Commercial companies are composed of Dignitaries (President, Secretary, and Treasurer); Directors (at least three); and Shareholders. Shareholders have control over the company and have the ability to appoint Directors, who in turn select the President and other executives responsible for managing the company’s operations.

The Resident Agent is the lawyer or legal firm responsible for drafting and registering the articles of incorporation of a company or the founding deed of a Private Interest Foundation. Panamanian law requires their appointment to be explicit at the time of the constitution of any company or Private Interest Foundation. Additionally, the resident agent must carry out due diligence and verify the identity of the ultimate beneficiaries of each company in which they are designated as such.

Yes, but you need a company or foundation resolution, which must be registered with the Public Registry.

Companies pay an annual fee of US$300.00 as a government tax for their right to exist. Additionally, the resident agent may charge its own additional fee for representing the company.

It is advisable to consider opening a company if you intend to conduct business, either in Panama or in any other country. This allows you to separate business liability, if any, from your personal assets. Additionally, some people choose to use companies to manage real estate properties or bank accounts.

Public Limited Companies and Limited Liability Companies both offer limited liability to their shareholders or partners and have independent legal personality. However, there are key differences between the two:

1. Public Limited Company (SA):
2. Requires a minimum of 3 Directors and 1 or more shareholders.
3. The shareholders of an SA can maintain their privacy since their names are not usually public in the company’s documents.
4. The term “Anónima” (Anonymous) in its name reflects this privacy, as shareholders can remain anonymous to the general public.
5. Limited Liability Company (SRL) or LLC:
6. Requires a minimum of 2 Managers and 2 or more partners.
7. The names of the partners are usually public in the legal documents of the SRL, implying less privacy compared to SA.
8. The SRL is often considered a more transparent entity, which may be a requirement in some jurisdictions where partners operate.

The choice between an SA and an SRL depends on various factors, such as business objectives, desired privacy, and specific legal requirements in the jurisdiction where the company is established.

Approximately 4 to 6 business days.

Panamanian law requires a minimum capital of US$10,000.00. However, it’s important to note that this capital does not need to be fully paid up or released. This offers flexibility to shareholders and allows for strategic and efficient investment deployment.

A Private Interest Foundation pays an annual fee of US$400.00 as a government tax for its right to exist. Additionally, the resident agent may charge its own additional fee for representing the foundation.

Private Interest Foundations are an excellent option for estate planning. If you have various assets like real estate properties or bank accounts, they can be transferred to your foundation, allowing your designated successors to inherit automatically without the need for a costly and lengthy probate process.

Residence permits only grant you the right to live legally in the country, allowing you to stay legally for the period specified by your residence status. To obtain the right to work, a separate work permit is necessary. Some specific residence categories may make you eligible to apply for a work permit; therefore, if you intend to work in the country, it is essential to consider residence options first.

A Multiple Entry Visa is necessary for any foreigner with a pending residence application who plans to travel abroad during that period. If a temporary resident leaves the country without this visa, they could face a fine of US$2,000.00.

After obtaining approval, you can reside in the country for as long as you want. However, if you decide to move out of Panama, it is essential to visit the country at least once every two years; otherwise, your residence could be revoked.

Any former employee who worked for more than 5 years at a Multinational Corporation Headquarters (SEM) has the possibility to apply for permanent residency, as established in Executive Decree 822 of August 2, 2013.

You must have lived in the country continuously for at least 5 years with permanent residence to be eligible for naturalization. This requirement is waived for foreigners who have children with Panamanian citizens or are married to Panamanian citizens, and additionally for those who have nationality from a country with a reciprocity agreement.

Any person or entity, whether national or foreign, has the ability to buy and own property in the country.

Of course, as long as the buyer agrees. In that case, a share sale contract will be prepared, and the Officers and Directors of the Company will be changed as agreed.

The way you decide to hold the property will depend on your preferences. If you choose to register it in your name, you will need to sign a Power of Attorney and have it authenticated at the nearest Panamanian Consulate. However, if you prefer to register the property under a Company or Foundation, we can prepare and sign the documents on behalf of your new entity. Proper coordination is all that is needed.

It’s important to note that in Panama, the government applies various costs and fees related to property transfer, including:

1. Property Transfer Tax: This tax is equivalent to 2% of the value recorded in the sales deed.
2. Capital Gains Tax: An advance of 3% is applied to capital gains based on the sale value.
3. Notary Public Fees: These fees vary but generally range between US$200.00 and US$300.00.
4. Public Registry Fees: The Public Registry fees for processing a property purchase contract may vary depending on the sale value.

It’s important to consult with local authorities and legal professionals for up-to-date and detailed information on the exact costs and procedures related to property transfer in Panama, as fees can change over time and may vary depending on location and other factors.