Cost of Opening a Company in Panama
Regional financial & logistics hub · 2–3 weeks · RUC · Local director required
Est. Formation Cost
$1,000–$1,700 (One-time formation costs only)
Cost of Opening a Company in Panama
Panama is a well-established jurisdiction for holding structures and regional headquarters, with a straightforward incorporation process and a territorial tax system (0% on foreign-source income). A mandatory licensed Panamanian resident agent is the primary recurring cost. All costs below are third-party fees, separate from NavviPal's service fees.
Estimated Cost Breakdown
| Component | Description | Estimated Range | Notes |
|---|---|---|---|
| Government Formation Fee | The government charges a formation fee at incorporation. For an LLC (Sociedad de Responsabilidad Limitada) this is $250; for an S.A. (Sociedad Anónima) it is $500. | $250 USD (LLC) or $500 USD (S.A.) | One-time. Paid to the Public Registry of Panama. |
| Notary & Public Registry (Pacto Social) | A Panamanian notary executes the Pacto Social (articles of incorporation), which is then filed at the Public Registry. This cost is typically bundled into the legal service package. | Typically bundled with professional fees (see below) | One-time. Often included in the total formation package quoted by Panamanian law firms. |
| RUC Registration (DGI) | Tax registration with the Dirección General de Ingresos (DGI) to obtain the RUC (Registro Único de Contribuyentes). Panama operates a territorial tax system. | $0 government fee | One-time. Process cost only. |
| Licensed Panamanian Resident Agent (Annual, Mandatory) | All Panamanian entities are legally required to maintain a licensed resident agent (a Panamanian attorney or law firm) on record at all times. | ~$300 USD per year (market rate) | Annual, recurring. This is the most significant ongoing compliance cost for a Panama entity. |
| Annual Franchise Tax (Tasa Única) | All Panamanian entities pay an annual franchise tax (tasa única) to maintain their registration in good standing. | $300 USD per year | Annual, recurring. Due by July 15 each year. |
| Apostille & Sworn Translation of Foreign Documents | Foreign shareholder and director documents must be apostilled. Panama has a large international legal infrastructure so sworn translation requirements vary by document origin. | Apostille costs vary by issuing jurisdiction and document origin. | One-time. Scales with number of foreign shareholders and directors. |
| Professional / Legal Formation Package | Market-rate formation services from a Panamanian law firm covering Pacto Social drafting, notarization, Public Registry filing, and RUC registration. | $400–$900 USD | One-time. Market rate; bundled packages are common. |
Est. Formation Cost
$1,000–$1,700 USD
$1,000–$1,700 USD in total first-year costs (formation fee, legal package, RUC, resident agent, and annual franchise tax). Apostille and translation are additional one-time costs.
Panama is a fully dollarized economy — all government fees and costs are in USD. No FX risk.
What Affects the Cost
Several variables can push your total formation cost toward the lower or upper end of these ranges:
Entity type — An S.A. has a higher government formation fee ($500) than an LLC ($250); the S.A. is more common for international structures.
Authorized capital — The capital registration tax is based on authorized capital; higher capital increases this cost.
Number of directors — Panama requires 3 directors for an S.A. If nominee directors are used, this adds to cost.
These are estimated third-party costs and do not include NavviPal's service fees. Resident agent and franchise tax fees are ongoing annual obligations. Figures are for reference only and subject to change.
Get an Exact Quote for Your Panama Entity
These are estimated third-party costs. NavviPal can give you a precise, itemized quote for your specific structure, shareholder composition, and timeline.