| LLC | Corporation | Free Zone Company | Branch Office | Rep Office | |
|---|---|---|---|---|---|
| Local Name | SRL | SA | Empresa de Zona Franca | Sucursal | Oficina de representación |
| Company Setup Time | 10 days | 10 days | 10 days | 15 days | 15 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 15 days | 15 days |
| Government Grants Available | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | No | No |
| Legal Liability | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
The Panamanian Corporation
- A Panamanian Corporation is generally used by foreign businesses. A minimum of three directors and one shareholder must be appointed, who may be a local or foreign citizen or resident. Similarly, it shall have a minimum share capital of USD 1.
- It’s not required to register personal details on public records for shareholders and directors. It is one of the main advantages of a Corporation in Panama, which is known as “Sociedad Anónima” in Spanish.
Limited Liability Company (Panama LLC)
- Similar to the Corporation, a limited liability company can be established with a minimum capital of USD 1. It shall also appoint three directors and one shareholder, who may be of local or foreign citizen.
- Anyhow, a Limited liability company shall reveal all the particulars of the directors and shareholders to the general public at large.
The Panama branch office
- A branch office in Panama is owned by the parent company, the holding entity shall describe the extent of the operation of this entity. It can invoice local customers, sign local sales contracts, and receive customer income while maintaining an office or other business place in Panama.
The Panamanian representative office
- An international entity may establish a rep office in Panama provided it is not willing to involve in business in this country. Similarly, this office shall not be allowed to involve in sales and purchase in Panama.
- The representative office shall only involve in operations like;
- Promotion of the business of the holding entity, and
- Conducting market survey.