How to open a company in Panama from Canada: requirements

Are you contemplating start your business in Panama? Known for its advantageous business climate, this Central American nation boasts a thriving economy and a strategic position that is drawing in investors and entrepreneurs alike. Staying informed about the current trends and changes in Panama’s business sector, whether you’re local or international, can be an excellent first step.

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

For entrepreneurs hailing from Canada, if your upcoming objective is to set up your business in Panama, you will need to meet specific criteria established by the Panamanian Government. These criteria 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 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

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, there are several requirements you must fulfill:

• 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.

Advice for Launching Your Business in Panama as a Foreigner

With its supportive environment, Panama presents exceptional opportunities for entrepreneurs from Canada. Being well-prepared and strategically planning each phase can significantly enhance the likelihood of your business succeeding. Nonetheless, securing expert legal guidance is crucial, as it can streamline the process. In this regard, Legal Solutions Panama could be your ideal choice.

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.