A corporation is not enough to start operations in Panama
While it is true that the first step is the incorporation and registration of the company in the Public Registry of Panama, this is only the beginning of the process. Before starting operations, it is essential to follow a series of steps to ensure the company follows local laws and regulations. The essential steps are as follows:
- Formal registration at the General Directorate of Income (“DGI”). The first step after the incorporation of the company is its formal registration at the DGI to obtain a Unique Taxpayer Registration Number (“RUC”) and the user password to enter the e-Tax 2.0 system (this password in Panama is known as Tax Identification Number – NIT). This registration is essential for the income tax return and the payment of other taxes.
- Obtain Notice of Operation. Once the RUC is obtained, the Notice of Operations must be obtained. This document is issued by the Ministry of Commerce and Industries (MICI) and allows the company to operate legally in the country. To get it, you must complete an online application through the Panama Emprende portal, providing details about the company’s economic activity. In this place, the operations will be developed, and who will hold the legal representation of the company.
- Registration with the Social Security Administration (“CSS”). If the company hires workers, it must register with the CSS. This step is crucial to ensure workers can access social security benefits, including pensions and health insurance.
In addition to registering the company as an employer with the CSS, it is essential to comply with current labor regulations. This includes compliance with the minimum wage and especially regulations on working hours and breaks. It is also advisable to establish clear internal policies for human resources management.
- Opening a business bank account. Opening a business bank account is essential for professionally managing the company’s finances. The requirements for opening an account may vary from bank to bank. Still, they generally include the corporation’s certificate of registration, the Notice of Operation, and the identification of the company’s directors and officers.
- Obtaining Specific Permits and Licenses. Depending on the nature of the corporation’s business activity, obtaining additional permits and licenses may be necessary. For example, if the company operates in the food and beverage industry, it will need sanitary permits. It is essential to research and comply with all regulations specific to the industry in which you will be operating.
- Trademark registration and Intellectual Property. If the corporation plans to use a specific trademark or develop intellectual property, it is advisable to register these assets with the Directorate General of the Industrial Property Registry (“DIGERPI”). This will protect the company’s rights over its trademarks, patents, and other intellectual assets.
Incorporating a company is only the first step. Complying with the requirements and obtaining the necessary permits guarantees that the company will operate without legal setbacks. At Alcogal, we are committed to providing comprehensive legal advice to guide our clients through every step of this process, ensuring compliance with all regulations and facilitating the success of their business.
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