How to Set Up a Business in Panama

Not only is Panama a global logistics hub, but it is also one of the most business-friendly destinations. Its main advantages include:

• Tax incentives: Companies registered in Panama are not required to pay taxes on foreign income.
• Reliable banking system: One of the most robust in Latin America, facilitating the management of your finances.
• Government support: There are programs and laws designed to attract foreign investments.
• Access to international markets: Thanks to the Panama Canal and free trade agreements.

Panama combines ideal economic and geographical factors for any type of business. However, to ensure success, it's essential to comply with legal requirements from the outset.

The process of establishing a company in Panama involves several legal steps. Here are the most important ones:

1. Define your business type

Select the appropriate structure (e.g., Corporation or Limited Liability Individual Company) based on your business objectives.

2. Choose a name for your company

Ensure the name is available by checking with Panama’s Public Registry.

3. Draft the Articles of Incorporation

This includes your company’s legal statutes, which must be prepared and notarized by a lawyer.

4. Register with the Public Registry

Registering your company’s legal documents is essential for it to gain legal identity.

5. Obtain a commercial license

Apply for the license at the relevant Municipality.

6. Open a corporate bank account

You will need to provide company documentation to open your corporate account.

With support from the lawyers in Panama at Limitless Legal, we can handle each step of this process, ensuring compliance with all local regulations.

If you plan to establish a business in Panama and reside permanently, it’s crucial to understand the laws surrounding permanent residency in Panama. Here, we address the most common questions:

How long can I stay outside Panama if I am a permanent resident?

Permanent residents must return to the country every two years to comply with legal requirements.

What happens if I don’t visit Panama within the stipulated time?

You could lose your immigration status and need to undergo a permit rehabilitation process.

What happens if I exceed six years outside Panama?

After this period, you will automatically lose your permanent residency and have to start the process over. To avoid this, keep your immigration status active.

Rehabilitation of the permanent residency permit is possible under specific conditions. The main requirements include:

• Filing a formal application to Panama’s National Migration Service.
• Providing documents justifying your absence (e.g., medical or work reasons).
• Paying accumulated fines for exceeding the allowed time outside the country.
• Obtaining specialized legal assistance to prepare your case.

At Limitless Legal, we ensure that you meet all the requirements, streamlining the process to regain your immigration status without hassle.

In Limitless Legal, our goal is to ensure that your experience in Panama is as smooth and successful as possible. With years of experience in legal services in Panama, we offer:

• Expert advice: Specialization in immigration law, company incorporation and commercial contracts.
• Customized solutions: We adapt to your specific needs.
• Fast support: Immediate attention and efficient management of legal procedures.

Our team is committed to you every step of the way, from the creation of your company to the maintenance of your residence.