Corporation (Sociedad Anónima) in Panama — Amazon FBA & E-Commerce Formation Guide
For non-US residents, a US LLC (e.g., Wyoming or Delaware) is highly popular for Amazon FBA because it provides easy access to US payment gateways (Stripe, Mercury) and Amazon US, often with 0% US corporate tax if structured correctly. If selling primarily in Europe, a UK LTD or Estonian OÜ simplifies VAT registration and OSS compliance.
Last verified: June 13, 2026
Corporate Tax
25.0%
State Tax
0.0%
Formation Cost
$300
Annual Fee
$300
Forming a Corporation (Sociedad Anónima) in Panama as a Amazon FBA & E-Commerce means a total tax burden of 25.0% and an official formation cost of $300. There is no minimum capital requirement. Standard formation takes 5-7 business days, or 2-3 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $900
Ongoing (per year)
≈ $650
Why Corporation (Sociedad Anónima) for Amazon FBA & E-Commerce?
A business model where you sell physical products on Amazon's marketplace, utilizing their Fulfillment by Amazon (FBA) network. Choosing the right jurisdiction is critical for managing inventory taxes, VAT/Sales Tax nexus, and accessing global payment gateways.
Ideal for
- US LLC (Wyoming/Delaware) for the US market
- UK LTD for the European market
- Estonian OÜ for digital nomads
- UAE Free Zone for tax-free scaling
Challenges to watch
- Sales tax and VAT compliance across multiple states/countries
- Strict Amazon seller account verification processes
- Product liability risks requiring corporate shields
- Managing multi-currency cash flows and high conversion fees
Key decision criteria
- Does the jurisdiction support easy Amazon Seller Central registration?
- Can you easily open a business bank account compatible with Amazon disbursements?
- What are the VAT or Sales Tax nexus implications for where your inventory is stored?
- Do you need product liability insurance, and is it available for your entity type?
Corporation (Sociedad Anónima) formation requirements
Minimum capital
None
Standard timeline
5-7 business days
Expedited timeline
2-3 business days
Local director
Not required
Registered office
Virtual office allowed
Notarization
Required
A minimum of three directors is required (President, Secretary, Treasurer), but they can be of any nationality and reside anywhere. Nominee directors are permitted.
Estimated breakdown (based on avg. $150,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 7%. Registration threshold: 36,000 USD. Non-resident B2C providers of digital services are generally exempt from ITBMS (VAT) registration, while B2B sales may be subject to a reverse charge mechanism.
Banking & payments for Amazon FBA & E-Commerce
Opening a corporate bank account in Panama is notoriously slow and requires extensive KYC/AML documentation. Non-resident founders must usually visit in person for a brief interview, though some banks allow remote opening through a local lawyer.
Supported payment gateways
Remote-friendly accounts
Payoneer
A global fintech alternative that supports Panamanian entities, ideal for receiving international B2B payments in multiple currencies.
Panama incentives & advantages
EMMA (Multinational Company for the Provision of Manufacturing Services)
Reduced corporate tax rate (5%), exemption from import duties, and special visa categories for foreign employees.
SEM (Multinational Headquarters)
5% corporate tax rate, exemption from dividend tax, and special immigration visas for executives.
Corporation (Sociedad Anónima) formation steps
Step 1: Choose and reserve a unique company name with the Public Registry (must end in S.A., Inc., or Corp.). Takes 1-2 days.
Step 2: Appoint a Panamanian lawyer or law firm to act as the mandatory Resident Agent.
Step 3: Draft and notarize the Articles of Incorporation (Pacto Social) detailing directors, capital, and purpose.
Step 4: Register the notarized Articles of Incorporation with the Public Registry of Panama. Takes 3-5 days.
Step 5: Pay the initial Annual Franchise Tax (Tasa Única) of $300 to activate the company.
Step 6: Obtain the Taxpayer Identification Number (RUC) and Tax ID (NIT) from the General Revenue Directorate (DGI).
Step 7: Open a corporate bank account and establish the required accounting record-keeping procedures.
Amazon FBA & E-Commerce FAQ
Can I open a US Amazon FBA account as a non-US resident?
Yes. Forming a US LLC allows you to get an EIN and open a US business bank account, which makes the Amazon Seller Central verification process much smoother and avoids high currency conversion fees.
Do I need to pay US taxes if I sell on Amazon US?
If you are a non-US resident with a single-member LLC and no physical presence (ETBUS) in the US, you may not owe US federal income tax. However, you must still collect and remit Sales Tax in states where you have economic or physical nexus (like storing inventory in an Amazon warehouse).
Which is better for Amazon Europe: UK LTD or US LLC?
A UK LTD is generally better for Amazon Europe as it simplifies obtaining a UK/EU VAT number and EORI number, which are mandatory for importing and storing goods in European fulfillment centers.
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Related guides
Complete Corporation (Sociedad Anónima) guide
Taxes, requirements, banking, compliance
Corporation (Sociedad Anónima) cost calculator
One-time and annual cost breakdown
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