Our website uses  cookies for statistical purposes.

Our Articles

Open a Holding Company in Panama

Open a Holding Company in Panama

A Panama holding company can be subdivided into two levels; parent company and independent subsidiary. The parent company is referred to as the holding company while the independent subsidiary is the one that is connected with the holding company. You can get the advantages of simple shareholder registration, easy incorporation process, low costs of tax, labor and renewal fee by opening a Panama holding company. Being a parent entity, the holding company can oversee the procedures, policies and management decisions of the company under its control. But a holding company does not participate in the day-to-day activities of a company even if it wholly owns a subsidiary. Holding companies and their subsidiaries can be in the form of a (Limited Liability Company) LLC, limited partnerships, or corporations. 

You can save your time by forming a Panama holding company with the assistance of an expert. Our Panama incorporation specialists can help you establish a company. 

Necessary documentation for the holding company

To establish a Panama holding company, you need to provide the following:

  • – At least three preferred options for the name of your company. The names must be listed in order of priority. Our Panama company formation experts will confirm with the local authorities which name is available to use;
  • – Shareholders do not need to be registered in the Public registry. If you want the shareholder’s certificate to be issued, you must provide his name, address and other related information;
  • – Planned activity and company purpose;
  • – A properly planned operational period of the company (indefinite or set deadline);
  • – There is no minimum share capital of the company but usually, US$10,000 of initial share capital is suggested;
  • – Details of the number of shares owned by each shareholder of the company;
  • – The Panama legislation requires a company to have a minimum of three directors to occupy the three positions of the dignitaries. So, the name and address of the dignitaries and directors are also required;

Get in touch with our Panama incorporation experts to clear any ambiguity related to the documentation necessary for a holding company.

Registration process for a holding company in Panama

While registering a Panama holding company, the applicant does not need a power of attorney, even the registration process can be done without the presence of the applicant in Panama. By relying on our company formation consultants, your Panama holding company can be registered and formally established before you arrive in the country.

You need to get the legal assistance of a consultant for drafting the bylaws of the Panama holding company and notarize them through a Public Notary. Register the company bylaws in the public registry of Panama and register your company at the National Tax Authority. After registration, you will get your national tax identification. Open your corporate bank account, the Panamanian financial system has become stricter, so our Panama offshore company formation experts can help you pass through this procedure without any difficulty. 

Benefits of establishing a holding company in Panama

If you are planning to set up a holding company in Panama, these are the basic benefits you can get:

  1. Any profits collected from Panama offshore company holding are free from any tax liabilities. 
  2. Special taxation conditions are applicable if the holding company maintains its headquarters in Panama;
  3. Any profits transferred to the subsidiary from the offshore holding company will not be considered as taxable income;
  4. Holding company in Panama permits the transformation of direct equity investments into indirect equity investments.

In Latin America, Panama is a region that offers a relatively less complicated procedure for setting up a holding company. You can rely on the services of our Panama offshore company formation consultants for more information regarding the advantages of Panama holding company

Corporate taxes in Panama

Panama is considered a tax heaven. Here is the general information of corporate tax regulations in Panama:

  • – Panama does not implement any corporate, estate, capital gains, income taxes on the offshore entities that are only engaged in business outside of the jurisdiction. Offshore companies can also engage in local taxation but then the local taxes will be implemented on them;
  • – Corporate Income tax is a tax collected from the companies that varies on the net income companies obtain while exercising their business activities in 1 business year;
  • – In 2021, the corporate tax rate in Panama is 25 percent;

You can contact our Panama company formation experts for details about our services. Our consultants can support you in setting up a Panama offshore company