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Find the Perfect Legal Form
for Your Panama Business

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.

Panama Company Finder

Section 1: Business Overview

1. What is the primary nature of your business?

2. What is the expected size of your business?

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.

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