A special purpose vehicle, or SPV, is an entity created for certain, well-defined purposes that can be temporary, and it can be done with the assistance of our specialists in company incorporation in Panama.
Table of Contents
SPV setup in Panama
A special purpose entity is created, as its name suggests, to fulfil a certain role, which is defined from the beginning and can be (but is not necessarily) a temporary one.
It is common for an SPV company to be a subsidiary created by a foreign company abroad. However, in Panama, investors have the option to open a SPV company structured as a corporation (sociedad anónima) or as a trust.
The choice depends on how the special purpose entity will be used and, in some cases, one form may be more suitable compared to the other.
Below, our team that can help you open a company in Panama lists the main steps required to set up a corporation that will be used as a special purpose vehicle:
- Decide the shareholding structure: the corporation used to open a SPV company in Panama must have two or more founders;
- Prepare the documents: the SA company is founded based on an Article of Incorporation, a document that describes the type, purpose, and particularities of the company. For those who set up an SPV company in Panama, the Articles will mention the special purpose;
- Decide on management issues: the directors have their powers stated in the Articles of Association. When setting up a special purpose vehicle, these powers can be limited or described in such a way that the management will be beneficial for the purpose of the vehicle;
- Register the SPV: company registration in Panama takes place with the Public Registry of Panama.
During the processes required to open a SPV company in Panama, it is common for the involved parent company to define a structuring method that would allow the highest degree of independence for the SPV. Our team of lawyerscan give you more details about SPV independence, solvency, and other matters upon request.
Special purpose vehicle uses in Panama
Securitization is one of the main uses planned by those who open an SPV company in Panama. Our team also lists other possible purposes below:
- Risk sharing, isolating risks;
- Asset transfer;
- Property sale.
While allowing for multiple uses and advantages offered by its setup in Panama, the SPV will have to observe the local reporting and taxation regulations, as it will be a locally registered legal entity.
In Panama, those who choose to set up a special purpose vehicle enjoy an easy incorporation process that can be assisted by our team, effectively reducing the need to be present in the country during all the incorporation phases.
Panamanian companies
As previously mentioned, to open an SPV company in Panama, investors can set up an SA corporation. The statistical data below, presented by our team, highlights the number of such companies incorporated recently in the country:
- As of May 2025, the total number of registered anonymous companies (SA) was 5,709;
- Most SA company registrations took place in May, with 1,251 such companies being registered during the fifth month of the year;
- Throughout the year, there have been 114 mergers of these types of companies;
- No SA companies were declared bankrupt during the first five months of 2025.
A special purpose vehicle can be a suitable tool for raising capital or isolating risks, depending on the purposes of its founding members.
If you want to know more about how to open a SPV company in Panama, our team can give you personalized information. Contact us for complete details on how to open a company in Panama.