Manage cookies

Cookie Settings

Cookies necessary for the correct operation of the site are always enabled.
Other cookies are configurable.

Essential cookies

Always On. These cookies are essential so that you can use the website and use its functions. They cannot be turned off. They're set in response to requests made by you, such as setting your privacy preferences, logging in or filling in forms.

Analytics cookies

Disabled

These cookies collect information to help us understand how our Websites are being used or how effective our marketing campaigns are, or to help us customise our Websites for you. See a list of the analytics cookies we use here.

Advertising cookies

Disabled

These cookies provide advertising companies with information about your online activity to help them deliver more relevant online advertising to you or to limit how many times you see an ad. This information may be shared with other advertising companies. See a list of the advertising cookies we use here.

Company Formation in Panama 2026 | MYFIRM GLOBAL

MYFIRM GLOBAL

Company Formation in Panama

Territorial tax · USD economy · Strong asset protection

$2,190Starting from

5-7 daysRegistration

0%Corp. tax

USDCurrency

Home› Jurisdictions› Panama

All Jurisdictions

British Virgin Islands

Saint Vincent & Grenadines

UAE

USA

200+Companies

7+Years

30+Jurisdictions

LondonOur office

On this page

Why Panama?
Key Benefits
Facts & Ratings
Taxation
Banking
Our Process
Is it right for you?
Comparison
Common Mistakes
FAQ

Overview

Why Register a Company in Panama?

Panama operates a strict territorial tax system: only income derived from activities within Panama is taxable. Foreign-sourced income — which includes income from international trading, IP licensing, investment returns, and services to foreign clients — is completely exempt from Panamanian tax.

Panama's USD-based economy eliminates currency exchange risk for businesses operating in dollars. The Panama Canal jurisdiction creates a globally recognised commercial hub with strong asset protection traditions.

Advantages

Key Benefits of Panama

Territorial taxation

Only Panama-sourced income is taxable. All foreign-sourced income is completely tax-exempt.

USD economy

Panama uses the US dollar as its primary currency. No exchange rate risk for USD-denominated businesses.

Asset protection

Panama has strong legal frameworks for asset protection through corporate structures and foundations.

No foreign exchange controls

Money moves freely in and out of Panama without restriction.

Privacy for shareholders

Shareholders are not required to be recorded in the public registry. Directors are public but nominees are permitted.

Established legal framework

Over a century of corporate law tradition with sophisticated international business infrastructure.

At a glance

Key Facts

Entity typeSociedad Anónima (SA)

Legal systemCivil Law (Spanish-based)

RegulatorPublic Registry of Panama

Corporate tax0%

Registration time5-7 days

Min. capitalNone

Public registerDirectors public, shareholders private

Annual feeApproximately $300 annual franchise tax

Remote setupYes

Our rating

Jurisdiction Score

Ease of setup 7/10

Banking access 7/10

Privacy 9/10

Tax efficiency 9/10

Tax & compliance

Taxation & Compliance in Panama

Panama's territorial tax system means that income from foreign sources — including international trading, services to non-Panamanian clients, investment income, and royalties from overseas — pays zero Panamanian corporate tax. Only income from activities physically taking place in Panama is subject to the 25% standard rate.

Annual franchise tax of approximately $300 applies regardless of activity or income. Panama has no capital gains tax on foreign transactions.

Banking

Banking Options for Panama Companies

Panama offers accessible US dollar banking through Banco Nacional de Panama, Banistmo, BAC International, and Global Bank. International USD account transfers are straightforward and banking relationships are durable. Account opening requires solid KYC documentation and a clear business purpose — the post-Mossack Fonseca era has brought significantly higher due diligence standards.

How we work

Our Registration Process

Free consultation

Assess your structure, goals, and whether Panama is right for your situation.

Document preparation

Corporate documents, KYC package, and business description prepared by our team.

Name check and reservation

Verify name availability in the Panama official registry.

Filing and submission

We handle all filings, correspondence, and communications with the registry.

Registration and delivery

Digital and physical corporate documents delivered. Banking introduction begins.

Quick check

Is Panama Right for You?

Answer 4 quick questions — get a personalised recommendation from our team.

1. What best describes your business?

2. What is your expected annual turnover?

3. Is banking access a priority?

4. What is most important to you?

Our team will prepare a personalised structure recommendation for Panama. Contact us:

Email Us → Telegram

Comparison

How Panama Compares

Aspect	Panama	BVI	Seychelles	Marshall Islands
Corp. tax on foreign income	0%	0%	0%	0%
Currency	USD	USD	USD	USD
Banking ease	Good	Medium	Medium	Medium
Shareholder privacy	High	High	High	High
Asset protection	Excellent	Good	Good	Good

What to avoid

Common Mistakes When Registering in Panama

Confusing Panama SA with a fully anonymous structure

Post-FATF reforms mean Panama now maintains beneficial ownership registers accessible to competent authorities. Complete anonymity no longer exists.

Not maintaining a registered agent

A locally licensed registered agent is legally required. Many clients discover this gap when banks request agent information.

Ignoring FATF/OECD grey list history

Panama has been on and removed from various grey lists. Third-country banks may apply additional due diligence to Panama entities regardless of current compliance status.

Not documenting foreign-source income

The territorial exemption requires proper documentation demonstrating that income derives from foreign sources. Poor documentation creates tax risk.

Using Panama SA for cryptocurrency activities without licensing

Panama does not have a specific crypto licensing regime. Using a Panama company for VASP activities creates regulatory uncertainty.

FAQ

Frequently Asked Questions

Is Panama on the FATF blacklist?▾

Panama was removed from the FATF grey list in October 2023 following comprehensive AML reforms. Enhanced due diligence from some banks may persist.

Do shareholders have to be publicly registered?▾

No — shareholders are recorded in the company's internal register but are not part of the public registry. Nominee shareholders further enhance privacy.

Can a Panama company trade internationally?▾

Yes — this is Panama's core use case. International trading companies use Panama SA to buy and sell goods and services globally with zero tax on the foreign-sourced profits.

What is the annual cost of a Panama company?▾

Registered agent fees ($500–1,500 annually), government franchise tax (~$300), and nominee services if used. Total annual cost from approximately $1,200–2,500.

Is the Panama Foundation different from a company?▾

Yes — Panamanian Foundations are asset protection and estate planning vehicles, not trading companies. They have different legal and tax treatment.

How are Panama companies used in holding structures?▾

Panama SAs are commonly used as intermediate holding companies in multi-tier structures, particularly for holding shares in Latin American subsidiaries.