How to set up a company in Panama from United States in 2024
Business

How to set up a company in Panama from United States in 2024

Frank S. Laing

Are you contemplating expand your operations to Panama? Nestled in Central America, this nation provides an advantageous business setting, characterized by an expanding economy and a prime geographical position that currently draws both investors and business visionaries. Whether from within or outside the country, gaining insights into the latest trends and shifts in Panama’s business sector is an excellent preliminary step.

Moreover, it is wise to outline the specifics of the company you intend to establish in Panama, taking into account your particular requirements. Seeking legal counsel could be a prudent move. Numerous specialists in the area, including Legal Solutions Panama, stand out due to their expertise and reputation, making them a notable authority.

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

If you’re an entrepreneur hailing from United States and your upcoming objective is to register your enterprise in Panama, it’s essential to adhere to specific regulations established by the Panamanian Government. These requirements include:

  • Simple copy of the general passport of the directors, in this case three, and of the shareholders, which would be a minimum of one.
  • Directors and shareholders must be of legal age, over 18 years old, and possess a current passport.
  • Complete online forms with information regarding the company and its beneficiaries.

It’s crucial to understand that these requirements are applicable to both Panamanian nationals and international individuals. Nevertheless, if you’re a foreign national living outside of Panama, traveling to the country isn’t necessary. You can appoint a trusted attorney or a representative to handle your paperwork on your behalf.

Step-by-step instructions for launching a company in Panama

Having thoroughly reviewed the requirements mentioned earlier, it would be beneficial for you to understand the steps that may assist you in the process of establishing your business in this country:

  1. Establish your company’s main office: The initial step involves determining your business location or legal and tax domicile, which serves as your company’s headquarters. Consider your financial and legal needs when choosing the most suitable location, and decide whether it will be leased or owned.
  2. Obtain the Notice of Operations: This step is linked to the first. One of the few documents required by the Panamanian government for establishing a company is the notice of operations. To request this, your company must be registered with the Panamanian Public Registry.
  3. Register the corporation or legal entity: Similar to your company’s identity document in Panama, this step involves providing a name and an identification card. Typically, this process takes between 5 and 7 days to complete.
  4. Apply for the Single Taxpayer Registry: This is the tax identification number assigned to each taxpayer, issued by Panama’s General Directorate of Revenue. Presently, there are several online methods to obtain this document, which you can explore in detail on the Government of Panama’s websites.
  5. Register with the Municipality of Panama (MUPA): This final step ensures that your company is locally registered.

To finalize this registration, there are several requirements you must fulfill:

  • A copy of the Notice of Operations.
  • A copy of the ID card or passport of the legal representative mentioned in the notice of operations.
  • A sketch detailing the location of the commercial establishment.
  • The location must include details such as township, urbanization, neighborhood, street name and number, premises or residence number, building name, and apartment or commercial space number, along with at least two reference points.
  • Updated email addresses and phone numbers.
  • A copy of income tax returns from the date operations began. For businesses established before 2016, it’s advisable to bring all income tax returns from the start of the notice.
  • A copy of the Articles of Incorporation and a Certificate from the Public Registry of Panama, which should be updated and not older than three months.
  • Since January 2016, signage must be declarative based on area, presented in square meters during registration, considering length by width.
  • A copy of income tax returns since the commencement of operations.
  • Photos of the commercial premises, focusing on the exterior front.

Tips for Starting Your Business in Panama as a Foreigner

Panama presents a welcoming environment, offering distinctive opportunities for entrepreneurs from United States. Staying well-informed and carefully planning each phase may significantly boost your business’s success prospects. Nonetheless, seeking assistance from seasoned legal advisors is equally crucial to streamline the process. In this context, Legal Solutions Panama could be the ideal choice for you.

Being a team of expert lawyers in this type of process, you would be counting on solid support in Panamanian legal terms, which facilitates the incorporation of your start-up company. If you are interested in knowing more details about the services of Legal Solutions Panama, visit their website and contact them.