Panama company formation for foreigners, done remotely

Why choose Panama company formation as a foreigner?

• Flexible corporate laws with a long tradition: the corporations law dates from 1927.
• The US dollar circulates as legal tender.
• A territorial tax system that, in general, taxes only Panama-source income.
• Directors, officers and shareholders can be of any nationality and live outside Panama.
• An international banking center and one of the largest ship registries in the world.
• A strengthened transparency framework: in 2023 Panama was removed from the FATF grey list, after creating its beneficial owner registry.

Which structure suits you?

The corporation (S.A.) is the most widely used: it can run a business, invest, hold real estate or own a vessel. The limited liability company (S. de R.L.) is an alternative with members instead of shareholders. The private interest foundation has no owners and is used to protect assets and organize how they will pass to your family. Many people combine a foundation with a corporation.

The choice depends on what you want to do and on the laws of the country where you live. We explain it in plain language before you decide.

Can everything be done remotely?

Yes. You send us your identification documents and sign what is needed from your country; we check the name, draft the documents, coordinate the notary and the registration at the Public Registry of Panama, and deliver everything digitally. If a document is signed outside Panama, we tell you whether it needs an apostille or legalization.

Documents you will usually need

• A copy of the valid passport of each person involved.
• Recent proof of address, such as a utility bill or bank statement.
• In some cases, a bank or professional reference.
• The structure's details: proposed name, purpose and the people who will be directors, officers or council members.

Steps to incorporate a company in Panama

1. Consultation: you tell us your goal and which country you are writing from.
2. Written quote: requirements, documents, estimated time and total cost, before you commit.
3. Due diligence: the resident agent verifies your identity, as required by Law 23 of 2015.
4. Documents: we draft the articles of incorporation or the foundation charter and coordinate the signatures.
5. Registration: the document is notarized and registered at the Public Registry of Panama.
6. Delivery: you receive the registered deed and the registration certificate, and we explain the annual obligations.

If you are writing from Europe, the Middle East, Asia or Africa

Distance does not change the process: everything is coordinated by email, in English or Spanish, and documents are signed in your country. What does change is how your documents are validated. If your country is part of the Hague Convention, documents you sign there are apostilled; if it is not, they are legalized through consular channels. Several countries in the Middle East, Asia and Africa follow the consular route, so we confirm it before you sign anything.

If originals must be sent, we tell you which documents need to travel on paper and which can be sent digitally. We deliver the registered documents digitally, and on paper if your bank or authority requires it.

What is a resident agent (registered agent)?

Every Panama corporation and foundation must have a resident agent, also known as a registered agent: a lawyer or law firm in Panama that files the documents at the Public Registry, knows its clients and keeps the information required by law. It is your official contact in Panama for as long as the company exists.

Does a Panama offshore company pay no taxes?

Not exactly. Panama generally taxes Panama-source income, so a company that earns its income outside Panama may not pay income tax in Panama. But that does not release it from the obligations of the country where its owners live, which may require reporting the company or its income. We recommend confirming your case with a tax adviser in your country.

Obligations after formation

• Paying the annual government fee set by Article 318-A of the Fiscal Code each year; we tell you the amount in your quote.
• Keeping a resident agent in place.
• Keeping accounting records under Law 52 of 2016.
• Keeping beneficial owner information up to date (Law 129 of 2020), which is confidential.

Legal basis

• Law 32 of 1927 (corporations), Law 4 of 2009 (limited liability companies) and Law 25 of 1995 (foundations).
• Law 23 of 2015, on due diligence.
• Law 52 of 2016 and Law 129 of 2020, on accounting records and beneficial owners.
• Hague Convention of 1961, for documents signed abroad.