What steps are needed to convert a community group into a formal nonprofit in Panama?

ransform your community group into an official nonprofit organization in Panama, there are several steps and requirements you'll need to follow. Here's a general overview of the process, along with the documents, registrations, and ongoing obligations:

1. Drafting the Bylaws (Estatutos)

What it is: The bylaws are the governing rules for the organization. They should include the organization's name, purpose, structure, membership rules, governance, and procedures for meetings, among other details.

Required details:

Name of the nonprofit

Purpose and mission of the organization

Organizational structure (Board of Directors, roles, etc.)

Membership requirements (if any)

Rules for decision-making and voting

Dissolution clause (how assets are distributed in case of dissolution)

2. Forming the Board of Directors

What it is: You need to establish a Board of Directors, which will oversee the nonprofit. The board typically consists of at least three members.

Requirements: The members must be individuals of legal age (18 years or older) and should not be directly related in terms of family ties to maintain good governance practices.

3. Registering the Organization

Where to Register:

Public Registry (Registro Público): The nonprofit must be registered with the Public Registry of Panama to be legally recognized.

Tax Identification Number (RUC): You need to apply for a tax identification number through the Directorate General of Revenue (Dirección General de Ingresos - DGI).

Documents required for registration

The notarized bylaws (Estatutos)

Minutes of the meeting where the organization was created

Board of Directors’ information (names and identification)

Proof of legal address (could be a lease or utility bill)

RUC registration (tax identification)

4. Obtaining Nonprofit Status

Tax Exemptions: Nonprofits in Panama are generally eligible for tax exemptions, but you must request this status from the DGI. It's essential to demonstrate that the organization's activities align with public benefit purposes, such as education, health, culture, or charity.

What’s required: A description of your activities, a statement confirming no profits will be distributed to members, and a declaration of your commitment to public good.

5. Ongoing Obligations

Annual Reports: Nonprofits are required to submit annual financial reports, which typically include:

Balance sheets

Profit and loss statements

Auditing: Larger nonprofits may be required to have their financial statements audited by an independent auditor, but smaller organizations may not have this obligation unless specifically required by the Ministry of Commerce and Industry or the DGI.

Annual General Assembly: Nonprofits must hold an Annual General Assembly (AGA) to elect new board members and approve financial statements.

Tax Returns: Even though nonprofits are tax-exempt, they still must file annual tax returns with the DGI.

6. Cost and Timeline

Cost: The fees involved in setting up a nonprofit will include notary fees, registration costs, and possibly legal or accounting fees. The total cost may range from $500 to $2,000 USD, depending on the complexity of your organization and the professional services hired. Plus Expenses 

Timeline: The process of registering the nonprofit typically takes 2-3 months, assuming there are no significant issues with the paperwork.

7. Hiring a Lawyer

It's highly recommended to consult with a lawyer who specializes in nonprofit law in Panama to ensure that all legal requirements are met. They can assist in drafting your bylaws, guiding you through the registration process, and ensuring compliance with all local regulations. Legal fees can vary based on the complexity of the organization, but a lawyer's assistance will help expedite the process and prevent any legal missteps.

By following these steps, you can formally register your community group as a nonprofit organization in Panama, allowing you to operate legally and with access to certain benefits, such as tax exemptions and eligibility for grants

Regards

Rodrigo Julio Molina O 

Transform your community group into an official nonprofit organization in Panama, there are several steps and requirements you'll need to follow. Here's a general overview of the process, along with the documents, registrations, and ongoing obligations:

1. Drafting the Bylaws (Estatutos)
What it is: The bylaws are the governing rules for the organization. They should include the organization's name, purpose, structure, membership rules, governance, and procedures for meetings, among other details.

Required details:
Name of the nonprofit
Purpose and mission of the organization
Organizational structure (Board of Directors, roles, etc.)
Membership requirements (if any)
Rules for decision-making and voting
Dissolution clause (how assets are distributed in case of dissolution)

2. Forming the Board of Directors
What it is: You need to establish a Board of Directors, which will oversee the nonprofit. The board typically consists of at least three members.
Requirements: The members must be individuals of legal age (18 years or older) and should not be directly related in terms of family ties to maintain good governance practices.

