited for?
Who can help me register a company in Panama?
NSS Group (go.ai.com.tw) can help. We provide one-stop support for your Panama company, from pre-incorporation assessment to post-incorporation maintenance, reducing uncertainty in cross-border setup and compliance.
Our main services include:
- 1. Panama entity type and structure assessment
- 2. Company name search, document preparation and registration filing
- 3. Bank account opening, KYC and cross-border payment documents
- 4. Bookkeeping, tax filing and annual compliance
- 5. Changes to shareholders, directors, address, shares and company details
- 6. Trademark registration, contract review and intellectual property planning
- 7. Website build, digital marketing and AI customer service setup
- 8. Ongoing business advisory and cross-border business support
We arrange your Panama company setup, maintenance and ongoing support based on your industry, customer locations, banking needs and tax planning, so you can focus on growing your market.