Panama Companies & Foundations
Incorporation & Compliance Guide
Incorporate a Panama International Business Company (IBC) or Private Interest Foundation (PIF) in just 24–48 hours and unlock the advantages of Latin America’s premier offshore hub. Governed by the time-tested Corporations Law 32 of 1927 and enhanced by Law 129 (beneficial-ownership register) and Law 254 (accounting-records reforms), Panama combines a **territorial tax system—0 % on foreign-sourced income—**with robust privacy, bilingual banking and a pro-business legal framework. Our end-to-end Panama company-formation service secures name reservation, drafts bespoke Articles or Foundation Charter, files electronically at the Public Registry, provides licensed resident-agent services, completes RUPA beneficial-ownership and accounting-records notices, and introduces you to top-tier local or international banks—delivering a fully compliant, tax-efficient vehicle optimised for asset protection, global trading or estate planning.
1 | Why Choose Panama?
- Long‑standing corporate statute — Law 32 of 1927 still offers unmatched contractual freedom.
- Territorial tax system — profits earned outside Panama are not subject to local income tax.
- Rapid formation — same‑day electronic filings at the Public Registry; no visit to Panama required.
- Global banking reach — 70+ international banks in the Colón Free Zone and Panama City.
- Versatile toolkit — pair an IBC with a Private Interest Foundation for estate planning & asset protection.
2 | Core Legislation & 2021‑24 Updates
Statute / Regulation | Highlights | |
|---|---|---|
Corporations Law 32 (1927) | Still the backbone for “Sociedades Anónimas”; bearer‑share immobilisation since Law 47 (2013). | |
Law 25 of 1995 – Private Interest Foundations | Succession‑planning vehicle separate from shareholders; no owners, only beneficiaries. | |
Law 129 of 2020 – RUPA Beneficial‑Ownership Register | Resident agents must file UBO data; register is non‑public but fines apply for late filing (US $1k–5k). | |
Law 254 of 2021 + Decree 177 (Dec 2024) | Mandatory accounting records & supporting docs; location notice to resident agent. | |
OECD Economic‑Substance Resolution 2023 | Panama maintains “no substantial-activity” carve‑out but requires annual declaration via resident agent. |
3 | Entity Features at a Glance
Feature | Panama IBC | Private Interest Foundation (PIF) |
|---|---|---|
Legal personality | Separate corporation | Separate legal estate (no shareholders) |
Minimum capital | None; standard 10k authorised | Endowment ≥ US $10,000 (can be nominal) |
Directors / Council | ≥ 3 directors (or 1 corporate) | Foundation Council ≥ 3, or one corporate councilor |
Shareholder privacy | Yes (register kept by agent) | Beneficiaries kept confidential within Regulations |
Annual Govt. fee | US $300 (Tasa Única) | US $400 |
Accounting records | Keep & file location notice (Law 254) | Same (Law 254) |
BO register filing | Required (resident agent within 15 days) | Required |
Redomiciliation | Inward & outward continuation allowed | Same |
4 | Incorporation Timeline (48 Hours)
- Name check & reservation (2 hours)
- KYC onboarding – passport, proof‑of‑address, source‑of‑funds.
- Draft Articles / Foundation Charter – tailored share structure or foundation purposes.
- Electronic filing at Public Registry; digital Certificate issued.
- Post‑incorporation – board/council resolutions, share certificates, Regulations (for PIF).
- UBO Register & Accounting‑Records notice filed by resident agent.
- Bank‑account introduction – local or international institutions; compliance pack prep.
5 | Annual Maintenance Matrix
Obligation | IBC | PIF | Deadline |
|---|---|---|---|
Government Tasa Única | US $300 | US $400 | 15 Jul (IBC) / 30 Apr (PIF) |
Accounting‑records location notice | ✔ | ✔ | Within 60 days of FY‑end |
UBO register update (RUPA) | ✔ | ✔ | 15 days of any change |
Resident‑agent renewal | ✔ | ✔ | Annually |
Economic‑substance declaration* | If “relevant activity” | If “relevant activity” | With agent each year |
*Panama currently exempts pure holding companies from full ES testing but still requires a declaration.
6 | Fixed‑Fee Incorporation Packages
Entity | Package Price* |
|---|---|
Panama IBC | US $2,700 |
Private Interest Foundation | US $3,150 |
*Includes government filing fee, resident‑agent service (Year 1), bespoke charter/Articles, digital corporate kit, UBO filing, accounting‑records notice, and one bank‑introduction.
7 | Complementary Services
- Bearer‑Share immobilisation & custodian services
- Redomiciliation to/from BVI, Bahamas, Cayman
- Segregated Portfolio Company (Panama SAFI) setup
- Foundation Council services & Protector appointments
- Panama 20‑FP / 50‑FP Private Fund structuring
Ready to Incorporate in Panama?
Book a 20‑minute strategy call and receive a personalised roadmap to launch your Panama IBC or Foundation.