Panama company and foundation setup for Indians
A Sociedad Anónima or a Private Interest Foundation, with resident agent, accounting records and beneficial ownership compliance kept in order.
Panama offers a territorial tax system, a long-established corporate law and the Private Interest Foundation. It is most relevant to businesses trading with Latin America and to some family structures. Its reputational position — it has been on the EU list of non-cooperative jurisdictions since 2020, with a revision due in October 2026 — and India's own rules both need weighing before you choose it.
Key facts at a glance
| Entities | Sociedad Anónima under Law 32 of 1927; Private Interest Foundation under Law 25 of 1995 |
| Directors | A Sociedad Anónima has at least three directors, of any nationality, resident or not |
| Resident agent | A Panamanian lawyer or law firm must act as resident agent |
| Tax basis | Territorial — income produced outside Panama is not taxed under Fiscal Code Article 694; from fiscal year 2027, Law 526 of 2026 adds a substance test for entities in multinational groups earning foreign passive income |
| Annual franchise tax | USD 300 a year for a Sociedad Anónima and USD 400 for a foundation |
| Records | Accounting records (or copies) are provided to the resident agent each year; beneficial owners are recorded in the private SIRCUBF registry |
| International lists | Removed from the FATF grey list in October 2023; on Annex I of the EU list of non-cooperative jurisdictions as at 8 October 2026 (February 2026 revision; next revision due October 2026) |
| India link | No DTAA or bilateral tax information exchange agreement with India |
Best suited for
- Trading with Central and South America
- Some family and succession structures (Private Interest Foundation)
- Ship-owning and specialised international activities
What we handle
- Suitability and Indian rules review before you commit
- Incorporation through a Panamanian resident agent
- Accounting-record and beneficial ownership compliance
- Bank account support
- ODI and Schedule FA reporting where applicable
The Indian side
Indian residents need specific advice before using Panama. ODI by resident individuals is limited to operating businesses, real estate activity (buying and selling real estate or trading in transferable development rights) is a prohibited ODI sector, and the treatment of a remittance to a foundation must be confirmed under LRS before funds move. Panama's EU listing can also affect banking and counterparties. See ODI & FEMA compliance.
Sources: Law 32 of 1927 on corporations; Law 25 of 1995 on Private Interest Foundations; Fiscal Code Article 694; Law 526 of 2026 (economic substance); DGI guidance on the annual franchise tax (tasa única); Law 52 of 2016 and Law 254 of 2021 (accounting records); Law 129 of 2020 (beneficial owners registry); FATF statement of 27 October 2023; Council of the EU list of non-cooperative jurisdictions (revision of 17 February 2026).
Ready to set up in Panama?
We aim to reply within one business day with initial observations and next steps.