3. Registering the Organization
Where to Register:
Public Registry (Registro Público): The nonprofit must be registered with the Public Registry of Panama to be legally recognized.
Tax Identification Number (RUC): You need to apply for a tax identification number through the Directorate General of Revenue (Dirección General de Ingresos - DGI).
Documents required for registration:
The notarized bylaws (Estatutos)
Minutes of the meeting where the organization was created
Board of Directors’ information (names and identification)
Proof of legal address (could be a lease or utility bill)
RUC registration (tax identification)

4. Obtaining Nonprofit Status
Tax Exemptions: Nonprofits in Panama are generally eligible for tax exemptions, but you must request this status from the DGI. It's essential to demonstrate that the organization's activities align with public benefit purposes, such as education, health, culture, or charity.
What’s required: A description of your activities, a statement confirming no profits will be distributed to members, and a declaration of your commitment to public good.

5. Ongoing Obligations
Annual Reports: Nonprofits are required to submit annual financial reports, which typically include:
Balance sheets
Profit and loss statements
Auditing: Larger nonprofits may be required to have their financial statements audited by an independent auditor, but smaller organizations may not have this obligation unless specifically required by the Ministry of Commerce and Industry or the DGI.
Annual General Assembly: Nonprofits must hold an Annual General Assembly (AGA) to elect new board members and approve financial statements.
Tax Returns: Even though nonprofits are tax-exempt, they still must file annual tax returns with the DGI.

6. Cost and Timeline
Cost: The fees involved in setting up a nonprofit will include notary fees, registration costs, and possibly legal or accounting fees. The total cost may range from $500 to $2,000 USD, depending on the complexity of your organization and the professional services hired. Plus Expenses
Timeline: The process of registering the nonprofit typically takes 2-3 months, assuming there are no significant issues with the paperwork.

7. Hiring a Lawyer
It's highly recommended to consult with a lawyer who specializes in nonprofit law in Panama to ensure that all legal requirements are met. They can assist in drafting your bylaws, guiding you through the registration process, and ensuring compliance with all local regulations. Legal fees can vary based on the complexity of the organization, but a lawyer's assistance will help expedite the process and prevent any legal missteps.
By following these steps, you can formally register your community group as a nonprofit organization in Panama, allowing you to operate legally and with access to certain benefits, such as tax exemptions and eligibility for grants

ransform your community group into an official nonprofit organization in Panama, there are several steps and requirements you'll need to follow. Here's a general overview of the process, along with the documents, registrations, and ongoing obligations:

1. Drafting the Bylaws (Estatutos)

What it is: The bylaws are the governing rules for the organization. They should include the organization's name, purpose, structure, membership rules, governance, and procedures for meetings, among other details.

Required details:

Name of the nonprofit

Purpose and mission of the organization

Organizational structure (Board of Directors, roles, etc.)

Membership requirements (if any)

Rules for decision-making and voting

Dissolution clause (how assets are distributed in case of dissolution)

2. Forming the Board of Directors

What it is: You need to establish a Board of Directors, which will oversee the nonprofit. The board typically consists of at least three members.

Requirements: The members must be individuals of legal age (18 years or older) and should not be directly related in terms of family ties to maintain good governance practices.

3. Registering the Organization

Where to Register:

Public Registry (Registro Público): The nonprofit must be registered with the Public Registry of Panama to be legally recognized.

Tax Identification Number (RUC): You need to apply for a tax identification number through the Directorate General of Revenue (Dirección General de Ingresos - DGI).

Documents required for registration:

The notarized bylaws (Estatutos)

Minutes of the meeting where the organization was created

Board of Directors’ information (names and identification)

Proof of legal address (could be a lease or utility bill)

RUC registration (tax identification)

4. Obtaining Nonprofit Status

Tax Exemptions: Nonprofits in Panama are generally eligible for tax exemptions, but you must request this status from the DGI. It's essential to demonstrate that the organization's activities align with public benefit purposes, such as education, health, culture, or charity.

What’s required: A description of your activities, a statement confirming no profits will be distributed to members, and a declaration of your commitment to public good.

5. Ongoing Obligations

Annual Reports: Nonprofits are required to submit annual financial reports, which typically include:

Balance sheets

Profit and loss statements

Auditing: Larger nonprofits may be required to have their financial statements audited by an independent auditor, but smaller organizations may not have this obligation unless specifically required by the Ministry of Commerce and Industry or the DGI.

