What are the Corporate Compliance Requirements for Legal Entities in Panama?

Panama is experiencing unprecedented economic growth, showing consistent increases in GDP year on year. The country offers competitive visa, commercial, and residency incentives for foreign entrepreneurs, as well as special economic zones to spur further business activity. The Central American country is the perfect platform into markets in the rest of the Americas; its world-class logistics facilities and welcoming business environment are drawing the attention of foreign investors and entrepreneurs.

Nevertheless, Panama still enforces specific corporate compliance requirements that need to be followed by all market entrants into this bustling economy. One such specification for new businesses is that during the company formation process, a new company must have three directors which can be corporations or individuals of any nationality. Panamanian IBCs are obliged to appoint three officers (a president, secretary, and treasurer) who may also act as presidents. For some activities, special licenses must be obtained in areas such as banking, insurance, fund management, and building societies.

When setting up a business in Panama, ensure you comply with all corporate regulations, and understand your obligations as a foreign company. Make sure you get the support you need from local legal and accounting specialists to ease the burden of your expansion and ongoing operational needs. With trusted Panamanian experts, you have greater freedom to focus on other elements of your new investment.

This presentation gives a detailed outlook on social security, employment, and tax requirements you must adhere to in order to operate in the country. For more information on how to get your business off the ground in Panama, contact our local team today.

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