Can I Open a Business in Panama? Let’s explore this question along with other pertinent points about starting a business in Panama.
Specifically, our discussion will revolve around the key points below:
- Who can start a business in Panama?
- How to open a company in Panama
- Panama business opportunities for foreigners
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Doing Business in Panama as a Foreigner
Who can start a business in Panama?
As long as they abide by local laws and regulations, anyone can open a business in Panama. Yes, that includes foreign nationals.
Setting up a business or obtaining local operating permits for a foreign corp does not require them to be citizens of the nation or be physically there.
Even though there are plenty of business prospects, some occupations are restricted for foreigners. For example, employment in retail and the media, among other professions, are prohibited.
How to open a company in Panama
The first step for opening a business in Panama is to select the structure that best meets your requirements.
There are various ways that business ownership might be arranged in Panama, such as sole ownership, Partnerships, and corporations.
An individual or family can own the whole company through sole ownership.
A partnership allows several people to work together in business. It might be broad, limited, or civil.
As an alternative, you can form a corporation, which needs two stockholders minimum, one of whom must be a Panamanian citizen or resident. In addition, corporations must continue to have a board of directors and issue shares.
Your company name must be reserved at the Public Registry before moving further with incorporation.
Next, prepare the Articles of Incorporation. It should bear the business name, address, goal, aggregate corporate capital, details of at least three directors, and name of the registered agent in the country.
After that, file the Articles of Incorporation with the Public Registry. Usually, it takes up to ten business days to complete this registration process.
For tax purposes, after the company is registered, get an identification number from the Panamanian tax department.
To handle the financial aspects of your firm, you will also need to register a business bank account.
Every company running a business in Panama has to have a municipal commercial authorization, which has to be prominently displayed at the location of the business.
All businesses doing business in Panama must have a Notice of Operations form. For taxation purposes, it is required to be visible at your place of business too.
You could require special permits depending on the type of business you are in before you can start operating.
Panama business opportunities for foreigners
Several burgeoning industries in Panama provide significant commercial potential.
The Panamian government said construction industry is growing rapidly, which is driving up demand for construction supplies and equipment. Significant building initiatives are in progress, including those involving public transportation.
As healthcare offerings grow, there is also an increasing need for medical supplies and devices.
The need for security systems to safeguard consumers and organizations is evolving as the world becomes more digitally connected.
The purchasing habits of Panamanian customers are frequently similar to those of Americans, with a particular interest for premium goods and services, as well as American brands.
Due to its liberalized trade policies and lack of capital outflow limitations, Panama has become a more desirable destination for international investment as a result of its WTO membership.
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