[search]

[site map]

[Up]
[Contracts]
[Doing Business]
[Business License]
[Insurance law]
[International Trade]
[Tax Planning]
[Trademark Registration]
[Banking law]

Licensing your Corporation to Do Business in Panama

Types of Business Licenses | The process | Requirements | Next Step?

If you are going to operate a business from Panama, then this should be properly licensed with the Ministry of Commerce (MICI).  Unfortunately, while this is a simple process, Panamanian law does require that this be prepared by a lawyer.  Therefore, the corporation should give a Special Power of Attorney to the lawyer, in order for them to submit the business license application. 

Types of Business Licenses: 

There are three (3) principal types of licenses which a business can have: 

See our Schedule of Fees for incorporating local companies. 

Among these 3 types of licenses, you have a myriad of business types, such as:

For the full list of business types and the type of license required, please see  http://www.panamatramita.gob.pa/InfoExtra/XTRAiybVeX.pdf (This is a website provided by the Panamanian Government to assist in processing applications.)

The Application Process

Getting Started: 

In order to apply for a business license, you will already need to have an "office" or place of business leased or ready to be leased.  In the business license application, it is necessary to indicate the place of business.

Some clients choose to list their home as their initial place of business, while they get set up, and then file a change of place of business once they have the lease.  Obviously, if the application will be linked to the client's immigration process (Micro or Macro Investor Visa), then we recommend that you first find the place of business and file the application with the actual place where the business will be.  Otherwise, it is possible that the Immigration Department will deny the immigration application, indicating that it is not a "real" business. 

The Documentary Requirements

1. Power of Attorney - assuming that the applicant is a company, the President of the Company should issue a Special Power of Attorney to the lawyer to present the application on the Company's behalf.  Our law firm can prepare this for the company. This should be notarised. 
2. Certificate of Good Standing - it will be necessary to obtain from the Public Registry a Certificate of Good Standing for the company, which indicates all of the company's vital details: name, incorporation date, authorised capital, officers and directors, etc. 
3. Copy of the President's cédula or passport, duly notarised. 
4. $50.00 application fee payable to MICI. 

Presenting the application: 

The license application is a simple, one-page form, in which the lawyer will indicate the name of the business, the trading name (DBA) if different from the corporation name, the address, the principals (officers & directors), the business purposes (what kind of business will be undertaken), the actual capital invested in the business, date of start of business, and the type of license being applied for. 

The application form must be accompanied by certain documents, which are dealt with in the previous section. 

Interim and Definitive Business License: 

While the Ministry of Commerce is reviewing the application, they will issue an interim business license.  With this document, it is possible to open the business to the public and begin operating.  It is also possible to continue with further business steps. 

Usually the MICI takes about 2 weeks to finish their review of the application and issue the definitive business license.  Once the business has the license, they should frame it and it should be displayed in the "store front" of the business, where any person that walks in can easily see it. 

What's the next step? 

After the company has obtained the business license from MICI, it may still be necessary to register with other government entities or local authorities.  For example, most businesses should be registered with the Social Security Board, Ministry of Labour, and the local city council (Alcaldía) and pay a municipal tax (payable monthly) for operating in that district.  It is therefore necessary to notify the city council that the business has opened, and the city council will send an inspector to the business, and pass (by resolution) the amount of city council taxes to be paid (this is pretty standard, but various from town to town). 

It may also be necessary to have health inspectors or the such-like inspect and give operation permits, depending on the type of business which is to be run. 

Return to: Doing Business in Panama.

Go to: Fees & Costs.

For legal advice specific to your particular business, please contact us.

[ Up ] [ Contracts ] [ Doing Business ] [ Business License ] [ Insurance law ] [ International Trade ] [ Tax Planning ] [ Trademark Registration ] [ Banking law ]

Last modified 08-May-2009 12:07 -0400

Copyright - Disclaimers - Privacy Statement

Copyright © 2000 - 2011, Beth Anne Gray J.

For questions or comments, please write to the webmaster

Last modified 14-Apr-2011 10:06 -0400