Opening a company in Panama from Canada: legal checklist

Opening a company in Panama from Canada: legal checklist

Are you thinking of expanding your business to Panama? This Central American country offers a favorable business environment, with a growing economy and strategic location that seems to be attracting new investors and entrepreneurs today. Whether in or out of the country, finding out about the latest developments in the Panamanian business landscape is a good way to get started.

Moreover, it’s wise to outline the specifics of the business you aim to establish in Panama, taking your requirements into account. Seeking advice from legal professionals can be a prudent choice. Numerous specialists, like Legal Solutions Panama, stand out due to their extensive experience and expertise, making them a reputable source for guidance.

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

If you’re an entrepreneur hailing from Canada 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:

  • A straightforward photocopy of the general passport for the directors, numbering three in this scenario, along with the shareholders, with at least one required.
  • The directors and shareholders must be legally adults, over the age of 18, and have a valid passport.
  • Fill out online forms with details about the company and its beneficiaries.

It’s essential to highlight that these requirements are applicable to both Panamanians and foreigners. However, if you are a foreign national residing outside of Panama, there’s no need to travel to the country. You have the option to appoint a trusted attorney or representative to handle the processing of your documents.

Step-by-step Instructions for Launching a Company in Panama

Once you have thoroughly examined the requirements mentioned earlier, it would be beneficial to familiarize yourself with several steps that could aid you in the process of establishing your company in this country:

  1. Establish your company’s headquarters: Determine the location of your business or its legal and tax address, which serves as your company’s headquarters. Consider your financial and legal needs to decide whether the premises will be leased or owned, and choose a location that aligns with your requirements.
  2. Apply for the Notice of Operations: This requirement is linked to the first step. The Notice of Operations is one of the fundamental documents required by the Panamanian government from anyone looking to establish a company. To obtain this, your company must be registered with the Panamanian Public Registry.
  3. Register the corporation or legal entity: This functions as your company’s identity card in Panama. During registration, you need to submit a company name and identification card. Typically, this process takes between 5 to 7 days.
  4. Obtain the Single Taxpayer Registry: This is akin to a tax identification number provided to each taxpayer by the General Directorate of Revenue in Panama. Nowadays, various online methods are available to secure this document, and more detailed information can be found on government websites.
  5. Register with the Municipality of Panama (MUPA): This final step ensures your local registration is complete.

To complete this registration you must also comply with a series of requirements:

  • Copy of the Notice of Operations.
  • Copy of the ID card or passport of the legal representation in the notice of operations.
  • Sketch of the location of the commercial establishment.
  • It must include the township, urbanization, neighborhood, street, street number, number of premises or residences, building and number of apartment or commercial space, and at least 2 reference points.
  • Updated e-mail and phone numbers.
  • Copy of the income tax returns from the date of commencement of operation. If the business is from years before 2016, it is recommended to bring all income tax returns from the date of commencement of the notice.
  • Copy of the Articles of Incorporation and Certificate of Public Registry Panama, which must be updated and not older than 3 months.
  • As of January 2016, the sign becomes declarative based on the area, length by width, the dimensions must be presented in square meters at the moment of registration.
  • Copy of income tax returns from the date of commencement of operations.
  • Photos of the commercial premises, specifically the exterior front.

Suggestions for Foreigners Launching a Business in Panama

Panama presents exceptional opportunities for entrepreneurs from Canada thanks to its conducive environment. Staying informed and meticulously planning each phase can greatly enhance your business’s success potential. Additionally, seeking the assistance of legal experts is crucial in streamlining the process. For such expertise, 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.

By Roger W. Watson

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