How to Register a Company in Panama: A Comprehensive Guide
With its strategic location bridging North and South America, favorable tax environment, and growing sectors in finance, tourism, and services, Panama has become a magnet for global corporations, from Sony to Nike. Known for its straightforward registration process and robust offshore financial system, Panama could be the ideal location for your next venture.
Aliant’s Panama office is well-equipped to guide you through each step, ensuring compliance and leveraging Panama’s unique advantages to maximize your business success.
Why Choose Panama for Business?
Panama is the second most popular jurisdiction for incorporating companies globally, hosting over 500,000 corporations and foundations.
Its robust shipping and export sectors are bolstered by the Panama Canal, while its tax structure and legal framework provide an attractive environment for both onshore and offshore businesses.
The country also offers investors access to the Albrook Mall, the largest commercial center in Latin America, and a burgeoning tourism industry rich in natural beauty.
Steps to Register a Company in Panama
Here’s a step-by-step guide to establishing your company in Panama:
Step 1: Choose a Company Name and Structure
The first step is deciding on a name and legal structure. Panama offers two main structures:
- Corporation (Sociedad Anónima – S.A.): The most popular choice, an S.A. offers limited liability for shareholders, insulating personal assets from company debts.
- Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L.): This structure also limits liability for investors, protecting personal assets while enabling efficient operations.
Tip: Choose carefully, as changing your business structure later can be a complex process. Aliant can assist with evaluating which structure best aligns with your business goals.
Step 2: Draft and Sign Bylaws
The bylaws, often referred to as the ‘constitution’ of your company, outline its operations, structure, and business objectives. They typically include:
- Board and shareholder meeting protocols
- Company details (name, address, type, etc.)
- Record-keeping requirements
- The company’s ‘objetivo social’ or main business activities
In Panama, you’ll need at least two shareholders, and at least one board member must be a Panamanian resident.
The legal representative must also be a Panamanian national. Aliant’s Panama office can help identify and appoint qualified local representatives to ensure compliance with local laws.
Step 3: Register Your Company
Formal registration solidifies your company’s legal presence in Panama. This process involves several sub-steps, each with a waiting period:
- Public Deed Creation: Present your bylaws to a Panamanian public notary to obtain a Public Deed, typically completed within 2–3 weeks.
- Public Registry Filing: After receiving your Public Deed, file with the Public Registry of Panama, which takes another 2–3 weeks.
- Tax Registration: Register with the General Office for Taxation and the Ministry of Commerce to obtain necessary licenses and permissions. This process requires approximately 2–3 weeks.
- Labor and Social Security Registration: Register with the Ministry of Labor and the Social Security Fund to prepare for future employee needs. Expect a 20–30 day processing period.
Note: Panama does not require a commercial license for companies operating exclusively offshore. Aliant can manage these steps entirely remotely, sparing you the need to be physically present.
Step 4: Open a Corporate Bank Account
The final step is setting up a Panamanian bank account to facilitate financial transactions. Panama has some of Central America’s top-rated banks, known for security and attractive investment conditions.
To open a corporate account:
- Partner with a local Panamanian entity.
- Choose a bank that aligns with your company’s needs.
- Complete the required documentation.
Aliant can connect you with reputable financial institutions, such as Banco General, Bladex, or Bancolombia Panama, and guide you through the account setup.
Why Aliant?
Navigating Panama’s regulatory landscape requires local expertise and international insight. Aliant offers a tailored approach to setting up your business in Panama.
Our experts ensure your company meets all legal requirements while taking advantage of Panama’s pro-business tax laws, including the territorial tax system that exempts offshore income from reporting requirements.
With Aliant, you have a trusted partner to simplify your Panama company registration, from strategic structure selection to final setup, letting you focus on growing your business in one of Latin America’s most dynamic markets.
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