Partnership Limited by Shares 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
$60
Annual Fee
$300
Forming a Partnership Limited by Shares in Panama as a Amazon FBA & E-Commerce means a total tax burden of 25.0% and an official formation cost of $60. There is no minimum capital requirement. Standard formation takes 3-5 business days, or 1-2 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
≈ $1,235
Ongoing (per year)
≈ $600
Why Partnership Limited by Shares 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?
Partnership Limited by Shares formation requirements
Minimum capital
None
Standard timeline
3-5 business days
Expedited timeline
1-2 business days
Local director
Not required
Registered office
Virtual office allowed
Notarization
Required
Foreigners can act as general partners (who manage the company). A local resident agent (lawyer or law firm) is legally required.
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 providers of digital services without a permanent establishment in Panama are generally not required to register for ITBMS. However, B2B transactions may be subject to a reverse charge mechanism.
Banking & payments for Amazon FBA & E-Commerce
Opening a local bank account in Panama for a Sociedad en Comandita por Acciones can be challenging and time-consuming for non-residents. Banks require extensive KYC, proof of economic ties to Panama, and often an in-person visit, though some allow remote opening through legal representatives.
Supported payment gateways
Remote-friendly accounts
Payoneer
A popular digital alternative for Panamanian offshore entities to receive international B2B payments in USD.
Panama incentives & advantages
EMMA Regime (Manufacturing Services)
5% reduced corporate income tax rate, exemption from dividend tax, and import tax exemptions.
SEM Regime (Multinational Headquarters)
5% corporate tax rate, 0% dividend tax, and special visa categories for foreign executives.
Partnership Limited by Shares formation steps
Choose a company name including the suffix 'Sociedad en Comandita por Acciones' or 'S.C.A.' and verify availability in the Public Registry.
Draft the Articles of Incorporation (Pacto Social), specifying the general partners, limited partners, and share capital structure.
Notarize the Articles of Incorporation before a Panamanian Notary Public.
Register the notarized deed at the Public Registry of Panama (Registro Público).
Appoint a Resident Agent (a Panamanian lawyer or law firm), which is legally required for all entities.
Pay the initial Annual Franchise Tax (Tasa Única) of $300 to activate the entity.
Obtain a Notice of Operation (Aviso de Operación) if the company will conduct commercial activities within Panama.
Register with the Directorate General of Revenues (DGI) to obtain a Tax ID (RUC).
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 Partnership Limited by Shares guide
Taxes, requirements, banking, compliance
Partnership Limited by Shares cost calculator
One-time and annual cost breakdown
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