Company formation in Panama
A founder can be a foreigner who does not live in Panama, and tax is paid only on Panamanian income. But a missed $300 annual fee suspends the company. We cover the rules, the steps and the payments.
The main company form in Panama is the corporation (sociedad anónima) under Law 32 of 1927. It can be formed by two or more adults of any nationality, even if they do not live in Panama. The company is registered with the Public Registry of Panama through a lawyer who becomes its resident agent: under the tax authority's rules the agent links the company with the state and checks that the annual fee is paid.
Who it suits and what is required
A Panama corporation is chosen for international trade and services and for holding shares, vessels and property. Tax is charged only on Panama-source income, and a business licence is needed only by those operating inside the country.
- Subscribers. The articles are signed by at least two people. Usually these are staff of the law firm, and after registration the shares go to the owner.
- Directors. At least three, of any nationality and residence; the officers must include a president, a secretary and a treasurer. Directors' names are visible in the Public Registry, shareholders' names are not.
- Capital. There is no minimum paid-up capital, and nothing has to be deposited before registration.
- Resident agent. Mandatory: a Panamanian lawyer or law firm.
- Bearer shares. Permitted, but the certificates must be held by an authorised custodian, so in practice registered shares are issued.
Costs: mandatory payments
Every corporation, limited liability company and other entity registered in Panama pays, at registration and then every year, a single annual fee of B/.300, that is $300 (the balboa is pegged to the dollar), according to the Panama tax authority. Companies registered between January and June pay by 15 July, those registered between July and December by 15 January.
| Payment | Amount |
|---|---|
| Annual fee for a corporation, at registration and every year | $300 |
| Annual fee for a private interest foundation | $400 |
| Surcharge for late payment of the fee | $50 |
| Reinstatement fine after three unpaid periods | $1,000 |
| Registry charge on reinstatement | $25 |
After three unpaid periods the company is suspended: the Public Registry does not register its documents or issue certificates until the arrears, surcharges and fine are paid. On top of the fee come the notary, the Public Registry and the resident agent. Our formation services are in the fee table below.
A single $300 annual fee - and non-payers are suspended
You cannot register a Panama company without a resident agent. But even with one, mistakes cost more than the fees: a missed single-fee deadline on 15 July or 15 January that gets the company suspended, beneficial owner data not given to the agent, records not kept with the agent, a bank that will not open an account for a company with no activity. Murblz specialists register the company through the agent, keep the beneficial ownership register and fee deadlines and support the account opening.
The cost of support depends on the company type, ownership structure and whether you need an account; a manager will calculate it in the chat.
Beneficial ownership register
Under Law 129 of 2020 the resident agent enters the company and its ultimate beneficial owners in a private single register within 15 working days of incorporation. The register is kept by the supervisory authority and is not public.
Tax
Panama charges income tax only on Panamanian-source income, according to the tax authority; the corporate rate is 25%. Income from work outside Panama is not subject to Panamanian tax, but the owner's country of residence may tax it.
How registration works
- Reviewing the task: why the company, where the accounts and counterparties are, whether nominee directors are needed.
- Reserving the name and drafting the articles.
- Signing the articles before a notary and registering with the Public Registry.
- Beneficial ownership entries within 15 working days and payment of the annual fee.
- Bank account and annual renewal.
Timeline by step
| Step | Time |
|---|---|
| Owner checks and document preparation | depends on how quickly you gather the documents on the checklist |
| Articles, notary and registration with the Public Registry | usually about a week |
| Beneficial ownership entry | within 15 working days of registration |
| First annual fee | at registration |
| Bank account | from several weeks: the bank runs its own checks |
| Accounting records to the resident agent | every year by 30 April for a calendar financial year |
What documents you need
A passport and proof of address for each founder and director, beneficial ownership details, a description of the business and the source of funds; for the bank, references and statements. Documents not in Spanish are translated and foreign ones apostilled.
Bookkeeping, filing with the agent and residence
- Since 2017 every Panamanian company must keep accounting records and supporting documents for at least 5 years, even if it operates only abroad.
- Under a 2021 law a copy of the records is given to the registered agent within 4 months of financial year end, by 30 April for a calendar year.
- Accounting breaches carry a fine of $5,000 to $1,000,000 for the company and $5,000 to $100,000 for the agent, so agents do not serve companies without accounts.
- Under Decree No. 17 of 8 September 2026, qualified investor residence is granted for buying a new home from a developer from $300,000, a resale home from $500,000, or a fixed-term deposit from $500,000 at a state bank.
- The annual fee for a corporation is $300; after long non-payment the company loses the right to registry filings, and reinstating it costs more than paying on time.
We keep Panamanian company accounts as a separate service; details are on the Panama company accounts page.
Common reasons for refusal
- the source of funds cannot be documented;
- an owner, director or counterparty is on a sanctions list;
- the business description does not match the actual payments;
- the structure does not reveal the person who owns or controls the company: the agent must know every ultimate owner with 25% or more;
- the activity requires a licence, such as financial services, payment processing or gambling, and there is none;
- the company keeps no accounting records: the agent will not take it on or renew it.
Most refusals come not from the registry but from the agent and the bank, so we check the questionnaire and documents against their requirements before filing.
Restrictions for certain nationalities
Panamanian law does not restrict the nationality of subscribers, directors or shareholders. But the resident agent and the bank must check clients under anti-money-laundering rules. Citizens and residents of countries on high-risk lists and of sanctioned countries, including Russia and Belarus, face enhanced checks, and some agents and banks do not work with such clients. We find out in advance whether the agent and the bank will accept your profile, and only then prepare the documents.
What we do
Murblz specialists, together with a partner lawyer who becomes the resident agent, draft the articles, handle registration and the beneficial ownership entries, track the annual fee deadline and help open the bank account.
A manager in the chat will calculate the exact quote for your structure, with or without nominee directors, a bank account and bookkeeping.
Fees
| Service | Price |
|---|---|
| Company registration, Base package | $5 000 |
| Company registration, Package with nominee service | $11 600 |
| Company registration, Package with bank pre-approval | $12 900 |
| Company name reservation | $100 |
We will calculate online the cost of registering and running your company for the first year.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
How much does it cost to register a company in Panama?
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Need a company in Panama?
We choose between a Panamanian corporation and a limited liability company, register it through a local agent and help with the account and the annual state fee. The catalogue covers every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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