How to Set Up Business in Panama

The Republic of Panama is one of the world's most vibrant and free economies. Panama grants several opportunities to local as well as international entrepreneurs. If you're planning to set up a Business in Panama, then our team of experts at Enterslice will help you establish your presence in Panama easily and quickly. With the help of our team, you can make your presence count in Panama!

Benefits of Entering Panama

Enhance productivity and growth

Low Entry Barriers

No Tax on overseas profits

Easy Company Registration Process

Growing Start-up Culture

Politically Stable Economy

Favourable tax laws

1Trade Benefits

Confidentiality and Privacy laws

Stable Government

No Lifting of Corporate Veil

Anonymous Ownership

Types of Business Structure in Panama

General Partnership (‘Sociedad Colectiva General’)

In this business structure, the partners have joint unlimited liability. It implies that for the mistake of one partner, all the partners have to suffer.

Limited Liability Company (‘Sociedad Colectiva Limitada’)

Limited Liability Company can have partners between 2 to 20. Partners must be registered at the Public Registry Office. Partners can be either natural or legal persons. The share capital is merged with the contributions of the partners and can be in any currency.

Limited Partnership (‘Sociedad en Comandita Simple’)

Limited Partnership is a hybrid business structure between a general partnership and a joint stock company. In this, the partnership coexists between partners who contribute work and general partners who contribute capital but are dormant in the management of the business.

Limited Partnership by Shares (‘Sociedad en Comandita por Acciones’)

In this type of business structure, the capital is divided into shares depending on the contributions of the partners. Here one of the partners is responsible for the administration of the company and has an obligation towards the company while the rest of the partners don't have this responsibility.

Stock Company (‘Sociedad Anonima’)

This is the most preferred type of business structure in Panama. Various tax benefits are available under this structure. Its capital depends upon the economic contribution of all its partners. It is divided into shares. At least 2 persons must be of any other nationality and not be a domicile in Panama.

Foreign Corporation (‘Sociedad Anonima Extrajera’)

Those foreign corporations that register some of their Documents in the Public Registry Office are considered to be valid to avail benefits under the Panamanian legislation.

Individual Limited Liability Companies (‘Empresas Individuales de Responsabilidad Limitada’)

In this business structure, there is only one owner. The owner transfers the assets of the business and the liability of the owner is limited to the extent of the assets transferred.

Different Types of Taxes in the Panama

Individual Income Tax

Corporate Tax

VAT/GST or ITBMS (Impuesto de transferencia de Bienes Muebles y Prestacion de Servicios)

Insurance Tax

Dividend Tax

Withholding Tax

Social Security Contributions

Selective consumption tax or ISC (Impuesto selectivo al consumo)

Capital Gains Tax

Stamp Duty

About our Services

Enterslice is a leading management consultancy firm that offers end-to-end business set-up, financial, regulatory, taxation, legal, and advisory services to early-stage businesses, start-ups, entrepreneurs, and large corporate houses across the globe.

Our Panama Entry Strategy includes the following services:

Taxation Services

Taxation Services

Tax and Auditing Compliance

Intellectual Property Services

Intellectual Property Services

Trademark Registration

About Panama Entry Strategy

Our Panama Entry Strategy is classified into the following:

Business set-up Services

Our business set-up services include advisory related to the type of business structure one should opt for while setting up a business in Panama. There are various business structures in Panama. Our team analyzes and recommends the most suitable business structure for your business. After choosing the business structure, we assist in business formation and registration. We assist in Paper works relating to business registration and assist in opening a bank account in Panama. We also assist in obtaining licenses and permits.

Consultancy Services

Consultancy services pertaining to managing business in Panama are provided by our team. Consultancy services include maintenance of proper records and Documents and advisory relating to filing requirements and compliance.

Legal Advisory Services

Our legal experts advise on legal issues and concerns pertaining to contract disputes, corporate decisions, corporate growth, and other practices. Our legal team also assists in preparing and reviewing legal Paper works related to the business establishment and operation.

Tax and Audit Services

Our team provides tax compliance and audit services. We assist in obtaining tax registration. We advise and guide regarding the maintenance of proper records, invoices, and Documents regarding business operations. We provide auditing services as and when required by the tax administration.

Intellectual Property Advisory Services

Our IP experts provide legal advice on the protection of Intellectual Property and formulate strategies for obtaining Trademark Registration in Panama by filing a trademark registration application. We also advise on various IP-related issues.

FAQ Section

Panama is an ideal location to start or expand your business. It has an advantageous location as well as flexible laws which ease doing business in Panama. It is a tax haven country and follows a ‘no information exchange’ policy so the details of the business remain private.

A minimum of 3 directors and 1 shareholder is required for an offshore company in Panama.

Yes. In order to attract foreign investment Panama provides very benefits such as the right to manage investment earnings as they prefer. Panama provides an exemption from payment of Income Tax for companies incorporated in Panama but generating income abroad. Further, the total exemption is provided from payment of tax on movable goods and services on activities carried out outside Panama.

Yes. Enterslice has an experienced team of lawyers who provide end-to-end assistance in drafting relevant legal and contractual Documents.

Incorporating a company in Panama is a simple process. The steps in incorporating a company in Panama are as follows:

i. Formulate the company's bye-laws

ii. Registration of the company with the government authority

iii. Open a Bank Account in Panama

iv. Start operating your business after obtaining the relevant license

Panama has strict laws maintaining confidentiality and privacy. It has a reliable bank account and corporate book secrecy laws. The constitutional law of Panama also protects the privacy and confidentiality of the information. Panama has no concept of "Lifting of Corporate Veil" which ensures that the corporate books and information remain 100% private and confidential.

Our Offerings

Why choose Us

15+ years of Industry Experience.
Global Network of CPA’s and Attorney’s
Million Satisfied Clients.
Globally recognized consultancy with a presence over 22+countries.

Why Enterslice

24x7 Client relationship support desk.

Tech-enabled service delivery platform.

Dedicated foreign Investment desk.

50,000+ Network of Lawyers/Attorney’s/CA/CPA/CFA.

Strong team of Inhouse Lawyers/Attorney’s/CA/CPA/CFA


A wide Network of Audit and Law firms in India.

Individual and Dedicated professionals on every assignment.

We register 100+ Companies every Month

Connect with Enterslice today to connect with our team of Skilled Professionals, to avail any of our Premium Services.

If you have any queries related to the Process, feel free to contact us. We will provide
you with immediate help.

We partner with more than 100+ companies

-- Testimonials

Don't take our word for it

In the news

Get Started Live Chat

Get Expert Guidance