Although some foreigners living in Panama conduct business in any of the ways described above, foreign businesses, with very few exceptions, exist in the form of corporations. In practice, most businesses operate as corporations, partnerships or sole proprietor.

A business can also be operated by a single owner. These five types of entities can be used for the operation of any type of commercial business. Joint – stock Company (Sociedad en Comandita por Acciones). Ordinary Limited Partnership (Sociedad en Comandita Simple). General partnerships (Sociedad en Nombre Colectivo). Limited Liability Company (Sociedad de Responsabilidad Limitada).Ĭorporations or Stock company (Sociedad Anónima). The Panamanian law recognizes five different forms of legal entities: There are no major restrictions on foreign investment. However, the same business channels are open to domestic and foreign investors alike. The Government is encouraging foreign investment and working to position Panama as the primary destination in Latin America for foreign investors. The Strategic Plan 2009-2014 recognizes its importance and is focused on efforts to attract foreign investment in areas such as logistics service providers of value-added hotel developers and exporters of fruits. Panama Company Incorporation – Doing business in Panama The expansion project of the Panama Canal contributed to maintaining stable economic growth, and the government has announced major projects such as the construction of Metro City, the construction of a residential complex for Curundú (an undeveloped neighbourhood in the centre of the city), and jobs that have already been provided, among others. Panama’s economy is based on the operations of the Panama Canal, tourism, banking, the Colon Free Zone (which is the second-largest free-trade zone in the world after Hong Kong), insurance and ship registration, medical, health, and other businesses. Panama’s unique geographical position and its opportunities to participate in a number of significant projects aimed to further improve its infrastructure continue to attract new investors and visitors to the country each year. With the decrease of income tax for companies and individuals, the government hopes to attract more investors to register a company in Panama.

Panama is located in Central America, situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean to the north and the Pacific Ocean to the south.

Sociedad en nombre colectivo