Panama has worked to encourage the opening of businesses in the country, optimizing its processes and offering tax benefits to those who decide to open theirs. 

Panama is growing at lightning speed. The country is much more than just the Canal and it is working incessantly to generate better developmental conditions for both local and international businesses. This is why it has simplified the necessary steps to open a business in the country. 

If you are thinking about moving to Panama, here we have a summary of the steps necessary to open your own business: 

Step 1: Create a society

Panamanian legislation has multiple judicial options for business. The most used is the “Anonymous Society”, due to its flexibility and easy management for both local and international duties. One of the benefits that these societies offer is that they can engage in activities that are not taxed in the country.

Understand more about the types of societies in Panama

Step 2: Find a commercial location

It can be bought or rented and it could also be your same residence. The important thing is to provide a physical address that will allow you to complete the process to gain the “Operations Permit” as well as a bank account.

Step 3: Commercial Notice

This process is the requirement to be able to start operating. It is the notification for authorities (Tax, Municipal and Commercial) to understand that the business is ready to start functioning. Once the permit is issued (which includes the Commerce Ministry and Revenue Department) you are able to bill through the use of a fiscal printer.

Step 4: Bank Account

With all your formalities completed and bank requirements checked, you can approach a bank to request to open an account.

Step 5: Ampyme

The Authority of the Micro, Small and Medium Business (Ampyme in Spanish) is an organism that was created by the Panamanian estate to encourage and help small and medium entrepreneurs. When registered with this organism, you gain a series of benefits, specially tax (if your investment is not more than US$150,000.00) when you start operating.

For these processes it is always recommended to work with a Panamanian lawyer that can advise and manage for best decisions. Once the business is up and running, it is recommended to have a registered Panamanian accountant. 

This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.