Starting a business in Panama: foreigner's guide (2026)

Outside restricted sectors, foreigners may own and control a Panamanian company outright. Directors, shareholders, and officers may be of any nationality; no local partner or resident director is required.

Retail commerce, certain maritime services, and broadcast/media firms must be majority-owned by Panamanians under the Commercial Code and sector regulations. Foreigners may enter retail indirectly via franchise arrangements.

Key steps: (1) select company name and verify availability at Registro Público; (2) engage a licensed Panamanian resident agent/lawyer to draft the Pacto Social; (3) file with Registro Público — Mercantile Division; (4) obtain RUC (tax ID) from the Dirección General de Ingresos (DGI); (5) register with MICI and the Caja de Seguro Social if hiring locally. Standard processing is 3–10 business days; no physical presence required.

Panama imposes no mandatory paid-in capital for an S.A. or S.R.L. The conventionally cited authorized capital figure of US$10,000 is a standard drafting choice, not a statutory deposit requirement; no funds need to be lodged with any authority.

An S.A. requires at least three directors (President, Secretary, Treasurer) of any nationality, plus one or more shareholders (natural or legal persons). A resident agent who is a Panamanian lawyer or law firm is mandatory. The S.R.L. requires at least two partners.

Annual franchise tax of US$300 is due to the DGI. Bearer shares must be immobilized with a licensed custodian (AML reform). Ultimate Beneficial Owner (UBO) information must be filed and kept current with the Registro Público under Panama's FATF-aligned AML framework; Panama was removed from the FATF grey list in October 2023.