Doing business in Panama
A living guide: 8 pages, every rule cited to its norm, article, date and official text. Last verified 2026-10-29. Information summary, not legal advice.
Related: Panama country profile · live dashboard · central bank and release calendar · our posts on X
4. Entities and setup
- Choosing a legal entity in Panama: sociedad anónima, limited liability company, branch, private interest foundation or sociedad de emprendimiento
- Sociedad anónima (S.A.) in Panama: formation under Ley 32 de 1927, three directors, no minimum capital, bearer share custody and the B/.300 tasa única
- Sociedad de responsabilidad limitada (S. de R.L.) in Panama: Ley 4 de 2009, two or more partners, quotas, administrators and transfer consent
- Branch of a foreign company in Panama: registering a foreign sociedad anónima under Ley 32 de 1927, documents, the B/.5,000 penalty and the annual fee
- Private interest foundation (fundación de interés privado) in Panama: Ley 25 de 1995, B/.10,000 initial patrimony, foundation council and the B/.350 and B/.400 annual fee
- Sociedad de emprendimiento in Panama: Ley 186 de 2020 as amended by Ley 451 de 2024, resident founders only, two year tax and fee holiday, B/.1,000,000 revenue cap
- Resident agent and beneficial ownership in Panama: Ley 129 de 2020 registry, 15 business day deadlines, fines up to B/.50,000 per entity and suspension of corporate rights
- Annual compliance for Panamanian companies and foundations: tasa única dates, accounting records to the resident agent by 30 April, suspension, B/.1,000 reactivation and the 2026 dissolution of suspended entities
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