How to create a company in Panama in 2025

Panama continues to position itself in 2025 as one of the most friendly countries in Latin America for business development and foreign investment. Its legal system, based on the Commercial law, together with its privileged geographical location and free market policies, make it an attractive environment for both locals and foreigners.

One of the main reasons for Create a company in Panama is their efficient fiscal structure. The country applies a territorial principle with regard to taxation: that is, it is only taxed on income generated within Panamanian territory. This represents a great advantage for international businesses that operate from Panama but bill abroad.

Some of the most notable benefits include:

• Fast Constitution Process: You can have a legally registered company in just a few days.
• Flexible joint-stock companies: They clearly separate personal assets from corporate assets, protecting your assets.
• Robust multibank: Panama has an international banking system with more than 60 banks.
• Facility for foreigners: You can register a company as a foreigner, without requiring permanent residence.
• Free exchange rate and use of the dollar: The U.S. dollar is the official currency, providing monetary stability.

Another important factor in 2025 is the strengthening of accessible digital platforms for managing legal and commercial procedures. El Public Registry of Panama and the DGI (Directorate General for Revenue) portal allow part of the processes to be carried out online, reducing operating costs and waiting times.

In addition, there are preferential regimes for certain industries, such as companies in technological, financial and logistics sectors. For example, companies that are established in areas such as Panama Pacifico or the City of Knowledge enjoy fiscal, migratory and labor incentives.

In short, opening a company in Panama in 2025 offers a favorable legal environment, competitive tax benefits and access to an economy connected to the continent's main markets. All of this makes the country an increasingly attractive destination for global entrepreneurs.

The first essential step for Create a legal company in Panama It is to constitute a Limited Company (S.A.). This type of legal structure is the most common in the country due to its flexibility in operations, asset protection and acceptance by banking institutions. Both nationals and foreigners can do this registration legally.

What is a limited company in Panama?

The Panamanian public limited company is a legal entity regulated by the commercial law in Panama. It allows the participation of one or more shareholders, whose data can be kept anonymous (this does not mean that they are secret to tax authorities). Unlike other forms of ownership, owners are not responsible with their personal assets for the company's debts.

Requirements for setting up a public limited company

To start the process, you need to gather some basic documents. Here's a summary of The legal requirements to create a Panamanian company under this modality:

• Company name (must be available in the Panama Public Registry).
• Data from at least 3 directors (they can be Panamanian or foreign).
• A person authorized to act as a resident agent (Panamanian lawyer).
• Authorized capital (it is not mandatory to provide the amount immediately, it is usually expressed in USD 10,000).
• Drafting and signing of the statutes or Social Pact.

This agreement must be submitted to a notary public and then registered with the Public Registry of Panama, where the company's existence is legally formalized.

How much does it cost to set up a company in Panama?

The cost may vary depending on the legal service you hire, but generally speaking the expenses for Commercial register, fees and professional fees may be between USD 1,200 to USD 2,000. This cost includes the registration of the company and the issuance of the first share certificate.

How long does the process take?

With the correct documentation, it is possible to have your company legally incorporated within 3 to 5 business days. If you need speed, some law firms offer expedited processes.

Can I register a company as a foreigner in Panama?

Yes, you don't need to be a permanent resident to Register a company as a foreigner in Panama. Even the directors and shareholders can all be non-Panamanian. The important thing is to have a local attorney who acts as a legal resident agent.

This step is the basis of the entire process. Once your company is registered in the Public Registry, you can proceed to manage other procedures such as the tax address, the Notice of Operations And the Single Taxpayer Registry (RUC Panama). We'll cover all of this in the next few steps of this guide.

Once the public limited company is incorporated in Panama, the next step for Create a legal company in Panama It is to establish a Fiscal and Legal Address. This requirement applies to both local companies and foreign investors, and is essential to comply with administrative obligations before entities such as the Directorate General of Revenue (DGI) and the Municipality.

What is a tax address and why is it mandatory?

El Tax Address is the official address registered with the Panamanian tax authorities where your company receives tax notifications and official documentation. It is, in essence, the administrative “home” of your company from a tax and legal point of view.

In addition to facilitating identification before the tax system, it is a prerequisite for being able to apply for Notice of Operations And register in the RUC (Single Taxpayer Registry).

What options are there for legal domicile?

Your company can choose between the following legal address schemes:

• Own physical office: If you have a commercial space or office, this can serve as a tax address.
• Shared spaces or coworking: Many entrepreneurs choose shared spaces, especially when starting operations. In these cases, it is vital that the space has a valid legal address accepted by the DGI.
• Address of the resident agent or attorney: In some cases, the resident agent (usually a law firm) may offer their address as a legal address, although this is usually temporary or for companies that are not yet operating.

It is recommended that the selected address be consistent with all official records, from the Public Record to the municipality, since discrepancies can lead to delays or costly corrections in the process.

