It is important to mention that Panama’s economy depends on foreign investment, for that reason its regulations are focused on encouraging the entry of foreign investment; therefore, entrepreneurs who settle in the country have the opportunity to expand in the region. This makes Panama an ideal country to start a business.

Company Structure in Panama

A massive benefit that this jurisdiction has over various countries is how fast a company can be created in Panama. Companies in Panama are established usually within five to seven business days approximately.

As a founder, you must choose which will be the legal structure of your new company and define how many partners will be included, consider the following:

• Natural Person: This structure allows only one investor, who is the person who provides the capital and is the owner of the business who is identified with an ID card.

• Legal Entity: This structure defines an organization that is conformed by several investors and must have legal approval. These companies must be registered in the Public Registry along with the partners of the company and indicate the investment of each one. These types of companies are represented by shareholders or partners of the company and have the legal capacity to act, in addition, to having obligations within the performance of the company.

Types of Companies in Panama

If you want to form a company in Panama, you have to learn what company type best suits your business needs. These are some of the most popular types of companies in Panama:

• General Partnership (“Sociedad Colectiva General”): Here the partners are jointly and unlimitedly liable for the corporate operations, therefore, even if only one of them has made a mistake to the detriment of the partnership, this would imply that all the partners could be sued. The name is usually accompanied by the phrase «Y compañía», «Y hermanos», «E hijos» or similar, including abbreviations.

• Limited Company (“Sociedad Colectiva Limitada”): It is known as a Limited Liability Company (Similar to an LLC in the United States) and can have between 2 and 20 partners who must be registered in the Public Registry Office; they can be natural or legal persons. The share capital is integrated by the contributions of the partners and can be in any currency. The denomination is free to choose, but «Sociedad de Responsabilidad Limitada» or its abbreviation «SRL» must be added.

• Limited Partnership (“Sociedad en Comandita Simple”): It works as a hybrid between the general partnership and the joint-stock company, here coexists between partners who contribute work («comanditados», have joint and unlimited liability for the obligations of the company) and general partners who contribute capital but do not participate in the management («comanditarios», limited to the capital contributed by each partner). Its name includes «Sociedad en Comandita» or its abbreviation «S. en C» or «S.Com.»

• Limited Partnership by Shares (“Sociedad en Comandita por Acciones”): It is a company whose capital is divided into shares corresponding to the contributions of the partners. One of the partners is in charge of the administration of the company and is responsible for the obligations of the company, the rest of the partners don’t share this responsibility. Liability is divided in the same way as in the Limited Partnership: «Comanditarios» and «Comanditados». Its name includes «Sociedad en Comandita por Acciones» or its abbreviation «S.Com. p.A.» or «S.C.A.».

• Stock Company (“Sociedad Anónima”): This type of company is the most used in Panama, more than 90% of the companies have been created under this structure, this is due to the tax benefits granted to them. Its capital stock is based on the economic contributions of all its partners and is divided into shares. It is necessary to be composed of two or more persons of any nationality; they don’t need to be domiciled in Panama.

• Foreign Corporation (“Sociedad Anónima Extranjera”): One of the benefits of the Panamanian legislation is that it can validate those foreign corporations, registering some documents in the Public Registry Office, among the documents requested:

• Articles of Incorporation translated into Spanish and legalized before a notary public

• Minutes of the Board of Directors authorizing registration in Panama

• Copy of the last financial statements

• Certificate from the Panamanian Consul certifying that the organization of the company has been established according to the law of the place where it has been subscribed.

• Evidence of the notification of the capital transfer of the operation in Panama.

• Individual Limited Liability Companies (“Empresas Individuales de Responsabilidad Limitada”): This company is an option for the sole owner, such person transfers the assets of the business and the civil liability is limited to the number of assets transferred.

1. Choose the right type of company and structure

   The first step is to select the right structure for your business. In Panama, there are several different types of companies to choose from. It is important to learn about the pros and cons of each, as well as which is the best structure to fulfill all business needs. Consider that a “Stock Company” is the most common company type.

