Why Choose Panama for Company Formation?
Panama is one of the world's longest-established offshore jurisdictions, known for its territorial tax system, its versatile corporation, and the Private Interest Foundation. It pairs a tested civil-law framework with a US-dollar economy:
Territorial Tax System. Panama taxes Panama-source income only; income earned outside Panama is generally not subject to Panamanian income tax
100% Foreign Ownership. Shareholders, directors, and foundation council members may be of any nationality and reside anywhere
No Minimum Paid-In Capital. There is no requirement to pay in the authorized capital to incorporate
Established Legal Framework. The corporation is governed by Law 32 of 1927 and the foundation by Law 25 of 1995, two long-standing, well-tested regimes
Strong Privacy Tradition. A long privacy tradition, now applied within modern beneficial-ownership and AML transparency rules
Asset Protection and Succession. The Private Interest Foundation can hold assets outside the founder estate and override foreign forced-heirship rules
Versatile Structures. Suited to holding, asset protection, estate planning, international trade, and vessel ownership
US Dollar Economy. Panama uses the US dollar, simplifying cross-border holding and trade
Panama Entity Types
Corporation (Sociedad Anonima)
- Capital
- No paid-in minimum
- Members
- 1 shareholder; 3 directors
- Best for
- Holding, international trade, and investment under Law 32 of 1927
Private Interest Foundation
- Capital
- Endowment (commonly USD 10,000)
- Members
- Founder + foundation council
- Best for
- Asset protection, estate planning, and family wealth under Law 25 of 1995
Limited Liability Company (SRL)
- Capital
- No paid-in minimum
- Members
- 2 or more members typical
- Best for
- A flexible member-based vehicle for trade and holding
Corporation + Foundation
- Capital
- Combined
- Members
- Foundation owns the corporation
- Best for
- Layered holding and succession structures combining both vehicles
Common Uses for Panama Structures
International Holding
Hold shares in operating companies and investments across jurisdictions within a tax-neutral, US-dollar holding vehicle.
Asset Protection
Ring-fence assets within a Private Interest Foundation, which holds property outside the founder personal estate under a stable civil-law regime.
Foundations and Estate Planning
Use a Private Interest Foundation for succession planning, with assets distributed under its regulations and outside foreign forced-heirship rules.
International Trade and Vessels
Conduct cross-border trade through a Panama corporation, and hold vessels under Panama, one of the world largest ship registries.
Note: Costs are indicative and may change with your requirements and regulations. Contact us for a tailored quote.