Unlocking Business Opportunities by Becoming a Promoter

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In the dynamic landscape of international business, companies are constantly seeking strategic advantages to thrive in the global market. One such advantage is the establishment of businesses in free zones, which offer a range of benefits, from tax incentives to streamlined regulatory processes. Panama, with its strategic location and business-friendly environment, has emerged as a prime destination for companies looking to capitalize on these advantages through the establishment of zona francas.

Understanding Zona Francas in Panama

Zona Francas, or free zones, in Panama are regulated by the Ministry of Trade and Industries through the General Directorate of Free Zones. The process of establishing a business in a free zone involves several steps and requires comprehensive documentation. Let's delve into the key requirements outlined by the National Commission of Free Zones - Technical Secretariat:

1. Power of Attorney and Request: A crucial initial step involves appointing a suitable lawyer and submitting a power of attorney and request to the Technical Secretariat.
2. ‍Personal Identification: Applicants, whether individuals or legal entities, need to provide authenticated copies of personal identity cards or passports, as applicable.‍
3. Legal Entity Documentation: Submission of public deeds containing the social agreement establishing the legal entity, along with any modifications and powers granted.‍
4. Certificates and References: A standardized certificate with powers from the Public Registry, a bank reference, and at least two commercial references are mandatory.
5. ‍Shareholder Certification: The secretary or treasurer of the company must certify the shareholders and final beneficiaries of the company.‍
6. National Peace and Security Certification: Applicants must obtain a current national peace and security certification from the General Directorate of Revenue.‍
7. Feasibility Study: A comprehensive feasibility study signed by the applicant or legal representative, covering objectives, activities, organizational structure, location, property details, financial projections, and project execution schedule.‍
8. Land Use Authorization: An essential step involves obtaining authorization from the Ministry of Housing on land use and zoning.‍
9. Attention to Detail: All documentation must be presented in both original physical format and digitized on ten USB flash drives.‍
10. Notarization: If the principal does not appear in person, a notarized special power is required.

Streamlined Procedures and Legislative Framework

It's important to note that these procedures are free of administrative fees, providing an added incentive for businesses. The regulatory framework governing zona francas in Panama is outlined in various legislative acts, including Law No. 32 of April 5, 2011, and subsequent executive decrees.

Establishing a business in a zona franca in Panama can be a game-changer for companies looking to optimize their operations and gain a competitive edge. The strategic location, coupled with a favorable business environment and robust legal framework, makes Panama an attractive destination for international business expansion.

For personalized assistance in navigating the intricacies of establishing your business in a zona franca, our experienced legal team is ready to guide you through the process. Contact us today at (+507) 560-0600 ext. 5896, 5777, or visit our website www.mici.gob.pa for more information. Let us help you unlock the potential of zona francas in Panama for your business success.

Reference legislation: Law No. 32 of April 5, 2011, regulated by Executive Decree No. 1 of January 4, 2012, and Executive Decree No. 62 of April 11, 2017, modified by Executive Decree No. 175 of July 18, 2011, Executive Decree No. 16 of February 9, 2012, Law No. 125 of December 31, 2013, Law No. 66 of October 17, 2017, and Law No. 52 of October 17, 2018.