Feeling boxed in by high taxes and endless red tape? If you’re an entrepreneur or digital nomad eyeing Panama as your next business base, you’re not alone. Many founders are searching for jurisdictions that respect individual freedom and offer a more rational approach to company formation and maintenance. In this guide, we’ll break down the real costs of starting and maintaining a standard company in Panama in 2025, using only verified data from official sources. No guesswork—just actionable insights to help you optimize your fiscal footprint.
Panama Company Formation Costs in 2025: What to Expect
Setting up a Sociedad de Responsabilidad Limitada (SRL)—the go-to entity for most entrepreneurs in Panama—comes with a clear set of expenses. Here’s a transparent breakdown of the average creation costs, all in USD:
| Expense Item | Amount (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 |
Average total outlay: $1,500 (excluding the minimum capital requirement, which is a deposit, not a fee).
Pro Tip: Streamline Your Incorporation
- Prepare your minimum capital ($2,000) in advance to avoid delays.
- Choose a notary and legal advisor familiar with digital nomad needs.
- Register your company with the Public Registry and secure your commercial license (Aviso de Operación) online via Panama Emprende.
Annual Maintenance Costs: Keeping Your Panama Company Compliant
Once your SRL is up and running, annual maintenance is refreshingly straightforward compared to many high-tax jurisdictions. Here’s what you’ll pay each year in 2025:
| Expense Item | Amount (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 |
Annual maintenance range: $350 – $1,200 depending on company activity.
Pro Tip: Optimize Your Annual Costs
- Keep your company inactive if you’re not trading yet—annual filings drop to $150.
- Negotiate registered agent fees; some providers offer discounts for multi-year commitments.
- File all reports on time to avoid late penalties and maintain your company’s good standing.
Case Study: Real-World Example
Imagine you’re a remote entrepreneur launching a consulting business in Panama in 2025. Your upfront costs for incorporation (excluding the $2,000 capital deposit) will be about $1,500. If you keep the company active, expect to pay around $1,050 annually ($300 franchise tax + $100 agent fee + $650 accounting). If you’re not trading yet, your annual cost could be as low as $550.
Key Takeaways for 2025
- Panama’s company creation costs are transparent and competitive, especially for international founders.
- Annual maintenance is predictable, with significant savings for inactive companies.
- Staying compliant is straightforward—no hidden traps or excessive bureaucracy.
For more details, consult the official resources:
- Panama Emprende
- Public Registry of Panama
- Ministry of Commerce and Industries
- World Bank Doing Business: Panama
- Icaza Law: Incorporation in Panama
- Biz Latin Hub: Incorporate in Panama
With the right strategy, Panama remains a smart choice for those seeking to minimize state-imposed costs and maximize entrepreneurial freedom in 2025.