Business bank account in Panama: opening a company account

Panamanian sociedad anónima or foreign company

Opening a business bank account in Panama gives a Panamanian or foreign company a US-dollar account, granted once the bank has checked the articles, directors, beneficial owners and real activity. The most common vehicle is the sociedad anónima formed through a registered agent, though banks clearly prefer structures with customers, suppliers or operations in Panama.

For a company bank account in Panama, the most common vehicle is the sociedad anónima governed by the 1927 law and formed through a registered agent. A foreign company can also apply, but Panamanian banks clearly prefer structures with customers, suppliers or operations in Panama.

Aviso de operación and RUC for local trading

A company trading in the country needs an aviso de operación and a RUC number from the Dirección General de Ingresos. Both documents reassure the bank that the local business is real and are usually requested at onboarding.

Registered agent and the beneficial owner register

Since Law 129 of 2020, the registered agent must record the company's beneficial owners in a centralised, non-public register. The bank carries out its own identification and asks for ID, proof of address and source of wealth for every significant owner.

Mandatory bookkeeping even without local business

Law 52 of 2016 requires Panamanian companies, including those operating only abroad, to keep accounting records and lodge a copy with the registered agent. A bank will often want the latest financial statements before accepting a corporate client.

Regional trade out of the Colón Free Zone

Distributors in the Colón Free Zone re-export to Latin America and the Caribbean with large dollar flows. Banks review invoices, bills of lading and end buyers, because this triangular trade carries a high risk of trade-based money laundering.

Card acquiring and payment terminals

To sell in store or online with a business account in Panama, the company signs a separate acquiring agreement with the bank or a local processor. The acquirer checks the sector, expected volume and chargeback ratio, and may hold a reserve on early settlements.

Signatories, mandates and online banking

The business platform of Banco General lets a company set several approval levels for payments, which means filing the list of signatories and the board resolution appointing them when the account is opened. Any change of director should be notified promptly.

How long a company file takes to review

Reviewing a corporate file in Panama often takes several weeks, longer when shareholders live abroad or the ownership chain includes several companies. Foreign documents generally need an apostille followed by a Spanish translation.

Corporate income tax and the source of profits

Profits from business carried on in Panama are taxed at 25 percent, while profits earned entirely outside the territory are generally not. The bank expects the director to be able to explain that distinction clearly.

CRS transparency for the company and its owners

A passive non-financial entity owned by non-residents has its controlling persons reported under the CRS. Shareholders living in France should also review the French controlled-foreign-entity rules, articles 123 bis and 209 B of the tax code, with their adviser.

Documents to prepare for a business bank account in Panama

For a business bank account in Panama, the bank first asks for the constitutional documents of the company: articles of incorporation, public registry certificate, list of directors and shareholders, and a recent certificate of good standing. Documents issued abroad generally need an apostille and a Spanish translation. Check that the name, address and dates are identical everywhere, because a minor discrepancy is enough to delay the review. Together these documents form the base of any company bank account in Panama.

Each director, signatory and significant owner must then provide an identity document, recent proof of address and evidence of the origin of their wealth. If the company is held by other companies, the bank traces the chain back to the individuals and requests the matching documents. A clear group chart prepared in advance avoids many exchanges with the compliance team.

Complete the file with a description of the activity: nature of sales, main customers and suppliers, counterparty countries, expected monthly volumes and, for a company trading locally, the aviso de operación and RUC number. Add the latest financial statements or the accounts kept by the registered agent. A consistent file does not guarantee that the account will open, but it shows a real and serious business.

Questions to ask before opening a company bank account in Panama

Ask whether the bank opens accounts for companies whose shareholders live abroad, and whether a director must be physically present in Panama. Panamanian banks prefer structures with customers, suppliers or local activity. Get the answer in writing, because it varies with the institution, the nature of the business and the risk level assigned to the shareholders' country. These points apply to any business bank account in Panama, whichever institution you approach.

Then ask about day-to-day operation: monthly fees, minimum balance, approval levels for payments, limits, online banking and the number of signatories. If the company takes card payments, ask about the terms of the acquiring agreement, the chargeback ratio tolerated and any reserve on early settlements. Write down every figure the bank quotes to you.

Finally, ask which documents the bank requires each year, how it classifies the company for CRS and what it reports about the people who control it. Clarify the usual timing for changes of director or signatory. Keep every answer received, because it will serve as a reference during periodic reviews and in case of a later disagreement. Doing so makes later reviews of the corporate account in Panama much easier.

Common mistakes with a corporate account in Panama

The first mistake is to present a company with no understandable activity. Banks look at economic reality: customers, suppliers, contracts, invoices. A structure whose purpose appears in no document, or whose announced flows do not match the articles, is almost always refused. Document the activity before applying, with dated and consistent papers. A business account in Panama depends on that readability.

The second mistake is to neglect bookkeeping and the beneficial owner register. Even a company operating only abroad must keep accounting records and lodge a copy with the registered agent, and its beneficial owners must be entered in the register. Missing or outdated information complicates opening as well as the later reviews carried out by the bank. This work is essential.

The third mistake is to confuse a foreign company with a Panamanian one in the tax analysis. Profits from business carried on in Panama are taxed, those earned entirely outside the territory generally are not, and the bank expects the director to explain that distinction. Have the structure validated by a local adviser and, where needed, by a French tax specialist.

Local company or foreign structure: the effect on the account application

A Panamanian company that trades in the country and holds an aviso de operación and a RUC presents a clearer profile than a foreign structure with no tie to Panama. That does not mean a foreign company is excluded, but the bank will ask for more evidence of the real activity, the origin of funds and the counterparties. So expect to prepare a fuller file.

Before choosing, compare the requirements of several banks and test them against your business model. A distributor in the Colón Free Zone, a services company and an exporter do not have the same needs or the same flows. The right choice follows from how the company will actually trade.