Panama's New Fast Business Start Up Law
Author: Rich Steven
Date Created: Feb 8, 2007 - 1:05:24 PM
NEW SPEEDY BUSINESS START UP LAW
A few months ago, I wrote an article entitled "How to Start a Business in Panama" which was first published in The Visitor/El Visitante. I summarized the long process involving several national and local government offices in order to start a business in Panama.
Soon all of that will change. New Law: January 11, 2007 embarked a new era for businesses in Panama.
On that day, President Torrijos signed a new law (Law 5 of 2007) eliminating all of the numerous licenses, permits, and bureaucracy required to open a new business. This law becomes effective on July 11 when the entire business licensing process will go online.
PanamaEmprende is the name of this online system that allows people to create new businesses via the Internet. In addition, this new system allows all required fees paid by credit card online. Experts estimate that it now takes 52 days to start a new business in Panama.
PanamaEmprende will do it in just 20 minutes.Instead of some new businesses having to take 180+ licensing steps, this new system can do it with just a few steps. Every unregulated new business can quickly open for business using this online service.
This includes: retail stores, restaurants, car rentals, auto repair shops, distributors, wholesalers, just to name a few.Regulated businesses can also use this system once their regulators have approved them. These include: law offices, banks, insurance companies, contractors, gun shops, and energy producers.
The new system eliminates the following requirements that current businesses must comply with:o Commercial Licenseo Health Operational Permitso New Tax Account (tax id number) from Ministry of Economics & Finance and local Municipalitieso All local government approvalso IPAT (Tourism Agency) new tax accounto New Social Security Employer number Panama will become the fastest country in all of Latin America in order to start a new business when this new law takes effect.
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