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Civil PartnershipAmazon FBA & E-Commerce

Civil Partnership (Sociedad Civil) 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

$50

Annual Fee

$0

Forming a Civil Partnership (Sociedad Civil) in Panama as a Amazon FBA & E-Commerce means a total tax burden of 25.0% and an official formation cost of $50. 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

$950

Ongoing (per year)

$800

Detailed cost calculator →

Why Civil Partnership (Sociedad Civil) 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?

Civil Partnership (Sociedad Civil) 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 local resident agent (lawyer or law firm) is required. Note that practicing certain professions requires Panamanian citizenship.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $150,000 revenue)

Gross Revenue$150,000
Corporate Tax-$37,500
Formation Cost-$50
Annual Fee-$0
Net Profit$112,450

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 7%. Registration threshold: 36,000 USD. Foreign providers of digital services to consumers in Panama are generally required to register and charge 7% ITBMS.

Banking & payments for Amazon FBA & E-Commerce

Opening a corporate bank account in Panama can be rigorous due to strict KYC and AML regulations. While remote opening is possible with the assistance of a resident agent, it often takes 4 to 8 weeks and requires extensive documentation, including apostilled passports and reference letters.

Supported payment gateways

2CheckoutPayPalPagueloFacilNOWPaymentsCheckout.com

Remote-friendly accounts

  • Towerbank

    Crypto-friendly bank that allows remote account opening with the assistance of a resident agent.

Panama incentives & advantages

Territorial Tax System Exemption

0% corporate and personal income tax on foreign-sourced earnings.

Civil Partnership (Sociedad Civil) formation steps

1

Step 1: Choose a unique name for the Sociedad Civil and verify its availability in the Panama Public Registry.

2

Step 2: Draft the Partnership Agreement (Pacto Social) detailing partner contributions, profit-sharing ratios, and management rules.

3

Step 3: Execute the Partnership Agreement before a Panamanian Notary Public to create a Public Deed (Escritura Pública).

4

Step 4: Register the Public Deed at the Panama Public Registry (Registro Público de Panamá).

5

Step 5: Pay the initial Annual Franchise Tax (Tasa Única) of $300 to activate the entity.

6

Step 6: Obtain a Tax Identification Number (RUC) from the Directorate General of Revenues (DGI).

7

Step 7: Register ultimate beneficial ownership (UBO) information in the Panamanian UBO registry through your resident agent.

8

Step 8: Obtain a Notice of Operation (Aviso de Operación) from the Ministry of Commerce if engaging in local commercial activities.

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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