How to create a company in Panama and obtain permanent residence?

The short answer is: yes, but it depends on several specific factors. To apply for a permanent or temporary residence permit through the creation of a company in Panama, it is essential to comply with certain conditions established in the immigration regulations.

• Nationality: Some immigration programs are limited depending on your country of origin.
• Invested Capital: There are minimum investment requirements depending on the type of residence requested.
• Labor Impact: Your company must comply with regulations in terms of local employment.

Next, we will analyze these factors in depth and explain the main alternatives for establishing your legal residence in Panama.

The program Permanent Residence for Friendly Countries is designed for citizens of more than 50 countries that have friendly relations with Panama. This program is especially attractive to foreigners who want to obtain residency through the creation of a company or economic activities.

The requirements include:

• Be a citizen of a country included in the list of Friendly Countries (such as Spain, the United States, Argentina, among others).
• Demonstrate a professional, economic or investment relationship in Panama. This includes setting up or buying a local business.
• Have a clean criminal record.

This option not only makes it easier for you to live, but it also allows you to work legally in Panama without the need for additional permits.

If your nationality does not qualify for the Friendly Countries program, permanent residence through investment may be a viable alternative. To this end, the Panamanian government offers different options, including:

1. Investor in a macro-company: This program requires a minimum investment of $160,000 in the formation of a Panamanian company. In addition, the company must create jobs for Panamanian citizens.
2. Investment in reforestation: Another option includes investing in reforestation projects approved by the government, with an initial amount of $80,000.
3. Qualified residence by special economic zone: If you establish your business in areas such as the City of Knowledge or the Colon Free Zone, you can access exclusive programs designed to attract foreign investment.

According to current regulations, each option requires documented proof of your investment and its impact within the country.

A key aspect of migration policies in Panama is to ensure that foreign companies contribute to local employment. Under labor regulations, your company must comply with the following:

• Your company's workforce must be at least 90% comprised of Panamanian citizens.
• If you have foreign workers, the positions must justify specific skills that cannot be filled locally.
• Compliance with these rules is essential to preserve your immigration status and your business license.

Creating jobs in Panama not only benefits your residency application, but it also significantly improves the reputation and sustainability of your company in the country.

To ensure that your residency application is successful, it is essential to prepare all the required documentation. This includes:

• Valid passport with notarized copies.
• Apostilled or legalized criminal record.
• Legal evidence of the creation of your company in Panama (company statutes, commercial registration, etc.).
• Bank certificate that demonstrates your financial capacity.
• Documents certifying compliance with investment capital and labor contribution requirements.

The process can last from a few weeks to several months, depending on the category under which you submit your application.

At Limitless Legal, we manage all the procedures for you, ensuring regulatory compliance and adequate presentation to accelerate your approval process.