How to Obtain a Multinational Company Headquarters License in Panama

Panama, with its strategic location and business-friendly environment, has become an attractive destination for multinational companies seeking to establish their headquarters in Latin America. The process involves obtaining a Multinational Company Headquarters License, governed by Resolution N°20-17 of September 11, 2017, and modified by RESOLUTION 015-18 of December 28, 2018, of the MULTINATIONAL COMPANY HEADQUARTERS LICENSE COMMISSION.

Requirements for Obtaining a Multinational Company Headquarters License

1. Application Form and Power of Attorney

The journey begins with the submission of the Application Form prepared by the Technical Secretariat of the Licensing Commission. This form should be duly completed and accompanied by a power of attorney granted to a qualified lawyer of the Republic of Panama, authenticated before a Notary Public.

2. Articles of Incorporation

The Articles of Incorporation of the applicant company, specifying its main objective as establishing itself as the Headquarters of a Multinational Company under Law 41 of 2007, are essential. Existing companies must modify their Articles of Incorporation to align with this objective.

3. Affidavit of the Legal Representative

The legal representative must provide an affidavit expressing the company's desire to establish its headquarters in Panama. This document should detail the Business Group to which it belongs, the specific services it will provide, and confirm compliance with all legal requirements.

4. Consolidated Financial Statements

Duly audited or certified Consolidated Financial Statements of the Business Group, apostilled, and translated into Spanish if necessary, must be submitted. The assets of the Business Group should be equal to or greater than two hundred million US dollars.

5. Bank Reference Letter

The applicant company, or its parent company, must furnish a bank reference letter.

6. Certification of Shareholding

A certification, authenticated before a Notary Public, indicating the shareholding of the companies in the Business Group, is required.

7. Regulatory Entity Opinion

If the company engages in regulated activities, a note from the relevant regulatory entity expressing its opinion on the services is mandatory.

8. Organizational Chart

An organizational chart showcasing the relationship with the Business Group, affiliates, subsidiaries, or associated companies is essential.

9. Initial Capital Requirement

For companies establishing a Headquarters in Panama, a minimum initial capital of two million US dollars is necessary. This requires submission of a Cash Flow Report and a certification of shareholding.

10. Additional Requirements for Companies Operating in Panama

Companies already operating in Panama must submit their operating license, audited financial statements, and the latest Income Tax Declaration.

Document Submission Requirements

All documents must be submitted in their printed original form, along with one digital copy containing scanned information. Key points to remember include:

• Documents from abroad must be legalized or apostilled.
• Non-Spanish documents must be translated by an Authorized Public Translator in Panama.
• All documentation must be supported in US dollars.
• Detailed information about the applicant company and its legal representative is mandatory.

Important Notes and Considerations

• The application form must be complete, signed by the legal representative, and accompanied by all required documentation.
• The Licensing Commission may conduct investigations to verify the information.
• The Commission reserves the right to request clarifications or additional information before granting the license.

Conclusion: Your Gateway to a Strategic Headquarters in Panama

Navigating the process of obtaining a Multinational Company Headquarters License in Panama requires careful attention to detail and compliance with the established guidelines. At Legal@Work, our experienced legal professionals specialize in facilitating this complex process, ensuring a smooth journey for your company.

For personalized assistance and expert guidance, contact us today. Let us be your partner in unlocking the doors to a strategic headquarters in Panama, where opportunities abound for multinational companies ready to make their mark in the heart of Latin America.

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Form:

LS-RG-001 Solicitud de Licencia SEM