---
titulo: "How to Form a Corporation (S.A.) in Panama: 2026 Guide"
titulo_seo: "Form a Panama Corporation (S.A.): Cost and Steps"
meta: "Law 32 of 1927 asks no minimum capital for a Panama S.A., only a resident agent and a US$300 annual franchise tax. Directors, shares and staying alive."
autor: "Diego Ospina Serna"
fecha: 2026-07-04
actualizado: 2026-07-04
materia: "Corporate Law"
idioma: "en"
resumen: "How to incorporate a Panama Corporation (Sociedad Anónima) under Law 32 of 1927: requirements, directors and officers, share capital, the resident agent, the annual franchise tax and ongoing compliance. The vehicle most used by foreigners to hold assets and do business in Panama."
tags: ["Companies in Panama", "Corporate Law", "Corporation", "Public Registry"]
orden: 20260704
faq:
  - q: "How do I form a corporation (S.A.) in Panama?"
    a: "You draft the articles of incorporation (pacto social) through a lawyer, notarize them and register them at the Public Registry. A Panama corporation requires at least two subscribers, three directors/officers and a resident agent, who must be a Panamanian lawyer or law firm."
  - q: "Is there a minimum capital to form a Panama corporation?"
    a: "No. Panama's Law 32 of 1927 sets no minimum paid-in capital; the customary authorized capital is US$10,000 divided into shares, with no obligation to pay it in at incorporation."
  - q: "Does a Panama corporation pay taxes on foreign income?"
    a: "No. Panama follows the territoriality principle: a corporation is taxed only on Panama-source income. Foreign-source income is not taxed locally, though the company must pay the annual franchise tax and keep a resident agent."
  - q: "How long does it take to incorporate in Panama?"
    a: "Once the deed is filed, registration at the Public Registry usually completes within a few business days."
---

The **Panama Corporation (Sociedad Anónima, S.A.)** is the most widely used vehicle in the country to run a business, act as a holding, or hold assets — real estate, accounts, vehicles, shares. Governed by **Law 32 of 1927**, it is flexible, well-recognized internationally and quick to incorporate. This guide explains how.

> **Note:** general information current as of the date; confirm your case with a lawyer.

## What you need to incorporate

- **Two or more subscribers** to sign the articles of incorporation (they need not be the ultimate shareholders and can be provided by the firm).
- **A board of at least three officers** — president, secretary and treasurer — who may be individuals or entities, of any nationality, resident anywhere.
- **A resident agent:** a Panamanian lawyer or law firm is required by law and signs the articles.
- **Share capital:** there is **no minimum**; the usual authorized capital is US$10,000, divided into shares (par value or no-par).
- The articles are executed as a public deed and **registered in the Public Registry**, which gives the corporation legal existence.

## What the corporation is used for

- **Operating a business** in Panama.
- **Holding company** for other companies or investments.
- **Holding assets** — property, bank and investment accounts, intellectual property.
- Combined with a **Private Interest Foundation** that owns its shares, for estate planning.

## Territorial tax and dollarized economy

Panama generally taxes only **Panama-source income**; income from foreign sources is typically not taxed here. The economy is **dollarized**, so there is no currency risk on the company's capital. This is a large part of why foreigners choose the Panama S.A.

## Ongoing compliance: keeping it alive

Incorporating is only the start. To keep your corporation in good standing you must maintain:

- The **annual franchise tax** (tasa única) of **US$300**.
- The **resident agent**.
- **Accounting records** and supporting documentation.
- The **ultimate beneficial owner** reported through the resident agent to the authorities.
- **Bearer shares**, if any, held under the custody regime (immobilized).

Let a corporation lapse on these and it can fall into arrears or even be struck off — a costly mistake we help clients avoid.

> Related: [Panama company types compared](/guias/panama-company-types-compared-corporation-llc-foundation-2026/) · [Private Interest Foundation](/guias/panama-private-interest-foundation-asset-protection/).

*Legal basis: Law 32 of 1927 on Corporations. Informational content, not legal or tax advice.*

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**Relacionado:** [[starting-a-business-in-panama-legal-guide|Starting a business in Panama]]