With its friendly regulatory framework and favorable business environment, Panama has become the preferred offshore jurisdiction to establish crypto companies.
Registering a cryptocurrency company in Panama costs only € 4,500 for a maximum of 2 weeks.
Start the process of obtaining an encryption license in Panama immediately.
Why choose Panama for cryptocurrency business?
Panama offers a direct and flexible approach to company formation, in stark contrast to the complex regulatory frameworks that many other jurisdictions impose on cryptocurrency businesses. This allows the company to operate with minimal oversight, avoiding lengthy approval processes and high compliance costs. At Rengang Yongsheng, we specialize in helping crypto entrepreneurs navigate Panama's favorable legal environment to launch their companies quickly and efficiently. Panama is a cryptocurrency-friendly country with several key advantages:
Unregulated legal crypto activity:
Panama does not have a virtual asset service provider (VASP) system, and cryptocurrency activities such as token issuance, trading and promotion are completely legal. You are free to conduct your business without a financial license or regulatory approval.
Privacy Policy
Panama ensures the privacy of the company's ultimate beneficial owner (UBO). While the names of the directors must be listed in public records, the shareholders and the UBO remain confidential. We also offer a proxy service to further protect your privacy.
0% corporate tax rate:
Panama does not tax income earned abroad. As a result, Panama is an attractive destination for global businesses looking to optimize their tax strategies.
No AML/KYC requirements:
The government does not impose anti-money laundering or "customer identification" requirements on cryptocurrency businesses, so you are free to conduct your business. However, we strongly recommend that you comply with the laws of the countries you serve.
Easy to set up:
Registering a company in Panama is very simple and can be completed in a few days. There are no nationality or residence restrictions for directors or shareholders, so Panama is a convenient choice for international entrepreneurs.
No strict MiCA regulations
Panama's regulatory independence ensures that your cryptocurrency business is not affected by the EU MiCA regulations. This not only improves operational flexibility, but also significantly saves compliance costs.
Global Trade Portal
Panama is located at the intersection of North and South America and is a global trade and business center. Due to its excellent location, it can quickly enter the international market, so it is the perfect starting point for the cryptocurrency business.
No capital requirements
Panama has no minimum capital requirements for company registration, which makes it easier and more affordable for entrepreneurs to set up their own crypto businesses.
an environment conducive to innovation
The government of Panama encourages technological innovation and entrepreneurship, creating a positive environment for the development of the cryptocurrency industry.
Regulatory Landscape: Why Panama Is a Safe Choice for Cryptocurrencies?
Panama offers one of the friendliest cryptocurrency legal environments in the Western Hemisphere-here's why this is essential for your business. In many jurisdictions, crypto activity falls into a gray area or is entangled in licensing requirements, and Panama is different:. This means that you can issue, trade, mint, airdrop and promote tokens without obtaining a cryptocurrency license and without interference from financial regulators. Whether you're launching a DeFi protocol, conducting a token sale, or simply managing crypto assets, Panama offers you a breathing space. The main harvest:
There is no virtual asset service provider (VASP) system.
Crypto assets are not considered securities or legal tender-they are considered private assets.
No financial or investment license is required to operate a cryptocurrency company.
Panama's top financial authorities-the Securities Market Supervisory Authority (SMV) and the Superintendency of Banks (SBP)-have made it clear that they do not regulate cryptocurrencies.
Activities such as operating exchanges (in stock or derivatives), issuing tokens or managing Web3 platforms are 100 percent legal, although these activities remain outside the scope of regulation.
What this means for you Regulatory flexibility to enable rapid growth and innovation.
Clearly structured to manage token issuance or fundraising.
An area where cryptocurrencies are not banned, taxed or restricted.
Our Crypto Company Formation Package
Rengang Yongsheng understands that every crypto company has unique needs and goals. That's why we offer three different packages to meet your needs at different stages of your entrepreneurial journey in Panama.
Requirements of Panama
Registering a company in Panama is simple and reasonable. Panama has a business-friendly regulatory environment and clear guidelines, and its establishment process is designed to minimize complexity and time consumption. Whether you're looking to expand globally or start a new business, Panama makes it easy to set up a crypto entity. The main requirements are as follows
At least three directors:
The corporation (S.A.) is the most common structure for crypto companies and requires at least three directors. These directors can be individuals or legal entities, and we can provide director services if required.
Registered Office:
You need to set up a registered office in Panama as part of our service (this service is the same as the legal address of the company).
Registered Agent:
The law requires a local registered agent, and we can provide this service for your company in Panama.
Articles of Association:
We will help you draft the articles of association (or articles of association) and submit them to the Panamanian authorities for the record.
Updated annually:
The company must update annually, including updating director information and paying the update fee. We are responsible for all aspects of this process.
Process for setting up a crypto company
We have streamlined the process of setting up a crypto entity in Panama. Specific operations are as follows
KYC and initial files:
We collect all necessary documents from you, including details of shareholders, directors and ultimate beneficial owners.