2. Register your company at the Panamian Public Registry

   In order to register your company at the Panamian Public Registry, you need to draft the company’s bylaws with all the required information and documents.

   • Company name

   • Legal Representative information

   • Share capital information

   • Company activities

   • Registered/ Legal address

   • Management structure

   • Extinction and liquidation details

   • Other general dispositions

   All these documents have to be notarized at a public notary and then submitted to the Panamian Public Registry for their revision and final approval.

3. Obtain your Tax ID or RUC in Panama

   When you set up your company in Panama, you must carry out the corresponding procedure to obtain its “RUC – Registro Único del Contribuyente” (Taxpayer Registry).

   This procedure is carried out through the website of the Dirección General de Ingresos (General Revenue Directorate). Once you have filled in all the requested data, your application will be verified, and once accepted, you will be given your tax identification number, either natural or legal person.

4. Panama Commercial Operation Permit

   Another important step to consider is the Operation Permit, which is a process requested by the Panamanian Government to both natural and legal persons in order to undertake a commercial activity within the country.

   The activity to be undertaken must be duly reported to the Public Administration together with an affidavit declaring to have complied with all the regulations covering the activity.

   In order to request the Operation Permit, the registration of the company in the Panamanian Public Registry must be done in advance.

5. Open a Corporate Bank Account

   Finally, visit a local bank to open your corporate bank account. It is advised to research the banks ahead of time so you know the rates, the benefits, and what documents to take with you when visiting.

Get Assistance from Easyco Experts

Panama is a great country to start your business, having a successful economy, ease of entry, tax benefits, and a business-friendly environment. Our experts can help you register your company in Panama and assist with the formalities and compliance along the process.

Easyco also provides additional services to guarantee your company compliance, which include:

• Appointment of a Resident Agent in Panama

• Appointment of nominee directors for your company in Panama

• Providing a Registered Office Address in Panama

• Providing secretarial maintenance support in Panama

• Handling tax and accounting when required

• Hassle-free Payroll Services

• Recruiting and Hiring Talent

• Assist with your Company Bank Account opening in Panama

• Manage your Trademark Registration in Panama

• Corporate Legal Services in Panama

At Easyco, we make company formation in Panama easy; our team of corporate experts has vast experience helping companies and individuals register their business in Panama, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Panama today!

The post How to Establish a Company in Panama: Company Formation Panama appeared first on EasyCo.

What are the benefits of registering a trademark in Panama?

Registering a trademark in Panama offers several benefits for businesses. Firstly, it provides legal protection for your brand identity, preventing others from using your name or logo without your permission. This protection can help you to build and maintain brand recognition, which is crucial for attracting and retaining customers. Additionally, registering a trademark can help you to establish ownership of your brand and prevent others from infringing on your intellectual property rights. This can be particularly important if you plan to expand your business into other countries or are concerned about counterfeit products. Overall, registering a trademark in Panama is an important step in protecting your business and ensuring its long-term success.

How to register a trademark in Panama?

Step 1: Conduct a Trademark Search

Before you start the registration process, it’s important to ensure that your trademark is available for registration in Panama. This involves conducting a trademark search to verify that there are no existing trademarks that could conflict with your application. You can conduct a search online at the website of the Panama Intellectual Property Office (DIGERPI).

Step 2: Prepare Your Application

Once you’ve verified that your trademark is available, it’s time to prepare your application. The application must include a clear representation of your trademark, as well as a list of goods and services that your trademark will cover. It’s important to be as specific as possible when describing the goods and services. This ensures that your trademark is protected for the intended use.

Step 3: Submit Your Application

You can submit your trademark application online via the DIGERPI website or in person at their office in Panama City. It’s important to note that a filing fee will be required, and the amount will depend on the number of classes of goods and services your trademark will cover. Once your application is submitted, it will be examined by the DIGERPI to ensure that it meets all the requirements.

