Establish Your Company in Panama with Expert Guidance from IKKA
Why Choose Panama for Business?
Panama offers unmatched advantages for entrepreneurs and investors:
- 100% foreign ownership allowed in most sectors
- U.S. dollar as legal currency, with no restrictions
- Territorial tax system: foreign-sourced income is tax-exempt
- Strategic location linking North and South America with access to global trade routes
- Modern infrastructure supported by the Panama Canal
Starting with these benefits immediately captures attention and sets the context for company formation.
Company Types in Panama
Panama provides flexible corporate structures to match your goals:
- Sociedad Anónima (S.A.) – Most popular; strong asset protection, flexible shareholding, ideal for international and local operations.
- Sociedad de Responsabilidad Limitada (S.R.L.) – Equivalent to an LLC, often chosen by small and medium-sized businesses.
- Branches of Foreign Companies – Allows foreign companies to operate locally under their existing structure.
The Sociedad Anónima remains the most preferred for its versatility and tax advantages.
Legal Foundations: Resident Agent, Registered Office & Business Address
Every Panamanian company must have:
- Resident Agent – Licensed Panamanian attorney/law firm to ensure compliance and manage filings.
- Registered Office – Official legal address for the company in Panama.
Operating addresses can be:
- Residential (for small-scale businesses)
- Physical office (for professional local presence)
- Virtual office (cost-effective for international companies)
IKKA provides expert guidance on selecting and setting up compliant addresses.
Operating Licenses, Free Zones & Banking
- Aviso de Operación – Commercial license issued by the Ministry of Commerce and Industries, mandatory for local operations.
- Free Zones – Tax incentives, duty-free imports/exports, and strategic logistics, e.g., Colón Free Zone.
- Banking – Multi-currency accounts, secure international transactions, and tailored solutions for local and global operations.
IKKA assists with licenses, bank accounts, and all operational setups.
