Setting up a company in Panama
Reviewed by Hassim Patel Bhana, Managing Partner · Updated
The most common vehicle is the sociedad anónima (S.A.): shares, at least three directors and three officers, and no paid-in capital required to incorporate. The alternative is the S.R.L., which uses quotas instead of shares and makes the partners' identities public. Incorporation takes two to three business days once your documents are in.
Key points
- The sociedad anónima (S.A.) is the most common vehicle: shares, at least 3 directors and 3 officers.
- No paid-in capital is required to incorporate an S.A.
- The S.R.L. is the alternative: quotas instead of shares, and the partners' identities are public.
- Incorporation takes 2 to 3 business days once the firm has your documents.
- If you will operate in Panama you then need a taxpayer number (RUC), an operating notice (Aviso de Operación) and municipal registration.
- Incorporating is not the same as being ready to trade — the registrations after it are what let you operate.
Frequently asked questions
S.A. or S.R.L.?
The S.A. is the most common: shares, three directors and three officers, no paid-in capital. The S.R.L. uses quotas and makes the partners' identities public, which decides it for a lot of people either way.
Do I need to put capital in?
No paid-in capital is required to incorporate an S.A.
What do I need after incorporation?
If you will operate in Panama: a taxpayer number (RUC), an operating notice (Aviso de Operación) and municipal registration.