Set Up a Company in Panama
Step-by-step guide to setting up your company in Panama: entity types, legal process, timeline, and costs. Corporation, LLC, branch or representative office.
Why Panama for Your Company?
Panama offers an exceptional environment for establishing your company. With the US dollar as its official currency, a territorial tax system that does not tax foreign-source income, and its position as the regional hub of the Americas, the country has become the preferred destination for international entrepreneurs.
For a complete analysis of Panama's competitive advantages, visit our guide Why Panama.
Legal Entity Types
Panama offers four main types of legal entities, each designed for different business needs and objectives.
Corporation (Sociedad Anónima / SA)
The most common
- ◆Minimum 3 directors and 1 shareholder
- ◆Registered or bearer shares
- ◆Minimum capital: none
- ◆Ideal for local and international operations
Limited Liability Company (SRL)
Small/medium businesses
- ◆Maximum 25 partners
- ◆Each partner liable only up to their contribution
- ◆Ideal for small and medium-sized businesses
Branch Office
Extension of a foreign company
- ◆Operates under the legal entity of the parent company
- ◆Must be registered with the Public Registry
- ◆Ideal for companies already operating internationally
Representative Office
Exploratory phase
- ◆Cannot generate revenue in Panama
- ◆Limited to promotion, market research, and supervision activities
- ◆Ideal for the exploratory phase before formally establishing
3-Step Process
Structure Definition
- •Choose entity type based on your objectives
- •Define share capital
- •Appoint directors and/or partners
Legal Incorporation
- •Public deed before a notary
- •Registration with the Public Registry
- •Obtain RUC (tax registration number)
- •Open a bank account
Operations
- •Operations notice (municipal permit)
- •Register with CSS (social security)
- •Hire personnel
Timeline and Costs
Corporation (SA)
2–3 weeks
Estimated cost: $1,500 – $3,000
LLC (SRL)
3–4 weeks
Estimated cost: $1,500 – $2,500
Branch Office
4–6 weeks
Estimated cost: $2,000 – $4,000
The Limestone Advantage
You don't have to navigate the bureaucracy alone. Limestone Group acts as your single point of contact coordinating lawyers, accountants, banks, and government — so you can focus on your business.
Learn more about our Local Representation service.
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