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Choosing the right legal structure for your business in Panama can be overwhelming, especially with so many options available. We want to simplify this process. That’s why we’ve created a user-friendly Question and Answer tool. It is 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 practical for narrowing down your options. It also helps you prepare for the types of questions your lawyer will ask. These questions will help 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.
Private Investment vs. Corporation (SA) vs. Private Foundation
| Feature | Private Investment | Corporation (SA) | Private Foundation |
|---|---|---|---|
| Legal Personality | No separate legal entity | Separate legal entity | Separate legal entity |
| Minimum Owners/Founders | 1 Owner | 1 Shareholder | 1 Founder |
| Liability | Unlimited liability | Limited to share capital | No liability for beneficiaries |
| Taxation | Subject to personal taxes | Exempt from local taxes on foreign income | Exempt from local taxes on foreign income |
| Management | Managed by the individual | Board of Directors | Council or Foundation Board |
| Privacy | Low | High | Very High |
| Regulatory Requirements | None | Annual return required | Annual return required |
| Transferability | N/A | Freely transferable | Transferable with restrictions |
| Business Operations | Personal use only | Active business operations | Primarily passive activities |
| Minimum Capital | None | Varies by jurisdiction | Typically none |
| Reporting Requirements | None | Annual financial statements | Annual report on activities |
| Establishment Costs | None | Moderate to high | Low to moderate |
| Foreign Ownership | Allowed | Allowed | Allowed |
| Investment Restrictions | None | None | Limited to specific purposes |
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
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. Seek a tax advisor before establishing a business or taking any legal actions. This way, you can 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.