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Company Formation Panama

Updated on Monday 23rd April 2018

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BridgeWest offers full company formation packages in Panama, in order to cover any of your various business needs: opening representative offices, establishing branches or subsidiaries, starting an NGO, providing accounting services or legal consultancy, tax planning and tax minimization strategy.

Offshore Company Formation in Panama

BridgeWest has a specialized team ready to assist you with complete company formation services in Panama, a jurisdiction that offers many prospects for business entrepreneurs.

 There is no minimum share capital requested at the incorporation of a corporation in Panama. The inheritance taxes are not required in Panama. The offshore companies are exempt from paying taxes in Panama.


There are 3 normal business entities that be can be easily opened in Panama:  Sole Proprietor, Partnership, and Corporation.

 In order to start a corporation in Panama (the most common form of business), the following easy steps are required:

 1. Before incorporation, the name of the company must be reserved at the Public Registry. If it’s available, it must contain one of the following terminations: Corp. (Corporation), Inc. (Incorporated) or SA (Sociedad Anonima).

 2. The Articles of Incorporation are public and must be registered at the Panama Public Registry. If the Articles are written in another language than Spanish, an official translation must accompany it.

3.  A Notice of Operation is necessary in order to perform certain business and commercial activities.

4. After incorporation, only a single shareholder is necessary in order to start the activities in this type of company. The capital of the corporation is divided into shares which contains attached to it the rights and the obligation of the owners. Even the right to vote is attached to the shares.

5. Opening a bank account in Panama requires the personal presence of the company’s representative because one of the requirements is a personal interview with him.

An offshore company can be incorporated in about 2 business days in Panama.


-  At registration of a corporation in Panama are required minimum two founders.
- The corporations must have at least one shareholder after registration.
- The Board of Directors consists in at least three directors, one President, one Treasurer and a Secretary.
- An annual license fee must be paid every year by the corporations.
- The industrial or commercial companies must have a Notice of Operation, before starting any activities. Exceptions are permitted.


- drafting the Articles of Association (necessary for the company incorporation in PANAMA; The Articles of Association of the PANAMA company can be signed through Power of Attorney.

- drafting all other documents required for the incorporation of the PANAMA company; these documents include: Specimen Signatures, Special Forms provided by the Company Registration Office in PANAMA, passport copies etc.

- offering a Registered Office in PANAMA for your company, which is mandatory to have for starting a business in this offshore jurisdiction. (The registered office may be any address where the PANAMA Company declares to have its headquarters)

- setting up a bank account for your PANAMA company.


- The companies from Panama are following the regulations of the Commercial Code and various other laws.
-  Income earned from outside of Panama is not taxable in Panama.
- The local companies or the one that performs commercial activities are not excluded from paying certain taxes.
- The Value Added Tax has is 7% for certain products and services, 10% for alcohol and 15% for cigarettes in Panama.
- The foreign companies that are not operating in Panama are not allowed to register for VAT.
- The personnel of Panama are easy to be found through the recruitments agencies. The labor force is educated and the majority of candidates are English speaker which is clearly an advantage fro the foreign companies willing to operate business here.
- Panama is situated in the Central America, bordered by the Caribbean and the Pacific Ocean. It’s considered one of the most important offshore jurisdictions of the world.
- The foreigners are attracted by the price discounts and advantageous taxes offered in the tourism sector.

Bridgewest provides company formation services in PANAMA. Please contact us for more information and prices.


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