To open a holding company in Panama, investors follow the company registration steps. Our team specializing in company incorporation in Panama can fully assist you during its creation.
| Quick Facts | |
|---|---|
| Legal entities used for the Panama holding company | International Business Company (IBC) and Limited Liability Company (LLC) |
| Incorporation method | As per the Panama Company Law |
| Incorporation time required for a Panama holding company | Several business days |
| Types of assets owned by the holding | Stocks, intellectual property, real estate property (in some cases), etc. |
| Requirement for local bank account (Yes/No) | Yes |
| Residency requirements for the founder(s) | Not mandatory |
| Panama holding company advantages | Asset protection, the option to set up an International Business Company and benefit from tax advantages. |
| Precautions | Must observe the local disclosure requirements. |
| Shareholding structure | A parent company sets up the holding in Panama. It can own it fully or partially. |
| Minimum Capital | No prescribed minimum. In practice, USD 10,000 can be used for an IBC. |
| Taxation | The IBC is subject to a tax exemption on revenue derived from outside Panama. |
| Control | The holding is foreign controlled |
| Registered agent requirements | Mandatory |
| Accounting and reporting | Minimum accounting requirements for the IBC. |
| Services for setting up a holding company in Panama | Offered by our team |
Table of Contents
What is a holding company in Panama?
A holding company in Panama is a legal entity created to hold shares in other companies. The holding effectively controls these businesses through majority stock ownership.
Investors can open a company in Panama and structure it to serve this purpose and not the traditional one of deriving income via commercial or trading activities.
How is the holding company used?
The holding is used to:
- Control one or more other businesses through the stock it owns in them;
- Maintain operational oversight without being involved in the controlled company’s daily operations;
- Manage multiple businesses and/or brands, thus diversifying its portfolio;
- Provide tax efficiency and strategic flexibility.
Can I open a holding company in Panama as a foreign investor?
Yes, foreign investors can open holding companies in Panama and maintain full foreign ownership over these structures.
What costs can I expect when I open a company in Panama?
When working with our team, we can provide a Panama company formation package starting from $2,500.
What are the conditions for opening a holding company?
The founders will follow the regular steps required to open an SRL or S.A. company, along with meeting the subsequent tax and regulatory requirements.
Companies in Panama can be opened by a single shareholder. The requirements for company directors stipulate that at least three individuals should be assigned for this role.
What are the steps required to open a Panamanian holding company?
Our team lists the most important steps below:
- Propose a company name, verify it, and receive approval for its use;
- Reserve the chosen company name;
- Provide the documents and submit them for review with our team;
- File for registration (this is handled by our company incorporation agents);
- Wait for the issuance of the business registration certificate.
What documents do I need to open a company?
The following are required when opening a holding company in Panama with an individual shareholder:
- Certified passport copy;
- Proof of address and bank reference. These cannot be older than three months;
- Proof of qualifications (via a CV);
- A statement on the source of the funds used for company creation in Panama.
For a corporate shareholder, the document requirements are different:
- The legal entity’s Articles of Association, Memorandum, and business registration certificate;
- A register of directors and shareholders, along with a list of its authorized signatories;
- A certificate of good standing for the business, issued by the authorities in its country of origin;
- Other documents, as required to provide sufficient information on the beneficial owners, financial situation, and others.
An important requirement for the documents is to be duly certified by a notary public.
How long does it take to open a company in Panama?
When working with our team, entrepreneurs can expect a timeframe of approximately 2 weeks, provided that all the documents we receive for incorporation are in order.
What are the post-incorporation steps?
The post-incorporation steps include bank account opening in Panama.
Because the holding company is not used for trading, import/export activities, or other commercial purposes, it will not require business permits and licenses as other companies would.
How will my holding company be taxed?
The standard corporate income tax in Panama is 25%; however, this is only imposed on net taxable income from Panamanian sources. A holding company in Panama is generally exempt from this.
Contact us for more information on how to open a holding company in Panama, as well as complete assistance during the incorporation and structuring phases.