Step 4: Wait for Examination and Publication

After submitting your application, you’ll need to wait for the DIGERPI to examine and publish it. During the examination, the DIGERPI will verify that your trademark meets all the legal requirements for registration. If there are any issues or objections, they will notify you and provide an opportunity to address them. Once your trademark is accepted, it will be published in the Official Gazette of Panama.

Step 5: Complete the Registration Process

Once your trademark is published, there is a 30-day period during which anyone can oppose your trademark registration. If there are no oppositions, your trademark will be registered, and you’ll receive a registration certificate. This certificate is proof of your ownership of the trademark. It also gives you the right to use the trademark for the goods and services listed in your application.

What is the DIGERPI?

The DIGERPI, or ‘Dirección General de Propiedad Industrial’, is the government agency in charge of intellectual property matters in Panama. It is responsible for processing trademark applications, conducting examinations, and issuing trademark registrations. The DIGERPI is also responsible for enforcing intellectual property laws in Panama and provides guidance and support to businesses seeking to protect their intellectual property rights. By working with the DIGERPI, businesses can ensure that their trademarks are properly registered and protected under Panamanian law.

Registering a trademark in Panama is an essential step in protecting your brand identity and preventing others from using your name or logo without permission. By following these steps, you can ensure that your trademark is registered and protected under Panama law. If you have any questions or need assistance with the trademark registration process, it’s recommended that you seek the advice of a qualified intellectual property attorney in Panama.

Get Assistance from Easyco Experts!

Panama is the perfect country to register your trademark and boost your business! To make sure you register your trademark in the right way, you can get in touch with us. Our team of experts will ensure your trademark registration process complies with all Panamanian laws.

At Easyco, we make company formation in Panama easy. Our corporate experts have vast experience helping companies and individuals register their businesses in Panama. We have a proven track record of success across all our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by providing an easy online company registration experience. Start your company in Panama today!

Furthermore, Easyco also provides additional services to guarantee your company’s compliance. In summary, they include:

• Appointment of legal representation,
• Providing a registered office address
• Handling tax and accounting
• Hassle-free Payroll Services
• Manage your company bank account opening
• Manage your Trademark Registration
• Recruiting and Hiring Talent

The post How to Register a Trademark in Panama? appeared first on EasyCo.

Step 1: Determine your eligibility

To obtain a TIN in Panama, you must first determine your eligibility. Individuals who are residents of Panama, have a work permit, or have Panamanian income are eligible to apply for a TIN. For companies, you must have a legal entity in Panama and be registered with the Panama Public Registry.

Step 2: Gather the required documents

Once you’ve determined your eligibility, you’ll need to gather the required documents. For individuals, you’ll need a copy of your passport, a utility bill to prove your residency, and a work permit if you have one. For companies, you’ll need to provide a copy of your business registration documents, along with any relevant licenses or permits.

Step 3: Submit your application

You can submit your TIN application in person at any of the regional offices of the National Directorate of Revenue (DGI) or online through the DGI’s website. The application process is straightforward, and you’ll need to provide your personal or company information, along with the required documents.

Step 4: Wait for your TIN

Once you’ve submitted your application, you’ll need to wait for your TIN to be processed. The processing time can vary, but it usually takes a few days to a week. Once you receive your TIN, it will be valid for the duration of your stay in Panama.

Benefits of Having a Tax ID in Panama

1. Facilitates tax compliance: With a TIN, you can easily comply with tax obligations, such as filing tax returns and paying taxes.
2. Opens up business opportunities: Having a TIN allows you to conduct business legally in Panama, including buying or selling property, opening a bank account, and applying for a loan.
3. Helps build credit: With a TIN, you can establish credit and build a credit history in Panama. This can help you access to credit and financing options in the future.

Obtaining a TIN in Panama is an essential step if you’re planning to do business or invest in the country. By following the steps outlined in this article, you can easily obtain a TIN and enjoy the benefits it offers. Whether you’re an individual or a company, having a TIN in Panama can make your financial and business dealings in the country easier and more straightforward.

