Panama Company Tool: Find the Best Legal Form

Choosing the right legal structure for your business in Panama can be overwhelming, especially with so many options available. To simplify this process, we’ve created a user-friendly Question and Answer tool designed to guide you through the most important considerations.

By answering a few key questions, you’ll get a clearer idea of the best legal forms—whether it’s a Panama corporation (S.A.), a Panama foundation, or other common structures—that align with your unique needs as a foreign investor.

This tool is not only practical for narrowing down your options but also helps you prepare for the types of questions your lawyer will ask to tailor their recommendations to your specific business goals. Get started today and take the first step toward establishing the ideal business structure in Panama!

Please answer the following questions to get a recommendation on the best entity type for your business needs in Panama. Each section contains questions that will help us understand your requirements better.

Guide: Panama S.A.

Comparison of Key Features: IBC Corporations vs. LLC Companies vs. Private Interest Foundations

Feature	IBC Corporations	LLC Companies	Private Interest Foundations
Legal Personality	Separate legal entity	Separate legal entity	Separate legal entity
Minimum Shareholders/Founders	1 Shareholder	2 Members	1 Founder
Liability	Limited to share capital	Limited to contributions	No liability for beneficiaries
Taxation	Exempt from local taxes on foreign income	Exempt from local taxes on foreign income	Exempt from local taxes on foreign income
Corporate Management	Board of Directors	Managed by members/managers	Council or Foundation Board
Privacy	High	High	Very High
Regulatory Requirements	Annual return required	Annual return required	Annual return required
Transferability of Shares/Interests	Freely transferable	Freely transferable	Transferable with restrictions
Business Operations	Active business operations	Active or passive operations	Primarily passive activities
Minimum Capital Requirements	Varies by jurisdiction	No minimum	Typically none
Reporting Requirements	Annual financial statements	Annual financial statements	Annual report on activities
Establishment Costs	Moderate to high	Low to moderate	Low to moderate
Foreign Ownership	Allowed	Allowed	Allowed
Investment Restrictions	None	None	Limited to specific purposes

Disclaimer:

This tool is intended for general informational purposes only and does not constitute legal or tax advice. The recommendations provided are based on the information you enter and common solutions. They may not be the best fit for your specific needs. Laws and regulations in Panama, as well as internationally, can be complex and subject to change.

We strongly recommend consulting with a qualified lawyer or tax advisor before establishing a business or taking any legal actions to obtain detailed and tailored advice. We do not accept any liability for decisions made based on the information provided by this tool.

The use of this tool does not establish an attorney-client relationship between you and us. For comprehensive legal or tax advice, please consult directly with a professional.

Streamlining Your Corporate Formation in Panama

Upon our consultation, you’ll gain:

Comprehensive insights into Panama’s corporate formation options
Tailored strategies aligning with your relocation and investment objectives
Assurance in making informed and advantageous corporate decisions

Let´s talk to get you started!