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In Panama City, Panama, the legal structure for business formation is designed to encourage foreign investment and provide an accessible economic environment for both local and overseas entrepreneurs. The process covers a wide range of different business structures, including corporations, general partnerships, limited partnerships, and sole proprietorships.
While the business formation process in Panama is designed to be straightforward, it can often be complex and time-consuming, especially for those unfamiliar with Panama's legal system. A lawyer can guide you in choosing the most suitable legal form for your business, filing all the necessary documents, understanding all the legal and tax implications, and ensuring compliance with all local regulations to avoid legal complications down the line.
Panama law requires that a registered local agent, who generally must be a lawyer, conduct new business registrations. Panama’s law also encourages foreign business by exempting overseas income from taxes. The most common type of corporation formed by foreigners is the Panama Corporation. To establish a business, you will need a notary to formalize the company's constitutional declaration and the company must also be registered with the Public Registry. Furthermore, Panama operates under a Civil Law system, which means that the laws are codified and should be interpreted literally by judicial bodies. Knowledge of these laws and codes is highly crucial especially in the business formation process.
Yes, foreign businesses are allowed to operate in Panama, subject to certain requirements and regulations.
The four main types of legal structures in Panama are corporations, limited liability companies, general partnerships, and sole proprietorships. The type you select will depend on various factors, including the nature and size of your business.
On average, it can take 7-10 business days to complete the incorporation process. However, this could span over a few weeks depending on the type of business and how quickly all required documentation is provided.
No, Panama operates on a territorial basis for taxation, meaning foreign income generated outside Panama is not subject to taxation.
Yes, all companies formed in Panama must be registered with the Public Registry as part of the process of their formation.
The Ministry of Commerce and Industries of Panama, the Panama Chamber of Commerce, and the Public Registry can provide additional information on new business formation. You may also consider engaging a trusted legal firm well-versed in Panama's laws.
If you're planning to start a new business in Panama City, Panama, seek legal advice to ensure a smooth business setup. Lawyer's role is crucial in guiding through the local laws and procedures. For more personalized advice, you should consider retaining an attorney who specializes in business incorporation in Panama and has experience navigating the local legal landscape.
