Panama provides flexible and internationally recognized legal entities for setting up and operating businesses. The corporate framework supports local and foreign investors with efficiency, confidentiality, and asset protection.

1. Corporations (Sociedades Anónimas)
– Fast incorporation.
– No minimum capital required (a reference value is recommended).
– Managed by a board of directors (individuals or entities, residents or non-residents).
– Anonymity and suitable for international operations.

2. Limited Liability Companies (LLCs)
– Maximum of 50 partners. Less formal than corporations.
– Liability limited to the amount contributed by each partner.

3. Private Interest Foundations
– Ideal for asset protection and estate planning.
– Cannot engage in commercial activity directly, but can hold investments.
– Often combined with IBCs for tax efficiency and privacy.

4. Trusts (Fideicomisos)
– Used for asset management and succession planning.
– Tax advantages for non-Panamanian assets or beneficiaries.

5. Redomiciliation (Company Continuation)
– Foreign companies can relocate to Panama without losing legal continuity.
– Panamanian entities may redomicile to other jurisdictions if permitted.

6. Registration and Compliance
– Must be registered in the Public Registry.
– Bookkeeping required (Law 52), records to be kept for 5 years and may be stored abroad.
– Mandatory UBO registration (Law 129 of 2020).
– Accounting declaration required even without local activity (Laws 52 and 23).

Conclusion:
Panama’s legal framework is modern and internationally aligned, supporting a wide range of business models with robust compliance and operational confidentiality.