{"id":234503,"date":"2024-04-04T05:10:52","date_gmt":"2024-04-04T10:10:52","guid":{"rendered":"https:\/\/legalsolutionspanama.com\/blog\/how-to-create-a-company-in-panama-as-a-foreigner\/"},"modified":"2024-04-12T09:14:29","modified_gmt":"2024-04-12T14:14:29","slug":"how-to-create-a-company-in-panama-as-a-foreigner","status":"publish","type":"post","link":"https:\/\/qa.legalsolutionspanama.com\/en\/blog\/how-to-create-a-company-in-panama-as-a-foreigner\/","title":{"rendered":"How to Create a Company in Panama as a Foreigner?"},"content":{"rendered":"

In previous posts we have already discussed how to <\/span>create a company in Panama <\/span>in a quick and easy way. Now we want to be more precise as to what one should do if one is a foreigner and wants to create a company in Panama.<\/span><\/p>\n

The first thing to keep in mind is that the Panamanian Constitution explicitly mentions that retail commerce, defined as \"the sale to the consumer or the representation or agency of production or mercantile companies or any other activity that the law classifies as pertaining to such commerce\", can only be exercised by:<\/span><\/p>\n

1 Panamanian nationals;<\/span>
\n<\/span>2 Persons who, at the time the <\/span>Constitution <\/b>becomes effective, are naturalized and married to or have children with Panamanian nationals;<\/span>
\n<\/span>3 Naturalized persons, without being in the condition of the previous point, after 3 years of obtaining the definitive letter \u00a0 \u00a0 \u00a0 4 Any juridical person, national or foreign, and natural foreign persons that were legally engaged in retail trade at the effective date of the law of the <\/span>Constitution<\/b>;<\/span>
\n<\/span>5 Legal entities of Panamanians or foreigners with the right to exercise it individually and those that have been exercising <\/span>retail trade when the <\/span>Constitution <\/b>came into force.<\/span><\/p>\n

In other words, the Constitution is clear that only Panamanian nationals may engage in retail trade, although it provides the possibility that any legal entity (whether national or foreign) may do so.<\/span><\/p>\n

Therefore, if you are looking to create a company as a foreigner, you can do it, you have no legal limitation.<\/span><\/p>\n

If you wish to exercise your activity through a company, you must either create a company in Panama or register the company you have created abroad in Panama. This second option has its advantages and disadvantages. However, for the moment we want you to know that the registration of foreign stock companies is a possible way to establish a business in Panama as a local branch.<\/span><\/p>\n

Requirements for the registration of foreign stock corporations Panama<\/b><\/h2>\n
    \n
  • The branch office must have the same name as the parent company.<\/span><\/li>\n
  • It must be adapted to the type of company existing in Panama, if your company is a shareholding company, it will be registered in Panama as a Stock Company; but if the same is created by a Liability Company, it will be registered as a Limited Liability Company.<\/span><\/li>\n
  • It is important to bring with you from the country of origin, the Articles of Incorporation and the Public Registry Certificate with a term of less than three (3) months of validity showing that it has not been recently modified, all apostilled.<\/span><\/li>\n<\/ul>\n

    Requirements for the creation of a company in Panama<\/b><\/h2>\n

    The other option, and the one that is usually the most practical, is the creation of a company in Panama, whether it is a Corporation or a Limited Liability Company. For this purpose, you need to have an Articles of Incorporations in place that will reflect the agreed terms and conditions. This agreement must be registered in the Public Registry, and this document will also be effective against third parties.<\/span><\/p>\n

    What should the Articles of Incorporation contain? and If I am a foreigner, can I be a shareholder or director?<\/b><\/h2>\n

    According to the provisions of Panamanian Law, the Articles of Incorporation of Corporations or Companies must contain, among other things:<\/span><\/p>\n

      \n
    • The name of the corporation.<\/span><\/li>\n
    • The name and address of the subscribers.<\/span><\/li>\n
    • The object or objects to which the company will dedicate<\/span>
      \n<\/span>itself<\/span><\/li>\n<\/ul>\n
        \n
      • Capital stock, amount, <\/span>distribution of shares and classes of shares.<\/span><\/li>\n
      • The duration of the partnership, which may be perpetual.<\/span><\/li>\n
      • The names and addresses of directors and officers.<\/span><\/li>\n
      • The name and address of the resident agent (usually the<\/span>
        \n<\/span>lawyer or law firm that incorporates and registers the<\/span>
        \n<\/span>Articles of Incorporation)<\/span><\/li>\n<\/ul>\n


        \n<\/span>As a foreigner you can be a shareholder or dignitary, you only have to provide the lawyers with a copy of your passport and identification document. In case you are the shareholder you must provide information such as: address, contact information, company's activity, commercial and banking references.<\/span>
        \n<\/span>Once the Articles of Incorporation are registered the owner of the company must decide whether to obtain a Notice of Operations (Corporations that do not carry out commercial or industrial activities within Panama (representative offices) are not required to obtain commercial licenses to operate outside the territory of the Republic of Panama). In case you are going to open operations, hire employees in Panama, have offices, you must register in the Municipality of Panama.<\/span><\/p>\n

        If you are interested, do not hesitate to <\/span>contact <\/span>us at info@legalsolutionspanama.com. We will be your ally in Panama.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        Company in Panama registration process, learn how to do start as a foreigner<\/p>\n","protected":false},"author":17,"featured_media":234624,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1113],"tags":[1231,1235,1114,1233,1236,1232,1239,1237,1238,1234],"class_list":["post-234503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publications-en","tag-article-of-incorporations","tag-capital-stock-in-panama","tag-company-in-panama","tag-corporations-in-panama","tag-directors","tag-limited-liability-company-in-panama","tag-owner","tag-resident-agent","tag-shareholders","tag-stock-company"],"yoast_head":"\nHOW TO CREATE A COMPANY IN PANAMA AS A FOREIGNER?<\/title>\n<meta name=\"description\" content=\"How to create a company in Panama as a foreigner. 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