# Panama Corporation (S.A.)

> The Panamanian Corporation (S.A.) is the most used corporate structure. No director residency required, shareholder anonymity, territorial tax system (0% on foreign income), and $10,000 minimum capital.

[Canonical page](https://investpanama.biz/en/guides/panama-corporation)

The Panamanian Corporation is globally recognized for its flexibility and privacy protection. With a territorial tax system that doesn't tax income generated outside Panama, directors who don't need to be residents, and shareholder anonymity, it's the preferred structure for holdings, international trade, and asset protection.

## Steps

1. **Choose Name** — Verify availability at Public Registry. Must end in S.A., Corp., or Inc.
2. **Define Structure** — Minimum 3 directors (can be nominees), minimum authorized capital $10,000 (doesn't need to be paid in).
3. **Draft Bylaws** — A Panamanian lawyer drafts the Articles of Incorporation and Bylaws.
4. **Register at Public Registry** — Formal registration taking 5-7 business days. Government cost ~$300-500.
5. **Obtain Tax ID and Business License** — Taxpayer ID and business license if operating locally.

## Resources

- [PWC - Panama Corporate Taxes](https://taxsummaries.pwc.com/panama/corporate/taxes-on-corporate-income)

_This information is for guidance only. Consult a corporate lawyer for your specific situation._