Panama is recognized as an excellent jurisdiction for international business, offering a straightforward company formation process with competitive costs. This article provides a detailed breakdown of the average expenses involved in establishing and maintaining a standard company in Panama for 2025, focusing on the Sociedad de Responsabilidad Limitada (SRL) structure.
Average Company Formation Costs in Panama
The initial expenses to legally establish a Sociedad de Responsabilidad Limitada (SRL) in Panama include governmental, legal, and compliance-related fees. Here is a detailed summary for 2025:
| Cost Item | Rate (USD) |
|---|---|
| Minimum capital requirement | $2,000 |
| Notary fees (drafting and notarizing articles of incorporation) | $400 |
| Public Registry registration fee | $100 |
| Commercial license (Aviso de Operación) | $55 |
| Legal/lawyer fees (average for standard incorporation) | $800 |
| Miscellaneous government stamps and minor expenses | $145 |
| Total average out-of-pocket formation costs | $1,500 |
Note: While the minimum capital requirement ($2,000) is needed to comply with legal requirements, the actual paid-in amount at incorporation can vary depending on specific company setup choices.
Annual Ongoing Company Maintenance Costs
Regular maintenance of an SRL company in Panama involves several recurring expenses. The table below summarizes the typical annual costs as of 2025:
| Cost Item | Annual Rate (USD) |
|---|---|
| Annual franchise tax (Tasa Única) | $300 |
| Annual registered agent fee | $100 |
| Annual accounting and tax filing (minimum, for inactive companies) | $150 |
| Annual accounting and tax filing (active companies, average) | $650 |
| Typical range for annual maintenance | $350 – $1,200 |
For companies with limited activity (inactive), annual costs are closer to $350, while active businesses can expect average maintenance fees around $1,200 per year.
Summary Table: Panama SRL Creation and Maintenance Costs (2025)
| Cost Category | Amount (USD) |
|---|---|
| Initial company creation | $1,500 (plus $2,000 minimum capital) |
| Annual maintenance (inactive) | from $350 |
| Annual maintenance (active) | from $1,200 |
Source References
Pro Tips for Efficient Company Management in Panama
- Always maintain compliance with annual franchise tax payments ($300) to avoid government penalties and potential company suspension.
- Select a reputable registered agent, as this is a mandatory and relatively low-cost ($100/year) legal requirement for all Panamanian companies.
- If your company is inactive or has minimal transactions, notify your accountant to ensure you don’t overpay for annual filings.
- Keep digital and physical records of all official filings, notarized documents, and annual tax payments for future reference and audits.
Key Points to Remember
Panama offers a cost-efficient and internationally recognized company regime, especially for those seeking straightforward business structures. Startup costs for an SRL average around $1,500 plus the minimum capital, with annual maintenance ranging from $350 for inactive companies to about $1,200 for active businesses. Reliable government digital portals and local advisory services make ongoing compliance simpler than in many other jurisdictions. Accurate planning and professional assistance help ensure all legal requirements are fulfilled smoothly in 2025 and beyond.