Situated in Central America, Panama is one of the most popular nations for businesspeople looking to move their corporations abroad as a home for offshore activity. However, Panama also has numerous benefits for those who are looking to establish an entirely new company within its borders, such as a stable government and low cost of living, and in today’s article we will be guiding you through the process step by step, allowing you to decide if this is the perfect next step in your career path.
While it is easy to say that the last year has presented challenges the likes of which we have never really experienced in our lifetimes until this point, it is important to, in the wake of the COVID-19 pandemic, recognise areas of opportunity and hope from which we can build upon to become stronger as a global community in the future. One way in which this can be done is through reinforcing international relations in the form of trade and business so setting up a business in Panama not only helps achieve this, but also has many benefits for you as the business owner as well.
There are 3 types of business entity that can be set up
1. Corporation
Most popular kind of company registration for both Panamanian nationals and foreigners
2. LLC
Has the structure of a Panamanian corporation and a partnership. Business can take place both within the nation and also overseas
3. Private Fund
High confidentiality which protects monetary assets from abroad. It is a legal entity with beneficiaries, but activities are not permitted to be conducted in the same way as the other two mentioned above
It is clear that there is an abundance of choice in Panama for businesspeople looking to register a corporation, presenting the country as having the potential to become a hub for localised and international commerce in the region in years to come, and below we will outline the steps to open one of the aforementioned business types.
Steps to follow when registering a corporation in Panama
1. Organise documents
Make copies of identification forms, such as passport photocopies to present if and when necessary during the registration process
2. Income Tax Registry
Register business with Panama Revenue Service in order to receive a tax ID number
3. Commercial License
After application, attendance at the Ministry of Commerce and Industry will allow you to collect it
4. Municipal Taxes
Once you have completed the above steps, you must register with the municipality where you will undertake business in order to pay municipal taxes
5. Social Security Number
Patronal de la Caja de Seguro Social, CSS. This is the place where you have to register for a social security number for you personally, and also one for the business
6. Sanitary Permit
If you are opening a business in the catering industry or dealing with consumable products, a visit to the Ministry of Health is necessary in order to receive this
7. Fumigation Certificate
Every four months premises must be fumigated, and you must show the receipt of this in the local municipality as proof
Having established these steps, it is important to mention that they are as individually important as they are collectively. This is to say that if you are registering a corporation in Panama, none of the above can be overlooked, and in fact, the process is rather easy and does not take a long time, roughly 5 days, making Panama an ideal option for rapid corporation registration.
So, if you are interested in expanding into Panama or establishing a new corporation altogether, please do not hesitate in getting in touch with us today. At Creimerman, we take great pride in assisting our clients with helping make their cross-border ventures a success, and we would like you to be the next.