What is the difference between an S. de R.L. and an S.A. in Panama?

## Two main company forms

The Sociedad de Responsabilidad Limitada (S. de R.L.) is Panama's LLC-equivalent. It has no minimum capital requirement and is managed by one or more gerentes (managers). It is the common choice for small and medium businesses.

The Sociedad Anónima (S.A.) is the classic Panamanian corporation, managed by a board of directors. It has historically been popular for its share flexibility. Finn's Panama rules list no minimum capital for the S.A. beyond a nominal statutory amount.

## Sole traders

A persona natural comerciante is an individual trader. There is no separate company registration, only personal income tax and personal liability.

## Setting up

There are three separate steps. Register the company with the Registro Público de Panamá. Obtain a RUC, the tax identifier, from the DGI. Then obtain an Aviso de Operación, the business-operation notice, before trading.

## Same tax treatment

Both company types pay the flat 25% ISR on net taxable Panama-source income, owe the US$300 tasa única each year and can be ITBMS-registered. Panama's territorial system applies to both.

## What Finn does

Finn defaults to the S. de R.L. as the usual SME setup, tracks the tasa única date from your incorporation month and keeps the RUC and Aviso de Operación details on file.