Panama Company Formation for Foreigners
Forming a Sociedad Anónima (SA) is the most accessible way to establish an economic tie in Panama — and the most flexible path to qualify for the Friendly Nations Visa without a minimum investment amount.
5–10
Business days to incorporate
$1,500
Estimated initial cost (fees + disbursements)
0%
Tax on income generated outside Panama
Why form a company in Panama?
Owning shares in an active Panamanian company is one of the four qualified economic ties for the Friendly Nations Visa — alongside employment with a Panamanian company, real estate ($200k+), and a term deposit ($200k+). Unlike the other three, the company route has no minimum capital requirement.
Economic tie for the Friendly Nations Visa
Holding shares in an active SA qualifies as an economic tie — no minimum investment required. The most affordable option for nationals of the 50 eligible countries.
Legal structure for business activity
Provide services, import/export, or simply maintain a local legal entity. The SA is the standard format for any commercial activity in Panama.
Territorial tax system — foreign income untaxed
Panama uses a territorial tax principle. Income generated outside the country — from foreign clients, remote work, or international investments — is not taxed in Panama.
Improves bank account approval chances
Having an active Panamanian company is one of the factors that improve the chances of opening personal and corporate bank accounts in Panama.
What is a Panamanian Sociedad Anónima?
The Sociedad Anónima (SA) is the most common corporate structure in Panama. It is formed by a Public Deed before a notary and registered with the Public Registry. Key features:
- ✓ Minimum 3 directors (can be foreign nationals residing outside Panama)
- ✓ No minimum capital required by law
- ✓ Shareholders are not personally liable for company debts
- ✓ Can operate in Panama or serve as a holding for international assets
- ✓ Requires a licensed Resident Agent in Panama (included in the service)
- ✓ Annual Operations Notice (~$300) if operating within Panama
Incorporation process
Name and structure
Choose an available name in the Public Registry, define share capital, number of shares, and directors.
Articles of Incorporation
The attorney drafts and notarizes the Deed of Incorporation before a Panamanian notary.
Public Registry filing
The deed is registered with the Commercial Registry — a process of 5 to 10 business days.
Post-incorporation steps
Obtain RUC (Tax ID), open a corporate bank account, and file Operations Notice if operating locally.
Use as immigration tie
With the active SA in place, the attorney certifies your shareholding to include in the Friendly Nations Visa application.
Estimated costs
| Item | Estimated cost |
|---|---|
| Legal fees for incorporation | $800 – $1,200 |
| Notary and registry disbursements | $200 – $350 |
| Resident Agent (annual) | $250 – $400 / yr |
| Operations Notice (if operating locally) | ~$300 / yr |
| Annual government tax | $300 / yr |
Costs are estimates and vary by attorney and complexity. Contact us for an exact quote.
This is not for you if…
- — You are not a national of one of the 50 eligible countries for the Friendly Nations Visa — in that case, review the Qualified Investor Visa.
- — You want asset protection only, with no Panama activity — an SA holding may be excessive without international tax advice.
- — Your only goal is residency — if you have $200k available, a term deposit may be simpler than managing a company.
Ready to form your Panama company?
We guide you through the process and coordinate with Panamanian immigration and corporate attorneys. No commitment, no pressure.
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