Doing Business with Panama

Exporting goods to Panama involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Panama’s import regulations and product standards.

2. Identify Your Product’s HS Code

   • Determine the Harmonized System (HS) code to understand tariffs and regulations.

3. Prepare Documentation

   • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

4. Check Tariff and Non-Tariff Barriers

   • Verify any tariffs and ensure compliance with Panama’s non-tariff measures.

5. Select a Reliable Freight Forwarder

   • Choose a logistics provider experienced in shipping to Panama.

6. Comply with Labeling and Packaging Regulations

   • Ensure your products meet Panamanian labeling and packaging standards.

7. Arrange for Insurance

   • Secure insurance to cover potential shipping risks.

8. Submit Customs Declaration

   • Work with your freight forwarder to submit the necessary customs declaration.

9. Pay Applicable Duties and Taxes

   • Calculate and pay any required import duties and taxes.

10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

• National Customs Authority of Panama
  • Website: Customs Authority

Importing goods into Panama involves several key steps. Here’s a detailed guide:

1. Research Import Regulations

   • Understand Panama’s import laws and product-specific regulations.

2. Obtain Necessary Licenses

   • Check if your products require special import licenses or permits.

3. Classify Your Goods

   • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.

4. Prepare Documentation

   • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.

5. Choose a Customs Broker

   • Hire a licensed customs broker to assist with the import process.

6. Comply with Labeling and Packaging Standards

   • Ensure products meet Panamanian labeling and packaging requirements.

7. Submit Customs Declaration

   • File a customs declaration with the National Customs Authority of Panama.

8. Pay Duties and Taxes

   • Calculate and pay any applicable import duties and taxes.

9. Arrange for Transportation and Delivery

   • Coordinate with a logistics provider to transport goods to their final destination.

10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

• National Customs Authority of Panama
  • Website: Customs Authority

Incorporating a company in Panama involves several key steps. Here’s a detailed guide:

1. Choose a Business Structure

   • Decide on the type of company, such as a Corporation (S.A.) or Limited Liability Company (LLC).

2. Reserve a Company Name

   • Ensure the name is unique and reserve it with the Panama Public Registry.

3. Draft the Articles of Incorporation

   • Prepare the founding documents, including details on directors and shareholders.

4. Submit Incorporation Documents

   • File the Articles of Incorporation with the Panama Public Registry.

5. Obtain a Business License

   • Apply for a commercial license from the Ministry of Commerce and Industry.

6. Register for Taxes

   • Register with Panama’s tax authority for a Tax Identification Number (RUC).

7. Open a Bank Account

   • Open a corporate bank account for financial transactions.

Costs

• Registration Fee: Approximately $250 to $500 USD.
• Business License Fee: Varies based on business activities.

Key Contacts

• Panama Public Registry
  • Website: Public Registry
• Ministry of Commerce and Industry
  • Website: Ministry of Commerce

Setting up a manufacturing plant in Panama involves several key steps. Here’s a detailed guide:

1. Conduct a Feasibility Study

   • Analyze market demand, location, and resources.

2. Choose a Business Structure

   • Decide on the type of business entity, such as a Corporation or LLC.

3. Register the Company

   • Register your company with the Panama Public Registry.

4. Secure Financing

   • Arrange funding through loans or investors.

5. Select a Location

   • Choose an industrial area with access to infrastructure and resources.

6. Obtain Necessary Permits and Licenses

   • Apply for construction permits, environmental approvals, and industry-specific licenses.

7. Design and Construct the Facility

   • Hire architects and contractors to design and build the plant.

8. Purchase and Install Equipment

   • Acquire machinery and ensure it meets safety and operational standards.

9. Hire and Train Employees

   • Recruit skilled workers and provide necessary training.

10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

• Panama Public Registry
  • Website: Public Registry
• Ministry of Commerce and Industry
  • Website: Ministry of Commerce

Registering a trademark in Panama involves several steps. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique by searching existing trademarks in Panama.

2. Prepare Your Application

   • Gather necessary details, including the trademark design and the list of goods/services it will cover.

3. Submit the Application

   • File your application with the Directorate General of the Industrial Property Registry (DIGERPI).

4. Examination Process

   • The application will be examined for compliance and potential conflicts with existing trademarks.

5. Publication for Opposition

   • If approved, the trademark is published for a period during which others can oppose it.

6. Receive Registration Certificate

   • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

• Application Fee: Approximately $100 to $150 USD.

Key Contacts

• Directorate General of the Industrial Property Registry (DIGERPI)
  • Website: DIGERPI

Resolving commercial disputes in Panama involves several steps. Here’s a detailed guide:

1. Consult Legal Counsel

   • Engage a lawyer experienced in Panamanian commercial law for guidance.

2. Attempt Negotiation

   • Try to resolve the dispute amicably through direct negotiation with the other party.

3. Mediation

   • Consider mediation with a neutral third party to facilitate a resolution.

4. Arbitration

   • Use arbitration for a binding resolution if both parties agree. Panama has a well-established arbitration framework.

5. Litigation

   • If other methods fail, file a lawsuit in the appropriate court. Prepare for a formal legal process.

6. Enforcement of Judgments

   • Ensure the decision is enforced through the relevant authorities.

Costs

• Legal Fees: Vary depending on the complexity and length of the dispute.
• Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

• Judicial Branch of Panama
  • Website: Órgano Judicial
• Panama Arbitration Center
  • Website: Centro de Conciliación y Arbitraje de Panamá

When considering business in Panama, it’s important to understand various factors:

Social and Cultural Factors

• Language: Spanish is the official language; English is commonly used in business.
• Business Etiquette: Punctuality is valued, and building personal relationships is important.

Political Factors

• Government: Stable constitutional democracy.
• Regulations: Business-friendly environment with incentives for foreign investment.

Economic Factors

• Currency: U.S. Dollar (USD) is used alongside the Panamanian Balboa (PAB).
• Investment Opportunities: Strong sectors include logistics, banking, and tourism.

Foreign Exchange

• Exchange Rate: Fixed with the U.S. Dollar (1 PAB = 1 USD).
• Regulations: Few restrictions on currency exchange.

Rule of Law

• Legal System: Based on civil law; provides a stable framework for business operations.
• Intellectual Property: Protections are in place and align with international standards.

Infrastructure

• Transport: Well-developed infrastructure with the Panama Canal as a major trade route.
• Utilities: Reliable access to electricity and water.

Key Contacts

• Panama Trade & Investment Agency
  • Website: ProPanama
• Ministry of Commerce and Industry
  • Website: Ministry of Commerce