Limited Partnership (Sociedad en Comandita Simple) in Panama — Coaching & Mentoring Formation Guide
Choose a jurisdiction with strong privacy laws and easy access to global payment gateways like Stripe or PayPal. Since your business relies on personal branding, consider a US LLC or UK LTD to project international authority.
Last verified: June 13, 2026
Corporate Tax
25.0%
State Tax
0.0%
Formation Cost
$350
Annual Fee
$300
Forming a Limited Partnership (Sociedad en Comandita Simple) in Panama as a Coaching & Mentoring means a total tax burden of 25.0% and an official formation cost of $350. 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
≈ $1,390
Ongoing (per year)
≈ $650
Why Limited Partnership (Sociedad en Comandita Simple) for Coaching & Mentoring?
A business model focused on providing expert guidance, personal development, and strategic advice to individuals or organizations. Coaches and mentors typically operate online, requiring minimal physical infrastructure but high credibility and seamless international payment processing.
Ideal for
- Executive coaches
- Life and wellness coaches
- Business mentors
- Career advisors
Challenges to watch
- Managing cross-border VAT/sales tax for digital services
- Handling international client payments and currency conversion
- Protecting intellectual property and coaching frameworks
- Establishing trust and credibility in a crowded market
Key decision criteria
- Access to global payment processors (Stripe, PayPal)
- Professional liability insurance requirements
- Data protection regulations (GDPR) for client records
- Tax treaties to avoid double taxation on foreign income
Limited Partnership (Sociedad en Comandita Simple) 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
A local director is not required, but the partnership must appoint a Resident Agent (a Panamanian lawyer or law firm).
Estimated breakdown (based on avg. $65,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 7%. Registration threshold: 36,000 USD. Foreign providers of digital services are generally required to register and collect the 7% ITBMS if their services are consumed in Panama. Non-resident businesses without a permanent establishment may face reverse-charge mechanisms for B2B sales.
Banking & payments for Coaching & Mentoring
Opening a local corporate bank account in Panama as a non-resident can be rigorous, typically requiring extensive KYC, proof of economic ties, and an in-person visit. However, using international fintechs or specialized offshore banks can streamline the process for remote founders.
Supported payment gateways
Remote-friendly accounts
Payoneer
A global fintech platform that supports Panamanian entities for receiving international B2B payments.
MultiPass
A UK-based EMI that provides multi-currency accounts for offshore entities, including Panama.
Panama incentives & advantages
Territorial Tax System
0% corporate and personal income tax on all foreign-sourced revenue.
Special Economic Zones (e.g., Panama Pacifico)
Exemptions from corporate income tax, import duties, and dividend taxes, plus expedited visa processing for foreign workers.
Limited Partnership (Sociedad en Comandita Simple) formation steps
Choose and verify the availability of the partnership name at the Public Registry of Panama.
Draft the Partnership Agreement (Pacto Social) detailing the general and limited partners, capital contributions, and management rules.
Notarize the Partnership Agreement before a Panamanian Notary Public to create a Public Deed (Escritura Pública).
Register the Public Deed at the Mercantile Section of the Public Registry of Panama.
Pay the initial Annual Franchise Tax (Tasa Única) of $300 to activate the entity.
Obtain a Tax Identification Number (RUC) from the Directorate General of Revenue (DGI).
Apply for a Notice of Operation (Aviso de Operación) through the PanamaEmprende portal if conducting commercial activities locally.
Coaching & Mentoring FAQ
Do I need a company to start coaching?
While you can start as a sole proprietor, forming an LLC or LTD protects your personal assets from liability and makes it easier to open business bank accounts and access global payment gateways.
Which country is best for an online coaching business?
The US (e.g., Wyoming or Delaware LLC) and the UK are highly popular due to low setup costs, global recognition, and seamless integration with major payment processors.
How does VAT apply to my coaching services?
If you provide live 1-on-1 coaching, it is often taxed where the service is performed or where the client is located, depending on local laws. Pre-recorded courses may be subject to digital services VAT rules.
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Related guides
Complete Limited Partnership (Sociedad en Comandita Simple) guide
Taxes, requirements, banking, compliance
Limited Partnership (Sociedad en Comandita Simple) cost calculator
One-time and annual cost breakdown
🇧🇬 Coaching & Mentoring — Single-Member Limited Liability Company (EOOD)
Tax 10.0% · formation $30
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Tax 0.0% · formation $100
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