How to Register a Company in Panama?

1. Choose the right type of company or legal structure
2. Register the company at the Panamian Public Registry
3. Obtain a Tax ID or RUC Number
4. Obtain the required Operation Permit
5. Open a Corporate Bank Account

Get Assistance from Easyco Experts!

Would you like assistance to obtain a Tax ID in Panama? Send us a message and we will send you all the information you need to know, as well as help and assess you. Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Appointment of legal representation

• Providing a registered office address
• Handling tax and accounting
• Hassle-free Payroll Services
• Manage your Company bank account opening
• Manage your Trademark Registration
• Recruiting and Hiring Talent
• Corporate Legal Services

The post What is the Tax ID in Panama? Benefits | How to Obtain It appeared first on EasyCo.

Panama receives a great deal of attention due to its business-friendly tax policies and its buzzing financial sectors. These sectors can offer numerous benefits to investors and entrepreneurs who want to take advantage of the country’s friendly policies toward trade and business. 

Panama is also highly stable when it comes to politics. As a result, the economy of the country is growing and is considered one of the most fruitful countries for international trade in Latin America. All of this is on top of providing a low VAT (value-added tax) of 7%.

To set up a company in Panama, make sure you choose the right type of entity that suits your needs. This is a vital part of the process because your business will have to comply with all restrictions and regulations in accordance with the entity type.

In this article, we have compiled a list of the most common types of companies in Panama.

1. Limited Liability Company

The Limited liability company is one of the most common types of companies in Panama. It is also known as “Sociedad De Responsabilidad Limitada.”

To form a Limited Liability Company in Panama, there are some specific requirements that you must follow. Consider that the incorporation of a Limited Liability company in Panama is very fast, and it can be completed in approximately 1-2 weeks.

If you are an entrepreneur looking to set up a business in Panama, a Limited Liability company might be the right option for you as this type of entity separates liability. In an LLC, owners are not personally liable for the company’s debt or liabilities.

Here are some of the principal requirements for the formation of a Limited Liability company in Panama.

1.         Must have at least one administrative member.

2.         Just like a corporation, there must be a president, a secretary, and a treasurer.

3.         Must have an appointed legal representative.

4.         Must appoint a resident agent (a lawyer from Panama).

5.         Must fill in tax declarations.

6.         Company registered address registration.

7.         Public registry payments annually.

8.         A minimum of two shareholders.

2. Corporation or Stock Company

Corporations are also one of the most common types of companies in Panama. A corporation in Panama is required to go through a legal process referred to as «incorporation». This is the process where all the documentation of the primary purpose of the business, the location, the name, and information regarding the shares and stocks are drafted. As with an LLC, a Corporation registration in Panama is very fast, and it can be completed in approximately 1-2 weeks.

The corporation, also known as a Stock company or “Sociedad Anónima” must have at least one shareholder at the time of the incorporation. This incorporation process offers the company a unique feature that provides protection to the owners against any sort of liability in the event of a legal issue. It is also the main structure for offshore companies, which can also be beneficial when considering a legal structure to hold your offshore interests. This company type is also preferred for anonymity, as nominee directors are also accepted, meaning that your personal information at the level of the Panamanian registries can remain anonymous.

One key thing to note is that even though there is no legislation for the minimum share capital of the company in Panama, a minimum of 10,000 USD is highly advised. Although this share capital does not have to be paid in, which is also a benefit for entrepreneurs or businesses that are looking for low financial barriers to entry.

Some of the other requirement of a corporation is as follows,

1.         Must have a board with directors with a minimum of three directors (Nominee directors from a local provider can also be an option).

