Entrepreneurship

In short: opening a company in Panama to operate inside the country has four milestones: choosing the legal form (natural person, corporation or limited liability company), registering it at the Public Registry, obtaining the Notice of Operation on the Panamá Emprende platform of the Ministry of Commerce and Industry, which automatically generates the RUC taxpayer ID with the Directorate General of Revenue, and registering as an employer with the Social Security Fund if there will be employees. The Notice of Operation costs 15 balboas for natural persons and 55 for companies, and replaces the old commercial licence. Liberal professions, agriculture…

In short: Panama offers three main legal vehicles and each serves a different purpose. The corporation (sociedad anónima), governed by Law 32 of 1927, is the most used for holdings, businesses with several shareholders and international structures: three directors, registered shares and a 300 balboa annual fee. The limited liability company, under Law 4 of 2009, is simpler, with one administrator and identified partners, and suits local operating SMEs. The private interest foundation, under Law 25 of 1995, is not for trading but for holding assets and planning succession, with 10,000 dollars of initial endowment and a flat fee of…