Maksym Stepanenko
Managing Partner, Crystal Tax
International client projects since 2012: company structures, tax, immigration, DUNS and NCAGE. 50+ jurisdictions.
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Panama company formation, turnkey: an S.A. corporation or a private interest foundation, resident agent, beneficial owner register, bookkeeping and a bank account, with the owner's taxes in Ukraine calculated.
Since 2012 · 50+ jurisdictions · company, bank account, bookkeeping and CFC in one team · first consultation free
In brief
- Panama company formation usually means a corporation (sociedad anónima, S.A.) under Law No. 32 of 1927. To hold family assets, clients use a Panama private interest foundation under Law No. 25 of 1995.
- Panama taxes only Panamanian-source income: the income tax rate is 25%, and foreign income is exempt from income tax. From 2027, companies in multinational groups without substance pay 15% on foreign passive income.
- We choose the form, register the company through a resident agent, enter the beneficial owners in the register, arrange the annual delivery of accounting records, prepare the bank package and calculate the CFC position in Ukraine.
- Usually, in our experience, registration takes 1–3 weeks after the founders are checked, and the route to a working bank account takes 1–3 months. The timeline depends on the case, its details, the work of the authorities and force majeure.
- As of 2026, Panama remains on the EU list of non-cooperative jurisdictions for tax purposes and on Ukraine's list of low-tax jurisdictions. EU banks and counterparties check such companies more strictly, and an owner from Ukraine needs a CFC and transfer pricing calculation.
Your situation
Pick the situation closest to yours: a short outline of the route and the first step.
Trade and services in Latin America
A Panama corporation is convenient for deals with partners in the region and settlements in US dollars. First step: we review the counterparties and where the income will come from, to understand the taxes in Panama and in Ukraine.
Example. A grain exporter from Ukraine sells to buyers in Central America. We register a corporation, open a bank account, set up the books and calculate the owner's tax in Ukraine under the CFC rules in advance.
Discuss this case →Real estate or assets in Panama
For a property in Panama we register a corporation to own it, or a foundation. First step: we look at where the asset is and who the heirs are, and choose the form.
Example. An entrepreneur buys an apartment in Panama City. We register a corporation with him as the beneficial owner, put the purchase in the company's name, and arrange the annual fees and delivery of accounting records to the agent.
Discuss this case →Inheritance and family assets
A private interest foundation holds assets and passes them to heirs under its charter, without the formalities of a will. First step: we list the assets and the circle of beneficiaries.
Example. A family wants shares in its companies to pass to the children without a dispute between heirs. We set up a foundation, transfer the shares to it, appoint the foundation council and a protector and prepare the CFC notices in Ukraine.
Discuss this case →A holding company for shares in other companies
A Panama corporation can hold shares, but from 2027 foreign dividends and interest within a multinational group require substance. First step: we check whether the structure falls under this rule.
Example. The owner of IT companies in Poland and Ukraine is considering a Panama holding. We calculate the 15% tax on passive income without substance and the CFC position in Ukraine, and compare it with a holding in the EU or the UAE.
Discuss this case →You already have a Panama company
We bring the existing company into good standing. First step: we check the agent, the beneficial owner register, payment of the annual fee and delivery of accounting records by 30 April.
Example. A corporation was registered ten years ago, the agent stopped working, and the fee has not been paid for two years. We change the agent, pay the fee, restore the books and enter the beneficial owners in the register before the company's rights are suspended.
Discuss this case →You need a bank account, and banks refuse
A Panamanian bank assesses the beneficial owners, the source of funds and tax residency. First step: we put together the business profile and documents before filing.
Example. A company was refused by a bank because its activity was unclear. We prepare a business description, contracts and proof of source of funds and file with a bank that works with this profile.
Discuss this case →What turnkey Panama company formation includes
Turnkey Panama company formation covers the route from choosing the form to the first annual reporting: you get a company with an agent, a beneficial owner register entry, a bank account and a calendar of obligations.
- Choosing the form. An S.A. corporation or a private interest foundation, with taxes in Panama and in Ukraine calculated.
- Resident agent. By law, the agent is a Panamanian lawyer or law firm. We work with partner agents and run the KYC check before filing.
- Registration. Articles of incorporation (pacto social) or the foundation charter, appointment of directors and officers, entry in the Public Registry of Panama.
- Beneficial owner register. The agent enters the ultimate owners in the central register within 15 business days of registration.
- Shares. We issue registered shares.
- Bank account. We choose a bank in Panama or elsewhere, prepare the KYC package and support the review.
- Bookkeeping and annual obligations. We keep the accounting records, deliver them to the agent by 30 April and pay the annual fee.