2.         Must have three designated members: a president, a treasurer, and a secretary.

3.         Must have a legal representative of the company.

4.         Must appoint a resident agent (a lawyer from Panama).

5.         Company registered address registration.

6.         Public registry payments annually.

7.         Must fill tax declarations, mandatory if your company has operated within Panamanian borders.

3. Sole Proprietorship

If you want to run a small business in Panama, then one of the most common go-to solutions is the sole proprietorship. This is an unincorporated business, where the owners have to pay personal income tax out of their own pockets.

This is the most simple and easiest type of business to set up in Panama. In this type of entity, the owner gets to run the business in both their name and an individual name for the business.

Some of the key benefits of a sole proprietorship are:

1.         Comparatively inexpensive.

2.         Very few governmental regulations.

3.         Unlike a corporation, the need to pay tax is only once. As there is no entity of the business, there is no need to pay any income tax.

4. Private Interest Foundation

Known in Spanish as «Fundación de Interes Privado», the Private Interest Foundation type of entity offers unique legal advantages.

The setup process of a Private Interest Foundation can take up to 3 weeks or more, but the advantage is that the offers in return can overweight any hurdles of the process. For instance, the entities of “Fundación de Interes Privado” will be exempt from any kind of taxes and payments in Panama, although some exceptions may apply.

Listed below are some of the characteristics of a Private Interest Foundation:

1.         It is not required to issue shares.

2.         Needs one beneficiary and one protectorate from the founding council.

3.         Has no obligatory capital requirement, but a minimum of $50,000 is recommended.

4.         Must have a Registered Office Address.

5.         Free from any judicial orders on confiscation of assets.

6.         Must have a bank account.

7.         One must state the purpose of the business and whether the period of time for the company is definite or indefinite.

Start your business in Panama with Easyco

If you are looking to start a business in Panama, our company experts can help you register your company in Panama and assist with the formalities and compliance along the process.

Easyco also provides additional services to guarantee your company’s compliance, which include:

• Nominee directors in Panama

• Registered office address in Panama

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening in Panama

• Panama’s Friendly Nations Visa coordination and assistance

• Manage your Trademark Registration in Panama

• Corporate Legal Services

At Easyco, we make company formation in Panama easy; our team of corporate experts has vast experience helping companies and individuals register their business in Panama, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Panama today!

The post Most Common Types of Companies in Panama appeared first on EasyCo.

Company founders globally have all heard about Panama. But many do not know why it is such an interesting jurisdiction for many businesses. In this article, you will learn about Panama and why this country might be the ideal place for you and your company.

Panama is a country that has been known for many years as one of the most stable economies in Central America, it has a stable government with a U.S. dollar-pegged economy, reducing greatly exchange rate risks. Panama has made efforts to systematize the procedures for setting up businesses since 2005; therefore, it has managed to optimize fiscal and commercial processes and procedures. The Panamanian government offers tax incentives thanks to its flexible policy that seeks to attract foreign capital and among its main sources of economic activity, you can find a well-developed services sector that accounts for more than three-quarters of GDP. Panama’s services include the Panama Canal, logistics, the Colon Free Trade Zone, insurance, tourism, and banking; especially due to the appeal of offshore banking. These sectors along with trade agreements and infrastructure development projects have boosted economic growth.

Let’s dig deeper and see why Panama is a great place for business.

1. It is Easy to Start a Business in Panama

To put it simply, Panama is one of the easiest countries to get started with a business. The Ease of Doing Business Index, ranked Panama second in the region of Latin America and the Caribbean for the benchmark of ‘Starting a Business. This benchmark gathers the procedures, time, cost, and minimum capital to open a new business. Registering a company in Panama can be completed within a week’s time, this is key when trying to start a company operating within a short time span. This saves founders considerable time, especially compared to other countries within the region, where the company setup can take months.

You can also learn more about how to register a company in Panama here.

2. Panama is a Commercial Hub

Another reason why Panama is a very good option for you to invest in and expand in the region is that it is considered a Logistics Hub due to its strategic location, with ports and high technology airports, which generate a logistics interconnection system. Also, Panama has the advantage of using a multimodal transport system that allows using at least two modes of transport, so it provides options for planning the transportation of cargo and therefore reducing travel times, loading and unloading.

