Meydan
vs Panama.
Meydan versus Panama: onshore UAE vs offshore. Meydan costs more (USD 10,120 vs USD 5,800) but offers UAE substance, tax-treaty access (where applicable) and onshore credibility. Panama is cheaper, faster (2-5 days) and tax-neutral but has no UAE substance and limited treaty network. The right answer depends on whether the entity is operating or pure-holding.
Meydan vs Panama, line by line.
| Attribute | Meydan | Panama |
|---|---|---|
| All-in year 1 | USD 10,120 | USD 5,800 |
| All-in year 2 | USD 8,020 | USD 4,500 |
| Time to licence (working days) | 1 (Fawri instant) - 6 | 2-5 |
| Foreign ownership | 100% | 100% |
| Tax — qualifying / corporate | 0% qualifying / 9% above AED 375k | 0% foreign / 25% local |
| Physical office required | No | No |
| Annual audit required | No | No |
| Legal system | UAE civil law (federal) | Civil law (Spanish-derived) |
| Regulator | Meydan Free Zone (MBR City) | Public Registry of Panama |
| UAE double-tax treaty | n/a (UAE) | Yes (2013) |
| Resident director required | No | No |
All figures are year-one all-in for a single-shareholder, single-activity engagement unless noted. Pricing current as of May 2026.
Pick Meydan when —
- E-commerce
- Digital services
- Downtown postcode for client-facing brands
- You want lowest-cost option (all-in from USD 10,120)
- You need fastest licence issuance (1 (Fawri instant) - 6 working days)
- You can satisfy QFZP substance + de minimis tests for 0% tax
Pick Panama when —
- Latin american banking
- Territorial-tax holding
- Uae-dta-backed structures
- Real-estate ownership
- You want lowest-cost option (all-in from USD 5,800)
- You need fastest licence issuance (2-5 working days)
Common questions on Meydan vs Panama.
The questions UAE-resident founders most often ask before choosing between Meydan and Panama. Each answer is current to 2026.
Which is cheaper — Meydan or Panama?
Panama is cheaper in year one. Meydan all-in from USD 10,120; Panama all-in from USD 5,800. The roughly USD 4,320 gap is driven by government fees and (in UAE free-zone cases) office-lease requirements.
Which is faster to set up — Meydan or Panama?
Meydan typically issues a licence in 1 (Fawri instant) - 6 working days; Panama in 2-5 working days. Both are dependent on KYC clearance speed — submit complete documentation on day one to hit the lower end of either range.
What is the tax difference between Meydan and Panama?
Meydan: 0% qualifying / 9% above AED 375k. Panama: 0% foreign / 25% local. Effective tax position depends on substance, residency, treaty access and structuring.
Can a foreigner own 100% of a Meydan or Panama company?
Yes for both. Meydan: 100% foreign ownership. Panama: 100% foreign ownership. No UAE national partner or sponsor required.
Do Meydan and Panama require a physical office?
No — neither requires a physical office. Meydan accepts a flexi-desk or registered address; Panama accepts a flexi-desk or registered address. This materially lowers running cost compared to office-required free zones.
Which has easier UAE bank account opening — Meydan or Panama?
Both are bankable in the UAE. DMCC and DIFC entities tend to clear KYC fastest (3–6 weeks); IFZA, Meydan and offshore profiles take 4–8 weeks with more questions on flexi-desk-only setups. ArxSetup introduces UAE-resident clients to Mashreq Neo Biz, WIO, Emirates NBD and RAKBANK.
Which is better for my use case — Meydan or Panama?
Meydan suits e-commerce, digital services, Downtown postcode for client-facing brands. Panama suits Latin American banking, territorial-tax holding, UAE-DTA-backed structures. The right answer depends on customer location, banking needs, tax position and operating substance — book a structuring call for a written recommendation.
Meydan or Panama? A written answer.
We can produce a structured comparison memo for your specific facts — customer geography, banking needs, tax position, substance — and recommend a jurisdiction with reasoning, in writing.