- CFC in Ukraine. For an owner who is a Ukrainian tax resident, we file the notice and the annual CFC report.
Panama corporation or private interest foundation: which form to choose
An S.A. corporation is chosen for business and holding assets, a private interest foundation for family assets and passing them to heirs.
| Criterion | Corporation (S.A.) / Private interest foundation |
|---|---|
| Law | Corporation (S.A.): Law No. 32 of 1927 Private interest foundation: Law No. 25 of 1995 |
| Purpose | Corporation (S.A.): Trade, services, holding real estate and shares Private interest foundation: Holding family assets and passing them to heirs under the charter |
| Management | Corporation (S.A.): Board of at least three directors; president, secretary and treasurer Private interest foundation: Foundation council of three individuals or one legal entity, protector optional |
| Capital | Corporation (S.A.): The law sets no minimum Private interest foundation: Initial assets of at least 10,000 balboas, which equals USD 10,000 |
| Commercial activity | Corporation (S.A.): Permitted Private interest foundation: Only occasionally, with profit directed to the foundation's purposes |
| Agent in Panama | Corporation (S.A.): Mandatory Private interest foundation: Mandatory, signs the foundation charter |
Founders of a corporation can be foreigners, and they do not need to live in Panama. See also: a bank account in Panama.
Describe your task, and at a free consultation we will tell you whether Panama fits, which form to choose and how taxes in Ukraine will work.
How long Panama company registration takes
Usually, in our experience, registering a Panama corporation takes 1–3 weeks after the agent checks the founders, and the whole route to a working bank account takes 1–3 months. The timeline depends on the case, its details, the work of the authorities and force majeure.
| Stage | Usually, in our experience |
|---|---|
| Choosing the form, agent KYC, preparing documents | 3–10 business days |
| Registration in the Public Registry | 1–2 weeks |
| Beneficial owner register | Within 15 business days of registration, as the law requires |
| Apostille and courier of originals | 1–3 weeks, depending on the destination country |
| Bank account | 1–3 months, often with a meeting at the bank |
If you need the company for a deal or by a date, tell us at the consultation and we will plan the steps around it.
What the cost of Panama company formation depends on
We price Panama company formation case by case: the cost is made up of government fees, the annual fee, agent services and the scope of our work.
- corporation or foundation;
- the number of founders, beneficial owners and levels in the structure;
- who will serve as directors and officers;
- the bank and how complex the source of funds review is;
- bookkeeping and delivery of accounting records to the agent;
- apostille, translations and document delivery;
- CFC reporting in Ukraine;
- restoring an existing company if the fee or bookkeeping has lapsed.
We work under a contract. Send a short description of the task, and within one business day we will send an estimate with stages and timelines.
Why clients trust us with Panama company formation
A Panama company requires careful work with the agent, the registry, the bank and taxes in Ukraine, and clients have trusted us with it for years for five reasons:
In business since 2012
For fourteen years we have registered companies, opened bank accounts and handled tax matters in 50+ jurisdictions. We know the requirements of registries, agents and banks from our own cases.
We deal with agents, the registry and banks
We handle correspondence with the resident agent, the registry and the bank ourselves and answer their requests. We need documents and decisions from you.
We see the job through
We address comments from the agent, the registry or the bank at no extra charge until the company is registered and the bank decides on the application. If a license is needed, we work through an accredited partner and remain responsible to you.
One team for the whole structure
The company, bank account, bookkeeping, taxes in Ukraine and the CFC are handled by one team of Crystal Tax lawyers and accountants together with partners in Panama.
Contract and confidentiality
The scope of work, timelines and confidentiality are set out in the contract. We disclose information about you and the company only to the extent the law, the agent and the bank require.
How to register a company in Panama: step by step
Panama company formation with us goes through six stages. We need documents and decisions from you, and there is no need to travel to Panama for registration.
- Consultation. We review the purpose, assets, counterparties and the owners' tax residency. The first consultation is free.
- Form and taxes. Corporation or foundation, with taxes calculated in Panama and in Ukraine, including CFC rules.
- KYC and documents. We collect documents for the founders and beneficial owners, and the agent checks them under the anti-money laundering law.
- Registration. We sign the articles, the agent enters the company in the Public Registry, and we issue registered shares.
- Beneficial owners and bank account. The agent enters the owners in the beneficial owner register, and we prepare the package and file the bank application.
- Bookkeeping and annual obligations. We start the bookkeeping and put the annual fee, delivery of accounting records to the agent by 30 April and the CFC report in Ukraine in the calendar.