Moreover, this well-implemented system allows for improved logistics coordination with lower costs in its operations.

3. Panama Canal

The Panama Canal is considered a base for business as it is fundamental for global trade and represents 10% of Panama’s GDP. In 2020 the Panama canal had a revenue equivalent to 3.4 billion dollars. It is a key point for the transit of merchandise because it connects two oceans and all continents, which facilitates world maritime trade.

Future growth will be strengthened by the Panama Canal expansion project that began in 2007 and was completed in 2016 at a cost of $5.3 billion. The expansion project more than doubled the Canal’s capacity, enabling it to accommodate high-capacity vessels such as tankers and neo-Panamax vessels that are too large to traverse the existing canal. The US and China are the top users of the Canal.

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4. Panama has Incentives for Foreign Investment

Panama constantly seeks to generate greater incentives to attract foreign investment, for that reason the law grants foreigners the same rights and freedom enjoyed by nationals. It should be noted that such foreign investors are also granted the right to manage their investment earnings as they prefer and to repatriate their interests, profits, and dividends.

• Incentives for Multinational Companies:

  • Exemption from the payment of Income Tax for companies established in Panama but generating foreign source income, outside national territory.

  • Total exemption of the payment of the Tax of Transfer of Movable Goods and Services applies to the operations that are carried out outside the national territory.

  • Exemption from import duties.

  • Migratory benefits such as obtaining an SEM Permanent Personnel Visa or SEM Temporary Personnel Visa for those foreign workers who work in the branches or subsidiaries in Panama. (*)

  • Labor Benefits: These benefits are granted in compliance with the rule of 10% for foreign workers and 90% for national workers.

(*) SEM: Sede de Empresas Multinacionales (Headquarters of Multinational Companies)

• Colon Free Zone

This is a free port that has more than 2,500 companies. There are national and foreign companies in the zone and most of them enjoy tax exemption, but they must meet certain requirements such as having at least five local Panamanian workers, submitting reports, and exporting at least 60% of their merchandise.

• Special, Integral, and Simplified Regime for Free Trade Zones

Thanks to this law, duty-free zones are allowed to be established anywhere in Panama, as long as they don’t interfere with the local ecosystem. Approximately fourteen free zones have been calculated so far, while nine of them are already in operation.

5. Real Estate Investment in Panama

If you are interested in investing in Panama, one sector that stands out is real estate, the interest here is based on selling or renting the property in which you have invested. This industry works with long-term investment and is focused on the value that the property acquires over time.

It is a dynamic sector, which not only depends on the construction itself but also on the projects that are carried out in the surrounding area, as this increases its value. It can be considered a buyer’s market where you can get great deals and at the same time get a significant return on your investment.

6. Panama’s Friendly Nations Visa

The Friendly Nations visa has been considered a fast-track way to obtain residency in Panama, applicable for 53 countries (2021 update) considered friendly to Panama. As of 2021, there have been new changes to how this process works, it is important to take into consideration the following:

• First, the provisional residence is granted for a period of two years. After which the individual can apply for a permanent residence permit

• The process for applying for a permanent residence permit has to be for employment reasons or for real state investment reasons.

  • Employment: The Employer has to submit documentation in relation to the nature of the employment. Afterward, the applicant and the employer will have to process the work permit before the Ministry of Labor and Labor Development.

  • Real estate: The applicant has to demonstrate the ownership of real estate of a minimum value of US$200,000.00. It is important to consider that a local bank may assist with the acquisition of said real estate investment.

Get Assistance from Easyco Experts

If you are looking to start a business in Panama, our company experts can help you register your company in Panama and assist with the formalities and compliance along the process.

