Company Formation – Panamá

How to Establish an NGO in Panama: Definitive Guide 2025

Everything you need to know step by step

3D render of a heart icon and NGO folder on a desk, representing the process of establishing a nonprofit in Panama.

Setting up a Non-Governmental Organization (NGO) in Panama may seem like an arduous process, but with the right guidance, it can be done in a clear and effective manner. NGOs play a vital role, not only in addressing social, environmental and educational issues, but also as entities eligible to receive tax-deductible donations. In this article, created by Limitless Legal, we explain step by step how to found your NGO in Panama, complying with all legal and administrative requirements. Whether you're starting your first non-profit association or looking to update your knowledge of local regulations, this definitive guide will be an invaluable resource.

What is an NGO and why register it in Panama?

Before talking about the process, it's important to understand what an NGO is. An NGO, or non-profit association, is intended to promote charitable objectives in areas such as education, health, environment or community development. In Panama, NGOs must legally register to obtain legal personality and be recognized as entities eligible to receive tax-deductible donations. This legal framework provides transparency and trust to collaborators and sponsors.

By registering your NGO in Panama, you can also access the tax benefits offered by the government, including tax exemptions. Below, we explain each step necessary to register your organization efficiently.

Step 1: Define the objectives and create the statutes of your NGO

The first step is to define the specific goals that your NGO will pursue. Objectives must be clear, measurable and focused on a positive impact. Write the statutes of your NGO, a key document that will establish its legal and organizational framework. These should include:

  • Name of the organization
  • Purposes and objectives of the NGO
  • Structure of the board of directors
  • Operating Procedures
  • Duration of the organization (can be indefinite)

Work with an attorney who specializes in corporate law to ensure that the statutes comply with the laws of Panama and the regulations of the Ministry of Government and Justice.

Step 2: Obtain legal status before the Ministry of Government and Justice

With the statutes ready, the next step is to request the legal status of your NGO. This process is carried out directly before the Ministry of Government and Justice. You'll need to provide:

  • The previously drafted statutes
  • Minutes of the Board of Directors
  • List of founding members
  • Managers' identity documents

Once the file is submitted, the Ministry will review your request. If everything is in order, a resolution will be issued approving the creation of the NGO.

Step 3: Register your NGO in the Public Registry and before a Notary

It is mandatory to register the NGO legally in the Public Registry of Panama. In addition, the resolution issued by the Ministry must be authenticated before a notary public. This process gives legal validity to the statutes and the operation of your NGO in the country.

Remember that this step is essential to formalize capabilities such as opening bank accounts, signing contracts and receiving donations.

Step 4: Get your RUC and register with the MEF to receive donations

To formally operate and receive tax-deductible donations, your NGO must register with the Ministry of Economy and Finance (MEF). This will include:

  • Public Registry Certification
  • MEF specific forms
  • Additional documents as requested by authorities

In addition, get the Single Taxpayer Registry (RUC) to comply with tax regulations. Your NGO will be able to issue valid receipts for tax deductions that benefit donors.

✍🏼 Take note...

Creating an NGO in Panama may seem complex, but following these key steps will help you ensure that you comply with local laws and can benefit your community with a significant impact. From drafting statutes to obtaining the RUC and legal personality, each stage requires attention to detail.

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