|
Hundreds of foreigners start new businesses in Panama every year. Knowing Panama’s laws regulating business and commerce along with their structures is critical before creating a new Panama business. There are 3 ways to own a Panama business: 1. Sole Ownership where an individual or a family starts a new business. 2. Partnership where you team with one or more people to start a new business. 3. Corporation legally registered with the government issuing corporate stocks with a Board of Directors and at least three officers. Sole ownership speaks for itself so here is an explanation of the two legal entities: Panama Corporation Two people called “subscribers” create a Panama corporation by filing the Articles of Incorporation with the government’s Public Registry. After the Panama corporation is registered a minimum of one shareholder is needed. General Partnership General Partnerships are recognized in Panama and are called “Asociacion General”. The problem with this type of partnership is that all of the partners can be held liable by a civil court if one of them is negligent or fraudulent during the course of conducting business on behalf of the partnership. Limited Partnership Panama recognizes Limited Partnerships called “Sociedad de Responsibilidad Limitada” (SRL). Between two to 20 partners from any country can form the limited partnership. The capital can range between $2,000 USD to $50,000 USD. Every member’s name is filed with Panama’s Public Registry along with their capital contribution. While a General Partnership requires meetings to be held, If there are five members or less no meetings are needed. The partners’ civil liabilities are limited to the capital contribution. Civil Partnership Panama also recognizes a Civil Partnership called “Sociedad Civil”. Partners are subject to unlimited civil court judgment liability. This is a common partnership for Panama professionals like doctors, attorneys, and architects. Business Name Once you have decided on the type of entity to own the Panama business, a unique business name must be selected. Panama’s Public Registry will contain all of the Panama corporations along with their company’s business name. The same goes for Panama partnerships. RUC Panama’s revenue agency (DGI) issues a RUC which is a company’s income tax ID number. This number is used for all business purchases and sales along with the income tax return. Employees New businesses hiring workers must obtain a new social security employer number from Panama’s Social Security Administration (Seguro Social). The worker’s social security registration is also handled by the Segura Social in conjunction with the Ministry of Labor (Ministerio de Trabajo). Panama Tourism Tourism businesses must obtain a new tax account with Panama Ministry of Tourism (Autoridad de Turismo) or “ATP”. Tourism businesses must register with the ATP. Hotels are required to impose a 10% tourism sales tax on top of the normal 7% sales tax. Foreigners Restricted Foreigners cannot become medical or veterinarian doctors, attorneys, or open a retail business. Foreigners are required to be legal residents for at least 10 years before becoming real estate agents (brokers) or insurance brokers. For free information about Staring a New Business in Panama visit this Panama law firm's website: http://www.panama-offshore-services.com/ © COPYRIGHT 2013 Steven Rich, MBA
Related Articles -
Panama business, Panama, new business Panama,
| 