Easyco also provides additional services to guarantee your company’s compliance, which includes:

• Nominee directors in Panama

• Registered office address in Panama

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening in Panama

• Panama’s Friendly Nations Visa coordination and assistance

• Manage your Trademark Registration

• Corporate Legal Services

At Easyco, we make company formation in Panama easy; our team of corporate experts has vast experience helping companies and individuals register their business in Panama, with a proven track record of success across all of our services. Easy aims to tackle the complex company formation processes across LATAM and makes business registration easy by providing a hassle-free online company registration experience. Start your company in Panama today!

The post Doing business in Panama: Why do business in Panama? appeared first on EasyCo.

However, Panama not only offers attractive benefits for companies but also offers opportunities for professionals and investors looking to start working there. In the last years, Panama has been promoting immigration and work for foreigners, as well as creating alliances with other neighboring countries to facilitate mobility in the region.

If you’re interested in moving to Panama to work, or already have a job proposal, you’re going to need a Work Visa or Work Permit.

On the other side, if you’re an Investor, you can easily apply to the Panama Qualified Investors Immigration Program, which grants permanent residency to you and your dependent family, also allowing them to work, study, and access Panamian facilities. Furthermore, also gives you the opportunity to obtain Citizenship after 5 years of continuous residence.

What are the requirements to obtain a Work Permit in Panama?

To obtain a Work Permit or Work Visa in Panama, you’ll need to present these documents to the Ministry of Work and Labor. It is advised that you work closely with a local lawyer or attorney to guide you in the process and/or act on your behalf in case you’re not in Panama at the moment of the application.

• You must have a valid passport with an expiration date no less than 6 months from the intended stay in Panama

• A copy of your passport

• Completed Visa Application Form

• Four recent passport photos

• A valid employment contract with a company in Panama

• Letter of responsibility provided by the company hiring you

• Documents with information about the accommodation in Panama

• Depending on the job you’re being hired to do, you’ll need a Certificate of Studies or a Certificate of Professional Experience

Do I need to have a Resident Visa to be able to work?

Yes, you need to have a valid Residency Visa in Panama to obtain a Work Permit. This can either be temporary or permanent, depending on how long your work contract is for and how long you’re planning to stay in the country.

If you don’t have a Residency Visa you’ll have to apply for one. The process usually takes around 6 months to be completed. However, if you’re part of the “50 Panama-friendly nations” the process is faster and can take from 1 to 2 months.

How long is the Application Process?

If you already have a residency in Panama, the process to obtain a work permit must be done only at the Ministry of Work and Labor. However, if you don’t have a valid residency yet, you must apply for one at the National Immigration Service.

The application process to obtain a Work Permit in Panama can take from 1 to 3 months. Once approved, you will receive an Identification Card that proves you’re allowed to work in the country.

What is the Panama Qualified Investment Immigration Program?

The Panama Qualified Investment Immigration Visa is a program that allows applicants from all over the world to get fast access to permanent residency in Panama by investing in real estate, securities, or funds in Panama for a minimum period of 5 years. After this time, it is possible to apply for naturalization and obtain Panamanian citizenship. However, due to alliances, some Latin American countries can apply for citizenship after 3 years.

Benefits

• It gives you and your dependent family permanent residence in Panama

• You can take your family with you as long as they financially depend on you: 1 spouse, 2 children under the age of 18 (unmarried), 3 children with ages between 18 and 25 years old (unmarried)

• Opportunity to apply for Panamian citizenship after 5 years

• You and your dependents will be able to work, live, and study in Panama. Additionally, you will have access to all the Panamian health and welfare services

Types of Investment

The applicant must choose one of the 3 types of investment in order to qualify for this type of Visa:

• Real Estate: At least USD 300,000 (USD 500,000 since October 2022) in properties in Panama for a minimum of 5 years

• Securities: A minimum investment of USD 500,000 in any kind of Panamian Securities (debt securities, equity securities, derivative securities, and hybrid securities) for at least a 5 year period

• Bank deposit: A deposit of USD 750,000 in an approved bank in Panama for a minimum period of 5 years

Get Assistance from Easyco Experts!

