IT Ecosystem in Panama (Why It Matters for SaaS/FinTech)
Panama's role as a logistics and services hub increasingly includes tech. Global players operate regional centers from Panama Pacifico and under the SEM/EMMA regimes; for example, Dell runs a major regional operation and has publicly highlighted Panama's contribution to digital transformation in the region. The Panama Pacifico platform reports hundreds of multinationals across technology, manufacturing and logistics active on site. For SaaS, AI and payment processing businesses in Panama, this translates into accessible talent, bilingual service operations and enterprise clients within a few kilometers of Tocumen and the Canal corridor. Use this proximity to structure support, compliance and billing, while keeping non-Panamanian revenue outside the local tax net.
Why Register a Company in Panama?
Strategic location & trade access. With the Canal and dense air/sea links, doing business in Panama gives straightforward reach into North and South America. That matters for customer support centers, payment operations and regional licensing footprints.
0% tax on foreign-sourced income. Panama applies a territorial tax system: income earned outside Panama is generally not subject to corporate income tax, making a Panama offshore company attractive for cross-border services. Local-source income is taxed at standard rates, but foreign-source revenue remains outside the scope.
Confidentiality with regulatory compliance. Panama operates a private beneficial-owner registry accessible to competent authorities (not public), balancing privacy with AML standards—useful for investors prioritizing asset protection alongside compliance.
Simple, fast incorporation. The Panama company registry processes standard S.A./SRL setups quickly via a resident agent, if all documents are in place; name clearance and filings at the Public Registry are predictable when documents are prepared correctly.
Types of Companies in Panama
International Business Company (IBC)
In practice, IBC is the S.A. used internationally, which is the default for company formation in Panama, focused on foreign-source income. Limited liability, flexible governance and no local corporate tax on non-Panamanian income make it the workhorse for global service models.
Panama Company Formation Requirements
S.A./IBC boards require three directors (commonly implemented as three distinct persons); shareholders can be individuals or entities and may be foreign. A single shareholder model is feasible after incorporation; governance can be streamlined while observing registry formalities.
Reserve a unique name at the Panama corporate registry and add a suffix that matches the form (e.g., "S.A.", "Inc.", "Corp."; for S.R.L., "S. de R.L."). This avoids rejections and accelerates Panama company registration.
No statutory minimum paid-up capital in most cases. Draft share structure to match investor economics and banking/KYC expectations.
Expect standard KYC (passports, proof of address, source of funds) and the appointment of a resident agent. All entities must maintain accounting records and provide their location/contact to the resident agent under Law 52/2016, as amended by Law 254/2021.
Step-by-Step Panama Company Registration Process
Choose Structure & Clear the Name
Select IBC/S.A., S.R.L. or foundation and clear the name with the Panama business registry.
Draft & Notarize Incorporation Documents
Prepare Articles, director/administrator appointments and compliance statements; notarize locally per registry practice.
File with the Public Registry of Panama
Submit via resident agent. On registration, your entity is live and appears in the Panama company registry.
Obtain RUC (Tax ID)
Even if revenue is foreign-source, obtain a tax number for invoicing, contracts and procedural interactions.
License, If Doing Local Business
If your activity is local, obtain a Licencia de Funcionamiento; purely offshore service models usually do not require it.
Open a Corporate Bank Account
We coordinate documentation and compliance for account opening. Per our policy, we assist with EU-based FinTech banks/EMIs (not national/state banks); for Panamanian banks, we prepare the file and introductions via local agents—client presence may be required. (See our blog anchors: bank account, tax advantages, VAT/VIES for cross-border billing.)
Taxation & Reporting in Panama
Territorial Tax System Explained
Corporate income tax at 25% applies to Panamanian-source income; foreign-source income is generally out of scope. For larger taxpayers, an alternate minimum (CAIR) calculation may be applied.
Indirect Tax (ITBMS "VAT")
The local VAT equivalent (ITBMS) is 7% on most goods/services; exports and many international services fall outside the scope, which helps offshore models price competitively.
Annual Records & Compliance
All companies must keep accounting records (five-year look-back) and share record location and contact with the resident agent annually; deadlines are set by regulation and circulars. Non-compliance triggers penalties and potential suspension.
Taxation and Reporting in Panama
Panama beckons international business with its unparalleled territorial tax system. Imagine this: a stunning 0% tax on income generated entirely outside the country! This transforms your Panama offshore company into a magnet for global operations, ensuring your profits stay firmly in YOUR pocket. A 25% corporate tax only applies to locally sourced income, and dividends paid to foreign shareholders face no tax at all. This framework positions doing business in Panama not just as a choice, but as a strategic masterstroke for international investors.