Name Registration:
We will check the availability of the company name you have chosen and register it with the Panamanian authorities.
Appointment of Directors:
We will appoint all three directors, which may include your directors and our directors.
Articles of Association (AoI):
We draft and submit articles of association to the Panamanian government. These terms set out the scope of your company's business, including crypto-related activities.
Final Submission and Approval:
After submitting the documents and obtaining the approval of the relevant government agencies, your company will be officially registered within 5 to 7 working days.
Support after the establishment of the company
After your company is incorporated in Panama, we will continue to provide you with a range of services to ensure that your business operates in compliance. Our assistance includes
Annual Update Assistance:
We are responsible for the annual renewal to ensure that your business remains in good standing.
Accounting and Compliance Support:
While cryptocurrency activity is not regulated, we provide ongoing support to ensure compliance with broader corporate regulations.
Document management:
We assist in issuing company documents such as certificates of employment and shareholder agreements.
Comparison with other jurisdictions
Panama does not have specific regulations for cryptocurrencies, crypto assets or tokens, which presents a unique opportunity for crypto entrepreneurs to operate legally with minimal government oversight. Whether you want to issue tokens, trade crypto assets, or run a cryptocurrency-related business, Panama's legal environment offers you the freedom to grow without the heavy compliance burdens of other jurisdictions. Compared to other cryptocurrency-friendly jurisdictions, Panama stands out with its unregulated environment and secrecy. Here's a comparison of Panama:
Panama and the European Union
In the EU, companies must comply with the MiCA framework, which involves strict reporting and regulatory requirements. In Panama, such a framework does not exist, so there is more freedom to operate.
Panama VS.SVG
Like Saint Vincent and the Grenadines, Panama offers a high degree of freedom for crypto activity. However, Panama's more developed infrastructure and strong privacy laws make it a top choice for those seeking greater secrecy.
Panama and Cayman Islands
While both jurisdictions have privacy and tax advantages, Panama's legal environment is simpler and more affordable, requiring no licenses or cumbersome compliance procedures to launch a crypto business.
At Rengang Yongsheng Law Firm, our team consists entirely of highly educated and experienced professionals. With our cooperation, you can be assured of high quality service.
Corporate Structure in Panama: Companies and Foundations
When registering a crypto company in Panama, the two most commonly used legal entities are Panamanian corporations (Sociedad as the Annónima) and private interest foundations. While both entities offer strong privacy protections and are easy to set up, their legal and operational purposes are very different, especially in the context of digital assets and blockchain businesses.
Panama Corporation (S.A.) is ideal for active business operations. It can issue invoices, enter into contracts, hire employees, hold bank accounts, and act as a legitimate voice for cryptocurrency exchanges, consultancies, trading platforms, or NFT marketplaces. It operates like any traditional business company, but benefits from Panama's territorial tax system and zero foreign source income reporting requirements.
Private interest foundations, on the other hand, are not used for commercial activities. Instead, it is often used in the crypto world to hold token reserves, act as a DAO wrapper, or control key governance functions of decentralized protocols. It is particularly popular for asset protection and continuity planning because it has no owners or shareholders, only founders and foundation boards, and is therefore suitable for storing digital assets, managing financial functions, or holding intellectual property (such as smart contract rights).
Here's a breakdown to help you understand the difference:
Features | Panama Corporation (S.A.) | Panama Private Interest Foundation |
---|---|---|
Purpose | Commercial/Business Activities | Asset protection, token library, holding structure |
legal personality | Yes | Yes |
Ownership | Shareholders | No owners-only founders and council |
Management | Board of Directors (3 persons) | Foundation Board (at least 3 members or one corporate board) |
Scope of activities | Can trade, invoice, open accounts | Not directly engaged in commercial activities |
Bank Account Eligibility | Yes | Yes (for asset holding or financial purposes) |
Right to privacy | High-no public register of shareholders or directors | Extremely high-no public ownership, no shareholders |
Use Case | Exchanges, cryptocurrency platforms, consulting, NFT, DeFi applications | Token issuance, DAO finance, smart contract governance, succession planning |
Password Specific Use Cases
If necessary, use the company:
Operate a cryptocurrency exchange, DeFi aggregator or launch pad Provide blockchain consulting or development services Contract with a service provider or exchange Invoicing and receiving fiat/cryptocurrency payments
If needed, you can use the Foundation:
Hold LP tokens in the token reserve or agreement.
Act as a legal wrapper for the DAO
Acts as a neutral custodian of smart contract management keys to build ownership of metauniverse assets or NFT vaults
Develop an inheritance or continuity plan for your crypto assets
Combine the two for maximum flexibility
Many clients choose to combine companies and foundations:
A. Company business (trade, invoices, payroll)
B. The foundation protects assets or oversees governance (token supply, keys, DAO funds)
This arrangement separates responsibilities, strengthens long-term control and helps to spread jurisdictional risks.
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