Practical tips for choosing the right home

When selecting your tax and legal address, consider:

1. That it is located in an area legally authorized for the type of economic activity that your business will carry out.

2. That you have access to the space in case of municipal inspections or operations.

3. That you can provide proof of address, such as a rental agreement, utility bill, or letter from the landlord.

Important: The legal address is not an independent procedure, but rather a data that you must submit in multiple documents — from the request for the Notice of Operations to the registration with MUPA (Municipality of Panama).

Once this essential point has been defined, you are ready to move on to the next step: obtaining the basic business permits that will allow you to operate legally in the country.

With your incorporated limited company and your confirmed tax address, the next step for Open a company in Panama is to obtain two fundamental records to operate legally: the Notice of Operations And the Single Taxpayer Registry (RUC).

What is the Notice of Operations?

El Notice of Operations is a permit issued by the Ministry of Commerce and Industries (MICI) that formally authorizes a company to operate in Panamanian territory. This document is required for the vast majority of commercial, professional and industrial activities.

To request it, your company must log in to the platform Panama Emprende, where you will fill out a form stating:

• Company name and registration number in the Public Registry of Panama
• Main economic activity (according to pre-established categories)
• Exact tax address
• Information from the legal representative

Once the form has been submitted and the corresponding fee has been paid, the system issues an immediate receipt, and your company can now start its permitted activities under the license obtained.

What is the Single Taxpayer Registry (RUC)?

El RUC Panama is a unique number assigned by the Directorate General of Revenue (DGI) at the time of registering any taxpayer entity, whether company or natural person. This number serves as your tax identification with the State for declaratory, tax and administrative purposes.

After obtaining the Notice of Operations, you must register with the DGI to obtain this number. The RUC will be required to issue invoices, declare taxes, file financial statements and sign formal contracts.

General requirements for requesting both documents

The documents usually requested include:

• Public Registry Certificate
• Copy of the ID card or passport of the legal representative
• Lease agreement or proof of legal address
• Complete online form (for Panama Emprender and DGI)

Both procedures are independent, but they are interrelated. Without trading notice you can't get the RUC, and without RUC you can't meet your tax obligations.

How much does it cost?

The costs are affordable in most cases. The Trading Notice has a variable rate depending on the type of activity, but it is usually located between US$55 and US$100. RUC registration, on the other hand, is free but mandatory.

This step is critical for any entrepreneur, as it opens the door to legally invoicing, hiring employees and participating in tenders or contracts. Once you complete it, you'll be in the final stretch to finish the commercial register of your company and register with the Municipality of Panama (MUPA), which we will explore in the next step.

Once you have the Notice of Operations and your company is formally registered with the Directorate General of Revenue (DGI) with your Single Taxpayer Registry (RUC Panama), the final step in the process of Create a company in Panama It is the inscription before the Municipality of Panama (MUPA). This step is critical to legally operating within the capital district and complying with local tax and business requirements.

What is the MUPA and why is it mandatory to enroll?

The Municipality of Panama is the local authority responsible for regulating commercial activity within its jurisdiction. All businesses, whether physical stores, offices or virtual businesses with operations in the district, must be registered with the MUPA. This registration allows the company to:

• Get the Municipal Peace and Security mandatory.
• Pay the appropriate municipal taxes.
• Comply with local economic activity regulations.

Requirements to enroll a company in the MUPA

As with the previous steps, the documentation necessary to register your company in the Municipality of Panama is key to moving forward without setbacks. Here are the basics:

Common documents required:

• Copy of the RUC of the company issued by the DGI.
• Copy of the Notice of Operations.
• Copies of the ID or passport of the legal representative.
• Constancy of Business address (rental agreement or letter of ownership).
• Duly completed Municipality registration form.
• Payment of the Municipal tax initial (varies depending on the type of activity).

All of these documents must be physically submitted to municipal offices or, in some cases, through their electronic platforms if available. Once the application is accepted, a municipal taxpayer number will be assigned.

What does it mean to be “up to date” with the Municipality?

Being registered with the MUPA is not a single procedure. It requires each company to keep its municipal payments up to date and declare business activity as required. This strengthens the image of your company and avoids sanctions for non-compliance.

For foreign entrepreneurs seeking to clarify the Legal requirements to open a Panamanian company, this last step is often overlooked, but it's essential. It applies to both large investments and small businesses.

Final Steps You Shouldn't Forget

With registration with the Municipality, your company is legally ready to operate. However, there are certain details that we recommend attending to from the start to ensure ongoing compliance:

• Keep all legal and fiscal documentation organized (company documents, registrations, licenses).
• Hire an accountant or tax advisor to ensure monthly or annual tax compliance.
• Explore additional licenses depending on the type of activity (for example, health permits for premises with public service).

With all this, you have completed the Steps to open a business in Panama in 2025. From the Constitution of the Public Limited Company Until the Municipal registration, you will have complied with the fundamental procedures of the commercial law in Panama.