Investment License in Panama: Obtaining a License | Law&Trust International

Investment license in Panama

Obtaining investment license in Panama is necessary for every enterprise planning to conduct financial activities in and beyond this jurisdiction.

The state is an offshore zone for many types of non-residents due to low tax rates and transparent regulations of the legislation.

Permission for investment activity in Panama gives the businessman the right to provide the following services:

  • Managing own funds and contributions of the clients.
  • Control of shares and finances intended for all types of property.
  • Intermediation in conducting transactions between two legal entities or natural persons.
  • Mediation in creating and issuing of invoices.
  • Granting and maintaining all types of credits.
  • Leasing and brokerage services.

Thus, licensing in the field of investment is mandatory for banks, pawnbroker's offices, insurance and brokerage offices, consultantsv regarding crediting, microfinance organizations and miscellaneous institutions.

Each of the above structures can obtain investment license of "A" type. It is indicated as Licencia Commercial Tipo A in the documentation of Panama.

Investment license for company in Panama: terms and conditions

Before submitting application for obtaining permission for financial activities, it is necessary to organize corporation in the territory of Panama. Opening of the branch from the main enterprise is not enough, because the office should be fully-fledged and multi-structural one. The main processes will be conducted from it to control the financial turnover of the whole consolidated group.

All the originals of constituent documents, the charter and extracts from the protocol should be kept in the archives of the building. It is also necessary to register the company in the single state register of Panama for taxpayers.

Issuance of the certificate for investment activities is carried out by the Ministry of Trade and Industry of the country. However, specialized registrar is engaged in consideration of the application and the package of documents, and the application falls within the constituent structures only after his approval.

Among the list of basic documents

that will be required in the package of official documents, there are the following:
  • Detailed business plan for the corporation and estimate of costs that are planned to be contributed for the development of the structure in Panama;

  • Copies of the constituent documents, as well as the charter of the company and the protocol;

  • Confirmation of company registration in Panama (certificate with legal address), as well as contact details for communication with the head office;

  • Copies of personal documents of directors and beneficial owners of the enterprise, translated into the state language and certified by the notary according to all rules and regulations;

  • Extract from the bank confirming the financial status of the applicant.

All companies that have successfully obtained license for investment activities are exempt from taxation. The obligation to report on income for a particular period (usually a quarter or year) is retained.

The cost of investment license in Panama

  • The price for the complex of services and operations for obtaining permission for financial activities consists of the following items:

    - Registration of the company in Panama and contribution of the authorized capital (the amount of contribution depends on the scope of activity of the firm and the list of its working instruments);

    - Opening account with the local bank (the amount is announced after selecting a particular bank);

    - State and commission fees for filing and processing of the application;

    - Making payment for the license, in case of approval of the application of the applicant, the amount is 2% of the amount of the authorized capital (the transfer is carried out annually at the beginning of the accounting period).

    It is possible to clarify detailed information on each of the items by phones and on the website of Law&Trust.

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