Step-by-step guide: set up a company in Panama from Canada

Are you considering create a company in Panama? This nation in Central America offers a supportive environment for businesses, featuring an expanding economy and a prime geographical position that is drawing in modern investors and entrepreneurs. Regardless of your location, staying informed about the current trends in Panama’s business sector is an excellent starting point.

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 Canada?

If you’re an entrepreneur from Canada aiming to open your business in Panama, you’ll need to meet specific criteria outlined by the Panamanian Government. These prerequisites include:

  • A straightforward copy of the general passport for the directors, numbering three, and for the shareholders, with at least one minimum required.
  • Directors and shareholders are required to be of legal age, over 18 years old, and must hold a valid passport.
  • Fill out online forms with details about the company and its beneficiaries.

It’s essential to recognize that these requirements are applicable to both Panamanians and foreigners. Nonetheless, if you’re a foreign resident and presently outside Panama, there’s no need to travel to the country; you can appoint a trusted attorney or a representative to handle your documentation process.

A step-by-step guide to opening a company in Panama

Once you’ve thoroughly examined the aforementioned requirements, it would be beneficial for you to learn about certain steps that may aid in the process of establishing your company in this country:

  1. Identify your company’s headquarters: A critical initial step involves determining the location of your business or your legal and tax office, essentially your company’s headquarters. Evaluate which site aligns best with your financial and legal requirements and consider whether the property will be leased or owned.
  2. Apply for the Notice of Operations: This step is linked to the first one. The Notice of Operations is among the few documents mandated by the Panamanian government for those wishing to start a company. To secure this document, you must first register your company with the Panamanian Public Registry.
  3. Register the corporation or legal entity: This acts as the identification document for your business in Panama. To complete this registration, you’ll need to provide a company name and an identification card. This process typically takes about 5 to 7 days.
  4. Obtain the Single Taxpayer Registry: This is your tax identification number, assigned by Panama’s General Directorate of Revenue. Currently, there are several online options available to acquire this document. You can find more detailed guidance on platforms provided by the Government of Panama.
  5. Register with the Municipality of Panama (MUPA): This final step ensures your local registration is complete.

To finalize this registration, you must also meet a set of requirements:

  • 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 illustrating the location of the business establishment.
  • Details must include the township, urbanization, neighborhood, street, street number, building and apartment or commercial space number, as well as at least two reference points.
  • Current email addresses and phone numbers.
  • A copy of income tax returns from when the business began operations. For businesses established before 2016, it’s advisable to bring all income tax returns since the start of the notice.
  • A copy of the Articles of Incorporation and the Certificate of Public Registry of Panama, which should be updated and not older than three months.
  • Since January 2016, signage must be declared based on area; the length by width dimensions must be provided in square meters upon registration.
  • A copy of income tax returns from the initial date of operations.
  • Photographs of the business premises, particularly the exterior frontage.

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.

As a team of skilled lawyers specializing in this field, they provide robust support in Panamanian legal matters, simplifying the incorporation of your start-up company. If you’re eager to learn more about the services offered by Legal Solutions Panama, feel free to visit their webpage and get in touch with them.