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Process to open a company in Panama from United States

Process to open a company in Panama from United States

Are you contemplating extending your business ventures to Panama? Renowned for its advantageous business climate, this Central American nation boasts a flourishing economy and a pivotal geographical position that appeals to a surge of new investors and entrepreneurs. Both locally and internationally, staying informed about the most recent updates in Panama’s business scene is an excellent initial step.

Additionally, it’s wise to outline the characteristics of the company you plan to establish in Panama, taking your specific requirements into account. Seeking legal counsel can be a prudent choice. Numerous specialists, like Legal Solutions Panama, stand out in this arena due to their extensive experience and expertise.

What are the requirements for establishing a company in Panama from United States?

If you’re an entrepreneur from United States and your upcoming objective is to set up your business in Panama, you’ll need to meet specific criteria established by the Panamanian Government. These requirements include:

  • A basic copy of the general passport for the directors, which should include three individuals, and for the shareholders, with a minimum of one.
  • Directors and shareholders must be at least 18 years old and hold a valid passport.
  • Fill out online forms with details about the company and its beneficiaries.

It is important to note that each of these requirements applies to both Panamanians and foreigners. However, if you are a foreigner and are currently outside of Panama, you do not need to travel to the country; you may designate your trusted lawyer or a representative to process your documents.

Step-by-Step Instructions for Launching a Company in Panama

After reviewing the above requirements in detail, it would be ideal for you to know some of the steps that could be useful during the process of opening your company in this country:

  1. Establish your company’s headquarters: Determine the location of your business or its legal and tax address, which serves as your company’s headquarters. Consider your financial and legal needs to decide whether the premises will be leased or owned, and choose a location that aligns with your requirements.
  2. Apply for the Notice of Operations: This requirement is linked to the first step. The Notice of Operations is one of the fundamental documents required by the Panamanian government from anyone looking to establish a company. To obtain this, your company must be registered with the Panamanian Public Registry.
  3. Register the corporation or legal entity: This functions as your company’s identity card in Panama. During registration, you need to submit a company name and identification card. Typically, this process takes between 5 to 7 days.
  4. Obtain the Single Taxpayer Registry: This is akin to a tax identification number provided to each taxpayer by the General Directorate of Revenue in Panama. Nowadays, various online methods are available to secure this document, and more detailed information can be found on government websites.
  5. Register with the Municipality of Panama (MUPA): This final step ensures your local registration is complete.

To finalize this registration, you will need to fulfill a set of requirements:

  • Copy of the Notice of Operations.
  • Copy of the ID card or passport of the legal representation in the notice of operations.
  • Sketch of the location of the commercial establishment.
  • It must include the township, urbanization, neighborhood, street, street number, number of premises or residences, building and number of apartment or commercial space, and at least 2 reference points.
  • Updated e-mail and phone numbers.
  • Copy of the income tax returns from the date of commencement of operation. If the business is from years before 2016, it is recommended to bring all income tax returns from the date of commencement of the notice.
  • Copy of the Articles of Incorporation and Certificate of Public Registry Panama, which must be updated and not older than 3 months.
  • As of January 2016, the sign becomes declarative based on the area, length by width, the dimensions must be presented in square meters at the moment of registration.
  • Copy of income tax returns from the date of commencement of operations.
  • Photos of the commercial premises, specifically the exterior front.

Tips for Starting Your Business in Panama as a Foreigner

Panama presents exclusive opportunities for entrepreneurs from United States thanks to its favorable environment. Being well-informed and carefully planning each step can significantly enhance your business’s likelihood of success. However, obtaining expert legal guidance is crucial, as it can streamline the process. In this context, Legal Solutions Panama might be your best choice.

With a team of expert lawyers specialized in this type of process, you’d have robust support in Panamanian legal matters, greatly simplifying the establishment of your start-up company. If you’re keen to learn more about the services offered by Legal Solutions Panama, feel free to visit their site and get in touch with them.

By Ava Martinez

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