Requirements to create a company in Panama from Canada

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 is crucial to outline the characteristics of the company you wish to establish in Panama, keeping your specific requirements in mind. Seeking legal counsel is often a wise choice. Numerous professionals excel in this domain, like Legal Solutions Panama, whose track record and expertise make them a reputable authority.

What do you need to create a company in Panama from Canada?

If you’re an entrepreneur from Canada with plans to establish your company in Panama, you need to meet specific criteria established by the Panamanian Government. These requirements include:

  • Simple copy of the general passport of the directors, in this case three, and of the shareholders, which would be a minimum of one.
  • Directors and shareholders must be of legal age, over 18 years old, and possess a current passport.
  • Complete online forms with information regarding the company and its beneficiaries.

It’s crucial to understand that these requirements are applicable to both Panamanians and foreign nationals. Nonetheless, if you are a foreigner residing outside of Panama, there’s no necessity for you to travel there; you can appoint a trusted lawyer or representative to handle your documentation.

Step-by-step instructions for launching a company in Panama

After reviewing the above requirements in detail, it would be ideal for you to know some of the steps that could be useful during the process of opening your company in this country:

  1. Determine your company’s location: An essential initial step is to identify your business’s premises or establish its legal and tax domicile, effectively the company’s headquarters. Depending on your economic and legal requirements, consider which locale aligns best with your objectives, and decide whether the premises will be rented or purchased.
  2. Apply for the Notice of Operations: This requirement ties in with the first step. The Notice of Operations is among the limited documents required by the Panamanian government for those setting up a business. To apply for this document, your company must be registered with the Panamanian Public Registry.
  3. Register the corporation or legal entity: This is akin to your company’s identification document in Panama. Registration requires a name and an identification card, typically taking between 5 to 7 days to complete.
  4. Apply for the Single Taxpayer Registry: This serves as the tax identification number for each taxpayer and is issued by Panama’s General Directorate of Revenue. Currently, several online resources allow for this document’s procurement, which can be examined in more detail on official Panamanian government websites.
  5. Register with the Municipality of Panama (MUPA): This final step ensures your business is locally registered.

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.

Tips for Starting Your Business in Panama as a Foreigner

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 group of seasoned lawyers specializing in such processes, they provide robust support in Panamanian legal matters, easing the establishment of your start-up company. For more information about the services offered by Legal Solutions Panama, feel free to visit here and reach out to them.