Documents required for Panama company registration
For Panama company registration the agent collects details of each founder and beneficial owner and a description of what the company will be used for.
- passport;
- residential address, phone and email;
- description of the main activity and purpose of the company;
- bank and business references, or contacts of people who can provide them;
- proof of source of funds;
- if the founder is a company: corporate documents with apostille and details of owners holding 25% or more.
The bank also needs a business description, contracts or invoices, and a declaration that the account activity is consistent with tax obligations in the country of residence. We give the exact list after the consultation.
Taxes and annual obligations of a Panama company
Panama levies income tax only on Panamanian-source income, wherever it is received. Foreign-source income is exempt from income tax. When dividends are paid, dividend tax may apply.
| Tax or obligation | Rule |
|---|---|
| Income tax | 25% on Panamanian-source income |
| Foreign passive income | From the 2027 tax period, companies that belong to a multinational group and have no economic substance in Panama pay 15% on net foreign passive income: dividends, interest, royalties, capital gains, income from real estate and other capital. Law No. 526 of 28 May 2026 |
| Dividends | Usually 10%, 5% from foreign income, 20% on bearer shares |
| Annual fee (tasa única) | Paid by corporations and foundations every year. Until the fee is paid, no changes are entered in the registry; after three years of non-payment the company's rights are suspended |
| Accounting records | Kept by all companies, including those with no activity in Panama, retained for 5 years and delivered to the agent by 30 April each year, or the agent is told where they are kept. Law No. 52 of 2016 as amended by Law No. 254 of 2021. Penalty: from 5,000 to 1,000,000 balboas |
| Beneficial owner register | The agent enters the owners within 15 business days of registration, and the company informs the agent of changes within 15 business days. Law No. 129 of 2020 |
| Bearer shares | Only through an authorized custodian. Companies that did not switch to this regime by 31 December 2015 cannot issue them |
A Panama company and the owner's taxes in Ukraine
For a Ukrainian tax resident, a Panama company or foundation is a controlled foreign company, and the Ukrainian taxes on it should be calculated before registration.
- Panama is on the Ukrainian list of low-tax jurisdictions, and transactions with Panamanian companies can become controlled transactions for transfer pricing;
- Ukraine and Panama have no bilateral double tax treaty; both countries take part in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Whether a Panama company qualifies for the exemption under paragraph 39².4.1 of the Tax Code of Ukraine, we check against its income and substance;
- regardless of this, CFC profit is exempt if the total income of all the owner's CFCs does not exceed the equivalent of EUR 2 million;
- the CFC rules also apply to foundations;
- the notice of acquiring a stake is filed within 60 days, and the CFC report annually together with the tax return;
- Panama and Ukraine take part in the automatic exchange of account information under the CRS standard.
More: controlled foreign companies.
Panama's international status in 2026
Panama was removed from the FATF grey list on 27 October 2023. As of February 2026 it remains on the EU list of non-cooperative jurisdictions for tax purposes.
- the EU list is reviewed twice a year, and we check Panama's current status before starting a project;
- EU counterparties and banks apply enhanced checks to companies from listed jurisdictions, so for work with Europe clients often choose a company in the EU or the UAE;
- Panamanian banks must identify owners holding 10% or more and refuse if the beneficial owner cannot be identified.
If the business is linked to the EU, we compare Panama with other jurisdictions: company formation abroad, UAE company formation.
How to start your Panama company formation
To start, write two or three sentences on why you need the company, which assets or deals it will hold and where you are a tax resident. We will assess the task within one business day and propose the form, the steps and a tax calculation.
Other international business services
Sources
Ley 32 de 1927 sobre sociedades anónimas; Ley 25 de 1995 sobre fundaciones de interés privado; Ley 52 de 2016, MEF; Ley 129 de 2020, beneficiarios finales, MEF; Ley 526 de 2026, Gaceta Oficial; PwC Worldwide Tax Summaries: Panama; European Commission: EU list of non-cooperative jurisdictions, February 2026; Cabinet of Ministers of Ukraine Resolution No. 1045, list of low-tax jurisdictions; Tax Code of Ukraine, Article 39-2. Reviewed and updated on 27.09.2026.
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Frequently asked questions
How much does Panama company formation cost?
Does a Panama company pay taxes?
Which is better: a Panama corporation or a foundation?
Can I register a company in Panama remotely?
Who can be a director of a Panama corporation?
Does a Panama company need bookkeeping if it does no business in Panama?
Are the owners of a Panama company disclosed?
Is Panama on any blacklists?
Do I pay tax in Ukraine on the profit of a Panama company?
How long does it take to register a company in Panama?
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