What's more, you'll be pleasantly surprised: there's just a minimal annual franchise fee of 300 USD for corporations, keeping your Panama company registration in tip-top, tax-efficient shape. Yes, VAT rate stands at 7%, but most international transactions and exports are exempt, and capital gains tax is a mere 10%. Local municipal taxes apply to domestic companies, but overall, Panama's tax burden remains incredibly competitive, making company formation a truly smart move!
Despite all the tax advantages, Panama insists on a responsible and transparent approach to reporting. All companies, including offshore entities, are required to maintain accounting records and provide annual copies to their registered agent for the Panama company registry. These IFRS-compliant records can be kept outside Panama, but their accessibility is mandatory, guaranteeing transparency and adherence to international standards. Non-compliance can lead to substantial penalties, so remember: it’s better to comply than to pay!
Costs & Government Fees (Indicative)
Name of the service
Start
Lite
Business🔥
Pro
Company registration, including state duty
✅
✅
✅
✅
Initial AML Compliance and KYC
✅
✅
✅
✅
Share certificate
✅
✅
✅
✅
Legal Address & Resident Agent
(1 year)
❌
✅
✅
✅
Company secretary for 1 year
❌
✅
✅
✅
Three Nominee Directors
❌
❌
✅
✅
Assistance with Opening a Corporate Bank Account
❌
❌
❌
✅
Premium Address for Proof of Address
(1 year)
❌
❌
❌
✅
Nominee Shareholder (1 year)
❌
❌
❌
✅
Shareholders’ Agreement
❌
❌
❌
✅
Total cost
2400 US
$1800
2600 US
$2000
4000 US
$3000
8500 US
$6500
*The offer is valid until 2026-01-31
Taxation and Reporting in Panama
Panama beckons international business with its unparalleled territorial tax system. Imagine this: a stunning 0% tax on income generated entirely outside the country! This transforms your Panama offshore company into a magnet for global operations, ensuring your profits stay firmly in YOUR pocket. A 25% corporate tax only applies to locally sourced income, and dividends paid to foreign shareholders face no tax at all. This framework positions doing business in Panama not just as a choice, but as a strategic masterstroke for international investors.
What's more, you'll be pleasantly surprised: there's just a minimal annual franchise fee of 300 USD for corporations, keeping your Panama company registration in tip-top, tax-efficient shape. Yes, VAT rate stands at 7%, but most international transactions and exports are exempt, and capital gains tax is a mere 10%. Local municipal taxes apply to domestic companies, but overall, Panama's tax burden remains incredibly competitive, making company formation a truly smart move!
Despite all the tax advantages, Panama insists on a responsible and transparent approach to reporting. All companies, including offshore entities, are required to maintain accounting records and provide annual copies to their registered agent for the Panama company registry. These IFRS-compliant records can be kept outside Panama, but their accessibility is mandatory, guaranteeing transparency and adherence to international standards. Non-compliance can lead to substantial penalties, so remember: it’s better to comply than to pay!
Panama Foundation
Name of the service
Business🔥
Pro
Fund Registration, Including State Duty
✅
✅
Corporate Set of Incorporation Documents
✅
✅
Initial AML Compliance and KYC
✅
✅
Legal Address & Resident Agent (1 year)
✅
✅
Nominee Director
✅
✅
Nominee Protector
❌
✅
Total cost
6000 US
$4500
26000 US
$20000
*The offer is valid until 2026-01-31
Who Should Consider Panama?
Foreign Entrepreneurs & Investors
Starting a business in Panama as a foreigner is routine: 100% foreign ownership is allowed, which suits holding, licensing and service entities targeting non-Panamanian markets.
Digital Nomads & Remote Operators
SaaS, consulting, design and AI labs can bill foreign clients through a Panama offshore company while maintaining lean local overheads.
Asset Protection & Estate Planning
Foundations holding operating shares (or IP) segregate risk and facilitate succession for families and funds.
Start Your Panama Business with Icon.Partners
Personalized Legal & Tax Advisory
We align structure with the territorial system to ensure tax efficiency and transparent reporting across jurisdictions (OECD/FATF-aware)
End-to-End Coordination (No PoA)
Our lawyers coordinate filings with the resident agent and ensure documents meet local legal standards—we do not act under Power of Attorney.
Fast, Remote-First Incorporation
From name clearance to RUC, we keep doing business in Panama simple; for banking, we connect you with compliant EU EMIs and prepare local bank files where relevant.
5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
5.0
"They have a modern and technological approach to doing business."
The client is satisfied with Icon.Partners' work, whose documentation is a vital part of their success. The client resolves legal and financial issues with the help of the team. Their excellent communication skills, timely delivery, modern approach, and diverse expertise make them a great partner.
Anton Tkachov
CEO of Gotoinc LTD
Cyprus📍
Jan 18, 2024
Reviews
5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
Reviews