Would you like assistance to obtain your Work Permit in Panama? Send us a message and we will send you all the information you need to know, as well as help and assess you. Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening

• Manage your Trademark Registration

• Recruiting and Hiring Talent

• Corporate Legal Services

The post Work Permit in Panama: Requirements, How to Obtain it appeared first on EasyCo.

According to Doing Business, registering a business in Panama takes approximately 6 days, and places it in the second position in the Ease to Doing Business Ranking in Latin America. Furthermore, there are several benefits companies get for a certain period of time when their business activities help in some ways the development of the country or certain industries that promote employment, investigation, and more.

Financial Privacy

Over the years, Panama has accumulated some laws and regulations that guarantee financial privacy and secrecy. Banks can’t disclose or start investigations on any of their clients, and all information and operations are confidential. However, it is important to take into account that there are exceptions for this; during legal investigations, and under CRS reporting standard to participating countries.

Territorial Tax System

Article 694 of the Panamanian Fiscal Code states that Income Tax is paid only from the revenue made within the country borders “the taxable income that is produced, from any source within the territory of the Republic of Panama whichever be the place where it is perceived”. All the revenue collected from activities carried out from outside the country is exempt from all taxes in Panama.

Tourism and Agriculture Allowances

Law N°122 was approved in 2019 with the purpose to promote the development of touristic activities, or making extensions of projects already existing in the country. This gives companies a 100% tax credit on the money invested at the beginning of the project. In agriculture, the government also wants to help develop small areas and production. Companies are exempt from income tax if the annual income is under USD 250,000.

Free Trade Zones

In Panama, there are 3 types of Tax-Free Zones: Private, State and Mixed. As of, 2022, there are 20 Free Trade Zones in Panama, 11 active, and 9 are in development. The active ones have around 116 companies working in the area. Each of the FTZs specializes in different areas, some are focused more on commercial activities, manufacturing, industrial, education, or development.

These are some of the most popular Free Trade Zones in Panama:

• Colon Free Trade Zone

  The Colon Free Trade Zone is located in the City of Colon, near the Panama Canal, and with access to both the Pacific and the Atlantic Oceans. This Free Trade Zone is considered the second most important in the world, after Hong Kong, and is also responsible for importing goods distributed to most of Central and South America. These imports come from Europe, Asia, and North America.

• The Panama Pacifico Special Economic Zone

  The Panama Pacific Special Economic Zone is a Commercial and Residential project of the London & Regional Panama Group that started in 2004. The companies in this free trade zone are mainly in the high-tech manufacturing industry, as well as logistics and distribution, fil, maritime and aviation, and venues and services. The companies here have big benefits, such as direct and indirect tax exemptions, legal stability of 10 years (since the registration of a company), migration benefits, and customs exceptions, among others.

• City of Knowledge

  The City of Knowledge or ‘Ciudad del Saber’ (in Spanish), gives incentives to all organizations, companies, etc, that work to promote and develop new investigations and innovations in science, technology, and culture. City of Knowledge also has a Foundation that supports higher education and productive activities. The companies (public and private), organizations, NGOs, etc, that have activities in the City of Knowledge are exempt from all taxes.

Company Formation in Panama

These are some of the general steps you need to follow to register your company in Panama:

1. Choose the right type of company and structure

2. Register your company at the Panamian Public Registry

3. Obtain your Tax ID or RUC in Panama

4. Obtain a Commercial Operation Permit

5. Open a Corporate Bank Account

Get Assistance from Easyco Experts!

Do you want to know more about the Tax Benefits in Panama and how to register your company? Send us a message and we will send you all the information you need to know, as well as help and assess you to successfully start your business in Panama. Easyco also provides additional services to guarantee your company’s compliance, which include:

• Appointment of legal representation

• Providing a registered office address

• Handling tax and accounting

• Hassle-free Payroll Services

• Manage your Company bank account opening

• Manage your Trademark Registration

• Recruiting and Hiring Talent

• Corporate Legal Services

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