How to open a corporate bank account in Panama for foreigners?

Panama Banks
Posted: January 25, 2024
Last Update: January 25, 2024

How to open a corporate bank account in Panama for foreigners can be a somewhat confusing process, especially if you’re doing it without assistance for the first time.

Banks may employ diverse procedures for establishing, opening, and endorsing your account. However, generally, they all adhere to the same rules and processes.

Non-resident foreigners may face additional requirements compared to resident foreigners. Remember navigating the process can be particularly confusing for those undertaking it for the first time. Having a clear understanding of how, when, and where to complete specific tasks will greatly facilitate this journey.

Hence, it is strongly recommended to seek the assistance of law firms or business consultants to guide you through this process.

If you prefer to handle the process independently, the following steps will greatly assist you.

Steps on How to Open a Business Bank Account in Panama for Foreigners.

How to open a corporate bank account in Panama ?

Step 1 - Learn the Tax Regulation

Before opening a bank account, it is highly recommended that you familiarize yourself with Panamanian tax regulations. Panama has several double taxation treaties that can work to your advantage.

If you lack sufficient knowledge of tax regulations in Panama, our eBook Essential Panamanian Tax Guide is an excellent starting point. Written in straightforward language, it comprehensively covers all the essential information about Panamanian tax regulations.

Step 2. Create Your Company

In order to open your corporate bank account in Panama, establishing a legal entity is a prerequisite. Consequently, it's essential to create a legal entity before proceeding to the bank.

The two most commonly utilized structures are Sociedad Anónima (Corporation) and Fundación (Trust Foundation). For this crucial step, engaging a local lawyer or firm is indispensable, as having a Resident Agent is mandatory for all legal entities in Panama.

Step 3 - Documentation and Forms

You will need to fill out a series of forms and provide specific documentation to the bank. These are essential requirements; without them, you will not be able to open your personal bank account in Panama.

In our post "Requirements to Open a Bank Account in Panama," we provide detailed explanations of the requirements, documents, and forms that banks typically request. It is a must-read if you are planning to open a personal bank account in Panama.

Step 4 - Opening Process

Once you have a clear understanding of the essential aspects of Panamanian tax regulations and your company is prepared, you can initiate the process of opening a corporate bank account.

The procedure to open a corporate bank account in Panama for foreigners closely mirrors the process for nationals. A comprehensive overview of the account opening process is available in our article "Process of Opening a Bank Account in Panama," which essentially involves submitting an application, participating in an interview, and awaiting approval.

Upon completion of this process and the subsequent approval of your bank account, you are now prepared to engage in business transactions. Congratulations!

Is Banking in Panama Safe?

Yes, bank accounts in Panama are secure. Establishing a personal bank account in a Panamanian bank is both safe and reliable. This can be attributed largely to the rigorous requirements for obtaining a banking license in Panama. Stringent laws and high standards are imposed to acquire a banking license, and the Bank Superintendence diligently monitors each bank on a monthly basis.

There are no hidden or questionable secrets regarding how to open a personal bank account in Panama; only certain myths circulate online.

We’ve authored an insightful article titled “Myths of Bank Accounts,” where we dissect fact from fiction. We highly recommend reading it.

Panamanian banks are known for their conservative practices, avoiding risky lending. Panama’s official currency is the U.S. Dollar, eliminating exchange risks for North Americans or foreigners with assets or businesses in Dollars.