Annual General Assembly: Nonprofits must hold an Annual General Assembly (AGA) to elect new board members and approve financial statements.

Tax Returns: Even though nonprofits are tax-exempt, they still must file annual tax returns with the DGI.

6. Cost and Timeline

Cost: The fees involved in setting up a nonprofit will include notary fees, registration costs, and possibly legal or accounting fees. The total cost may range from $500 to $2,000 USD, depending on the complexity of your organization and the professional services hired. Plus Expenses 

Timeline: The process of registering the nonprofit typically takes 2-3 months, assuming there are no significant issues with the paperwork.

7. Hiring a Lawyer

It's highly recommended to consult with a lawyer who specializes in nonprofit law in Panama to ensure that all legal requirements are met. They can assist in drafting your bylaws, guiding you through the registration process, and ensuring compliance with all local regulations. Legal fees can vary based on the complexity of the organization, but a lawyer's assistance will help expedite the process and prevent any legal missteps.

By following these steps, you can formally register your community group as a nonprofit organization in Panama, allowing you to operate legally and with access to certain benefits, such as tax exemptions and eligibility for grants

Regards

Rodrigo Julio Molina O 

Au Panama, la voie pratique pour un groupe communautaire est généralement une « Asociación sin Fines de Lucro (OSFL) ». Les étapes sont :

 

1. 
   

   Préparer les documents de base

   
   

   Statuts/règlement intérieur (nom, objet, domicile, règles d’adhésion, gouvernance, quorum/vote, rôles du conseil, utilisation des biens/fonds, dissolution), en plus d’un procès-verbal / acte de constitution (acta de constitución) approuvant les statuts et nommant le conseil. Cela est normalement déposé par l’intermédiaire d’un avocat panaméen.

   
   


2. 
   

   Obtenir la personnalité juridique (personería jurídica)

   
   

   Déposer la demande (par l’avocat / procuration) auprès du Ministère du Gouvernement (Ministerio de Gobierno) pour la reconnaissance / l’enregistrement de l’OSFL.

   
   


3. 
   

   Notarisation + Registre public

   
   

   Une fois approuvée, la résolution / les statuts sont généralement portés chez un notaire puis enregistrés afin que l’entité puisse opérer formellement (contrats, comptes bancaires, etc.).

   
   


4. 
   

   Enregistrements fiscaux et opérationnels (selon les besoins)

   
   

   Si vous recevez des dons, embauchez du personnel, ouvrez des comptes ou réalisez toute activité imposable/enregistrable, vous devez généralement obtenir un RUC/NIT auprès de l’autorité fiscale (DGI). Si vous recevez des dons admissibles, des étapes supplémentaires de conformité fiscale s’appliquent.

   
   

 

 

Obligations continues (ce que les gens oublient)

– Tenir un registre des procès-verbaux, un registre des membres et des écritures comptables ; maintenir une adresse locale effective.

– Déposer les rapports requis par le cadre réglementaire des OSFL (y compris les obligations de déclaration prévues par le décret régissant les OSFL).

– Si vous recevez des dons dans certaines conditions, vous devrez peut-être déposer des rapports de dons auprès de la DGI.

 

Audits / rapports annuels

– Rapports annuels : oui, vous devez partir du principe que des rapports/mises à jour continus sont requis (notamment pour vous conformer aux règles des OSFL).

– Audits : pas automatiquement pour chaque petite OSFL, mais vous devez conserver des écritures comptables ; les audits deviennent souvent une exigence des donateurs, de programmes spécifiques ou si votre envergure/activité le nécessite.

 

Délais typiques

De manière réaliste, prévoyez un processus de plusieurs mois. Selon les examens/observations et le type d’OSFL, cela peut prendre plusieurs mois (les fourchettes communément citées vont jusqu’à 4 à 8 mois pour l’approbation complète).

 

Coût typique (ordre de grandeur)

Les frais gouvernementaux sont relativement faibles par rapport au travail juridique. Les références tarifaires minimales des avocats indiquent environ 1 000 USD rien que pour le traitement juridique de la personería jurídica d’une OSFL, mais les totaux du marché varient selon la complexité, les traductions, les notarizations et les enregistrements.

 

Studio Panama Italia