If you are a foreigner and want to register your Business in Panama, do know this data, in the country the official currency is balboa along with the dollar, both have the same value
Thanks to that The projected trend for Panama’s gross domestic product (GDP) indicates a consistent growth from 2023 to 2028, with an anticipated increase of 28.3 billion U.S. dollars (+34.2 percent). Following eight consecutive years of expansion, the GDP is expected to reach a new peak of 111.05 billion U.S. dollars in 2028.
What is the most profitable business in Panama?
If you already have a business to register in Panama, you should consider factors such as the type of business in Panama, formation of societies and tax rates. They can save you thousands of dollars or generate more problems.
There are so many types of legal figures to register a company as possibilities to choose the wrong one, here we leave you the 3 most common looking entrepreneurs:
Panama Corporation (Sociedad Anónima – S.A.):
A Panama Corporation (S.A.) is a business entity in Panama with limited liability for shareholders. Known for privacy and structural flexibility, it resembles a public limited company.
Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L.):
A Limited Liability Company (LLC) or Sociedad de Responsabilidad Limitada (S.R.L.) combines features of a corporation and partnership. It provides liability protection to members, safeguarding personal assets.
Private Interest Foundation (Fundacion de Interes Privado):
A Private Interest Foundation is a legal entity used for wealth management and asset protection. It allows individuals to allocate assets for specific purposes, such as charity or family benefit, with governance by a foundation council.
It is a partnership structure where individuals combine resources for a common purpose, often professional or commercial. Unlike corporations, it lacks a legal personality and doesn’t provide limited liability, making each partner personally responsible for the business’s debts and obligations.
Requirements to set up a business in Panama.
First of all there is a basic information that you must provide to register a company in Panama, These requirements are strongly regulated by the type of company you want to create and may vary in each case.
On the other hand, to create a new company in Panama, we need you to provide us with the following information:
- Two or three possible names to verify availability in the Public Registry.
- The domicile of the company.
- The main objects of society.
- The name of 3 different people (president, secretary and treasurer).
How to set up a business in Panama in 5 Steps?
find below the Five steps for establishing a Sociedad Anónima (S.A.) in Panama.
Step 1: Determine the name and structure of your company
Step 2: Company Incorporation – Draft and sign bylaws
Step 3: Register your company in Panama
Step 4: Banking and Tax Identification Number (RUC)
Step 5: Obtain Municipal Commercial License
How much does it cost to set up a company in Panama?
The incorporation costs for a Panama LLC in year 1 amount to US$1,950, and annual company costs in year 2 and thereafter amount to US$0. However, there are additional costs that you should consider, such as the annual fee for the registered agent.
The registered agent is a legal requirement for all companies in Panama and is responsible for receiving legal documents and other official correspondence on behalf of the company. The annual fee for a registered agent can range from US$500 to US$1,000 23. Additionally, there is an annual corporate tax of US$300 that must be paid to the government 3.