The Panamanian government has initiated a sweeping administrative process to dissolve more than 290,000 suspended corporations and foundations. The Ministry of Economy and Finance (MEF) will start the unprecedented action on February 27, 2026, targeting entities that have failed to comply with fiscal obligations for over a decade.
This large-scale dissolution aims to purge the national corporate registry and strengthen legal and financial system integrity. Officials describe the move as critical for meeting both domestic law and Panama’s international commitments on transparency and financial compliance.
Phased Implementation Targets Non-Compliant Entities
The dissolution process will unfold in two distinct phases, according to the ministry’s detailed plan. The first phase focuses on legal entities that have carried a dissolution notation for non-payment of the annual franchise tax for more than ten years, specifically since 2016. This action is authorized under Article 318-A of Panama’s Fiscal Code.
Initial proceedings will concentrate on a first block of 180,883 societies whose information has been properly verified and homologated. The entire first phase involves executing administrative resolutions issued by Panama’s General Directorate of Revenue (DGI) back in 2016, which originally ordered the dissolution notation for 290,534 legal persons.
“This initiative seeks to cleanse the national corporate registry and reinforce standards of transparency and regulatory compliance within the country’s economic and corporate environment,” stated the Ministry of Economy and Finance. [Translated from Spanish]
A second phase will later address other societies with a suspended status in the Public Registry. The legal framework for both stages stems from modifications introduced by Law 52 of 2016 and Law 254 of 2021. The government promises a staggered, controlled, and progressive rollout to ensure orderly administration.
Transparency and International Compliance as Core Goals
Panamanian authorities frame this massive administrative action as part of broader state efforts to bolster corporate transparency. Improving the quality of the business registry and reinforcing international trust in the Panamanian financial system are stated primary objectives. These elements are considered key for economic competitiveness and international cooperation.
The Public Registry of Panama will host a direct access portal on its website. This portal will allow citizens to consult the list of included societies and track updates related to the corresponding regulatory framework. The MEF emphasized its commitment to keeping the public informed about the process’s advances.
Defining a legal person (juridical person) broadly, the process encompasses suspended corporations, companies, and associations. The cleanup targets entities that have essentially been inactive in the regulatory and fiscal sense for an extended period, creating a distorted picture of Panama’s active corporate landscape.
“This measure reaffirms the country’s commitment to compliance with the law and to national and international cooperation,” the MEF said in its official announcement. [Translated from Spanish]
The action aligns with ongoing governmental campaigns to enhance legal and fiscal order. It follows other administrative efforts, as part of a wider strategy to strengthen institutional integrity. The Ministry of Economy and Finance (Panama) is leading the cross-agency initiative.
By systematically removing long-dormant and non-compliant entities from its official registry, Panama aims to present a more accurate and reliable corporate environment to global partners and investors. The success of this complex dissolution project could significantly impact the nation’s financial reputation and its standing in international anti-money laundering and transparency evaluations.