Company Registration in Panama
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Central America, connecting North and South America via the Panama Canal
Location
Panamanian Balboa (PAB) and US Dollar (USD) are both widely used
Currency
Legal System
SA (Corporation), LLCs, Private Foundations
Corporate Structures
Tax System
- Territorial tax system: Only income generated within Panama is subject to taxation
- Offshore companies are exempt from corporate income tax if their income is sourced outside Panama
- No capital gains tax or withholding taxes for offshore entities
Legal Framework
- Based on Civil Law; governed by the Commercial Code and Corporation Law (Law No. 32 of 1927).
- Sociedad Anónima (SA) is the most common structure for international operations
- Directors' and shareholders' details are confidential and not publicly disclosed
Advantages
- Strategic location with access to global trade routes via the Panama Canal
- Robust banking sector supporting international transactions
- No residency requirements for directors or shareholders
- Quick incorporation process with minimal bureaucracy
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