Legal entity types in Panama compared
We have expertise in helping entrepreneurs like yourself navigate the complexities of Panama’s business regulations. Our range of services will help you select the best structure for your business and ensure compliance with all laws. Let’s examine the different business options and discuss how we can assist you in establishing your business in this thriving North American country.
Legal entities in Panama
Below is a summary of the most commonly used legal structures in Panama:
| Entity | Local name | Min. share capital | Management | Incorporation time (approx.) |
|---|---|---|---|---|
| Limited Liability Company | Sociedad de Responsabilidad Limitada | $ 0 | Directors | 10 days |
| Corporation | Sociedad Anónima | $ 0.01 | Board of directors | 14 days |
| Branch Office | – | – | Branch manager | 15 days |
| Holding Company | – | – | Board of directors | 10 days |
Limited Liability Company (Sociedad de Responsabilidad Limitada)
The Limited Liability Company is a common option for businesses in Panama, providing its owners with protection against personal liability. Its adaptable structure and simple formation make it a convenient choice for entrepreneurs. Our aim is to assist you in establishing your Limited Liability Company in Panama.
Corporation (Sociedad Anónima)
Many times, larger companies in Panama opt for the Corporation. This entity provides substantial benefits due to its capacity to gather funds through public offerings and ease of transferring shares. Our team is available to help you with the registration of your Corporation in Panama.
Branch Office
A branch office acts as a continuation of the main company, enabling it to operate in a different area without changing its legal identity. Setting up a branch office in Panama can be beneficial for companies wanting to grow their business in the country without forming a new legal entity. By functioning as a branch, the parent company can utilize its current brand reputation and resources while entering new markets. We provide full assistance in navigating the complexities of establishing and running a branch office in Panama, guaranteeing a seamless and compliant entry into the market.
Holding Company
In Panama, setting up a holding company can provide numerous advantages, including centralized management, risk diversification, and tax benefits. By organizing your business as a holding company, you can effectively oversee multiple subsidiaries, simplify decision-making, and enhance tax planning. Our specialized team offers personalized support to assist you in forming and running a holding company in Panama, guaranteeing adherence to regulations and maximizing your corporate structure’s effectiveness.
Requirements for starting the business
Let’s examine the necessary conditions for initiating any form of business entity in Panama and the assistance provided by our committed team throughout the entire process
Minimum share capital
Panama enforces minimum share capital requirements based on the selected business structure. Our experts will help you calculate the required minimum share capital for your business regardless of the corporate type. We collaborate closely with you to ensure adherence to regulations and maximize your financial resources.
Directors and shareholders
In Panama, it is mandatory for every business to have directors and shareholders. Our team of experts can provide valuable guidance in selecting appropriate directors who align with your company’s goals and bring valuable experience to the table.
Legal duties and obedience
It is important to stay updated on obligations such as registration, ongoing reporting, and tax requirements. Our legal team handles the administrative tasks to ensure the business remains fully compliant, allowing you to concentrate on core operations without having to worry about paperwork.
Book a consultation
The team is dedicated to understanding your goals, industry, and challenges in order to offer personalized assistance during the process of forming your business. We promise a smooth and trouble-free path to creating a successful company in Panama through our expertise and commitment to excellent service. Don’t let the challenges of starting a company in Panama hold you back from success. Trust us to help your business reach its full potential. Start your journey to success by reaching out to us today. Simply fill out and submit the inquiry form provided below, and our experts will contact you soon.