Panama
The Panamanian Corporation is a flexible, low-maintenance international vehicle with strong privacy protections and a long history of cross-border use.
Key Benefits
Foreign-sourced income is generally exempt, which can be efficient for international structures and cross-border trading.
Panama SAs are widely used for holding assets, contracting internationally, and structuring ownership across jurisdictions.
Incorporation is typically completed in about 1–2 weeks once KYC and due diligence are cleared.
Supports flexible share classes and governance arrangements suited to holding and investment structures.
A well-recognized corporate form in Latin America for trading, contracting, and asset holding.
Tax Overview
Corporate Income Tax
Territorial system: Panama-source income is generally taxable; foreign-source is generally exempt.
Dividend Tax
Dividend tax treatment can vary based on source and structure; commonly a withholding applies for Panama-source earnings distributions.
Capital Gains Tax
Local-source gains may be taxable; foreign-source gains are typically outside scope under the territorial framework.
VAT (ITBMS)
Indirect tax on goods and services supplied in Panama (reduced/other rates may apply for specific categories).
Formation Process
We complete due diligence and confirm name availability with the local agent.
We prepare incorporation documents and internal resolutions for signature.
We file the incorporation package with the Public Registry via the resident agent.
Registry review and issuance of the company's incorporation evidence.
We deliver your certificates and a complete digital corporate document pack.
Pricing
Formation Package
$905
Annual Maintenance
$1,837/year
Add-ons
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Panama’s Sociedad Anónima (S.A.) is one of the oldest and most respected offshore corporate structures. It requires a minimum of three directors (which may be nominees) and can issue registered shares, providing both control and discretion for global entrepreneurs. Panama imposes no tax on foreign-source income, maintains modern AML compliance, and offers straightforward annual maintenance through a resident agent. With a well-developed legal system and a strategic position between North and South America, Panama remains a cornerstone jurisdiction for international company formation.
Form your Panama Corporation (Sociedad Anónima) in Panama and have your entity ready in 7-14 business days.
EntityEngine is a private facilitation platform, not a government agency or law firm. Information is general only (not legal/tax advice). Filings are completed by regulated third-party partners. Terms.