What is S. de R.L. (Sociedad de Responsabilidad Limitada)?
The S. de R.L. is Panama's LLC-equivalent, with no minimum capital requirement and managed by one or more gerentes (managers). It is the common choice for small and medium businesses.
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Current Rate (Calendar year by default)
Not applicable
Example
Two founders set up an S. de R.L. for a consultancy, appoint one gerente, then obtain a RUC and an Aviso de Operación.
How S. de R.L. (Sociedad de Responsabilidad Limitada) works in Panama
Registration is with the Registro Público de Panamá, which is a separate body from the DGI. After registration the company obtains a RUC and an Aviso de Operación before it can trade.
The other common form is the Sociedad Anónima (S.A.), the classic Panamanian corporation managed by a board of directors and historically popular for its share flexibility. A third route is the persona natural comerciante, a sole trader with personal liability and personal income tax only.
Both the S. de R.L. and the S.A. owe the annual tasa única and file ISR at the flat 25% rate.
Related terms
The tasa única is a flat annual corporate franchise tax of US$300 owed by every Panamanian corporation and private interest foundation. It is paid to the Registro Público, not the DGI, and it is not an income tax.
The RUC is Panama's primary tax identifier for both individuals and companies, issued by the DGI. It appears on invoices and on ITBMS and income tax filings.
The Aviso de Operación is the business-operation notice or licence required before a company can legally trade in Panama. It is separate from the RUC and is not itself a tax ID.
Impuesto Sobre la Renta (ISR) is Panama's corporate income tax. It is a flat 25% on net taxable Panama-source income for resident companies such as the S. de R.L. and the S.A.
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