Local Business Services

Incorporating a business in Panama involves several legal requirements. Here’s a breakdown of the key steps and documents needed:
 

1. Choose a Business Structure
   - Decide on the type of entity, commonly a corporation (S.A.) or a limited liability company (LLC).

2. Reserve a Company Name
   - Submit a name reservation request to the Public Registry. The name must be unique and comply with local naming conventions.

3. Draft the Articles of Incorporation
   - Prepare the Articles of Incorporation, which must include:
     a. Company name
     b. Purpose of the business
     c. Capital structure
     d. Shareholder information
     e. Governance structure

4. Designate Directors and Officers
   - Appoint at least three directors (who can be non-residents). You also need to appoint a resident agent, who must be a Panamanian             citizen or a local legal entity.

5. Register the Company
   - File the Articles of Incorporation with the Public Registry, along with any required documents, such as:
     a. Copy of identification (passport) of the shareholders and directors
     b. Proof of the address of the business
     c. Payment of registration fees

6. Obtain a Tax Identification Number (RUC)
   - Register with the Directorate General of Revenue (DGI) to get a tax identification number.

7. Open a Bank Account
   - Open a corporate bank account in Panama, providing the necessary documentation (e.g., incorporation documents, identification).

8. Obtain Necessary Licenses and Permits
   - Depending on your business activities, apply for any required operational licenses or permits from local authorities.

9. Register with the Social Security Fund (CSS)
   - If hiring employees, register your business with the Social Security Fund for labor-related obligations.

10. Annual Requirements
   - Maintain compliance by filing annual tax returns and other necessary reports.

Additional Considerations
- Legal Assistance: It’s advisable to consult with a local attorney or a business advisor to navigate the incorporation process effectively          and ensure compliance with all legal requirements.
- Cost Considerations: Be aware of the costs associated with incorporation, including registration fees, legal fees, and annual                        maintenance fees.