Most first-hand reports shared here ended in success.
Based on 1 first-hand report shared by the community — 1 reported success — for company in Panama. Reviewed for 2026.
Panama: company formation for location-independent founders. Panama is outside the EU with a 25% corporate tax rate, rated high as an incorporation base for nomads and online businesses.
Sociedad de Responsabilidad Limitada (S. de R.L.) (S. de R.L.). Limited liability. Minimum capital €1 / none. Bookkeeping required. No audit. Beneficial owner is public. No local substance required.
Sociedad Anónima (S.A.) (S.A.). Limited liability. Minimum capital €1 / none. Bookkeeping required. No audit. Beneficial owner stays private. No local substance required.
Substance & taxation. A company on paper here does not move your tax home: if you run it from another country, controlled-foreign-company and place-of-effective-management rules can tax the profits where the business is really managed. Panama works best when its structure matches where you actually live and work.
What applicants report. Members have shared 1 first-hand report. reported timelines include Company live in 1-2 weeks. Getting crypto/financial approvals takes far longer.. common friction points: Setting up the SRL itself is straightforward via high-quality agents (costing around $800 - $1,500). However, opening a corporate bank account in Panama for a foreign-owned entity is notoriously difficult, taking months with massive paperwork requirements, leading most physical/digital nomads to open EMI accounts overseas.. practical tips: Keep the authorized capital at $10,000 to minimize the local notary and registry registration fees.; Rely on international multi-currency EMIs rather than trying to open physical banks inside Panama if you do not reside there.. Treat this as community orientation, not a guarantee.
Bottom line. For most location-independent founders the Sociedad de Responsabilidad Limitada (S. de R.L.) (S. de R.L.) is the natural starting point. Panama works best when the structure matches where you actually live and manage the business — get substance and place-of-effective-management right before you incorporate, not after.
Curated legal forms relevant for foreign founders. Set your situation to see structure-fit flags (CFC / effective management).
Liabilitylimited
Min capital€0 · No minimum capital (Law 4 of 2009, Art. 8-9); declarable in any currency, partly payable at formation.
Accountingrequired
Auditnot required
Company registerpublic
UBO registerpublic
Min shareholders2
Min directors1
Local directornot required
Substancenot required
Local businessallowed
TaxSame territorial system as the S.A.: Panama-source income 25% CIT; foreign-source income 0%. Law 4/2009 Art. 28 allows pass-through to partners. Annual tasa única ~USD 300.
Grouped by legal form — each applicant type is a row. Colour shows the reported outcome.
foreign owned companyset up1 voice · early signal
Panama SRL functions similarly to a US LLC, combining corporate liability shields with partnership tax flexibility. It is an exceptional offshore structure due to its strict territorial tax model (0% foreign tax) and high confidentiality.
Matches your experience?
Local resident agent (mandatory Panamanian lawyer)Minimum 2 members/shareholders during formation (can be foreign individuals/corporates)Registered corporate book entries
Conditions: No annual corporate declaration or tax filing is required as long as all revenue is earned outside of Panama (foreign-source).
Watch out: Failing to pay the annual Tasa Única (USD 300) for three consecutive years results in automatic suspension of all company actions and a heavy $1,000 rehabilitation fine.
Tips: Keep the authorized capital at $10,000 to minimize the local notary and registry registration fees. · Rely on international multi-currency EMIs rather than trying to open physical banks inside Panama if you do not reside there.
last seen 2024-06-18aged
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