Panama — Business: Company Formation

Key facts

• Under Law 32 of 1927, a sociedad anónima can be formed by two or more people of any nationality, even without a Panamanian domicile, by signing a pacto social.
• The guide states that both S.A.s and S.R.L.s must register in the Public Registry, have their own legal personality, and need a notary (or trust and company service provider) to form.
• Both entity types must have a registered (resident) agent in Panama.
• For an S.A., the guide states there is no residency requirement for directors or officers and no obligation to keep a bank account in Panama.
• Tax returns are mandatory for both S.A.s and S.R.L.s where the entity is formed in Panama and its income is not foreign-sourced.
• Bearer shares are permitted only under the custody regime of Law 47 of 2013 (amended by Law 18 of 2015).
• Beneficial owners of both entity types must be reported and their identity verified under Panama's beneficial-ownership regime.
• The guide does not give minimum capital, fees or registration times; those come from the Public Registry and Panama Emprende.

Steps

1. Step 1: Choose a Business Structure — Select from various options, including SA, Corporation, or Limited Liability Company, each with its own set of requirements and benefits.
2. Step 2: Register the Business — File the necessary documents with the Public Registry, including the articles of incorporation and bylaws.
3. Step 3: Obtain Licenses and Permits — Depending on the industry and type of business, additional licenses and permits may be required, but specifics are uncertain without further research.