How to Open a Company in Panama to Sell Online: A Definitive Guide

Panama It is an attractive destination for entrepreneurs interested in ecommerce. Here are a few main reasons for this:

• Tax advantages: International companies can benefit from reduced taxes as long as their revenues are generated outside of Panama.
• Strategic location: Panama is located between North and South America, which facilitates access to key markets.
• Modern e-commerce regulations: Law 51 of 2008 makes it possible to operate e-commerce platforms with legal recognition.
• Ease of incorporation: The procedures for registering a company are efficient and transparent for the most part.

1. Choose the Type of Company: The most common options are Sociedad Anónima (S.A.) or a Limited Liability Company (S.R.L.). The choice will depend on your business objectives and needs.
2. Register Your Company: You must submit legal documents, such as the notarial act and the corporate certificate, in the Public Registry of Panama.
3. Get a Business License: Depending on the type of business, you'll need a license issued by the Ministry of Commerce and Industries (MICI).
4. Open a Bank Account: Working with a local attorney can make it easier to navigate the due diligence requirements of Panamanian banks.
5. Sign up for the DGI: Registering your company with the Directorate General for Revenue (DGI) is essential for tax issues.

When it comes to operating an online business in Panama, complying with legal regulations is essential to avoid sanctions. Some key points include:

• Data Protection: Law 81 of 2019 regulates the handling of personal data, which is crucial if you plan to manage sensitive customer information.
• Payment Platforms: Requesting integration of methods such as PayPal or Stripe can be a challenge due to restrictions on Panamanian banking.
• Audit: Although Panama offers tax advantages, it's important to properly declare your income according to local and international regulations.

Opening a bank account in Panama may seem challenging due to compliance requirements (known as' compliance '). Here are some tips:

• Clear documentation: Make sure you have all the necessary documents, including international bank references and shareholder details.
• Alternative payment methods: Although Panamanian banks are traditionally reluctant to process international payments online, you can look for solutions such as local or international payment gateways that support startups.
• Professional support: Work with a specialized lawyer or manager to expedite the process.

Operating an online business from Panama has multiple Pluses, but it also presents challenges. Let's evaluate both aspects:

Advantages:

• Easy access to international markets.
• Significant tax reduction if your income is generated outside of Panama.
• Modern infrastructure and advanced digital support.
• Foreign income is not taxed in Panama.

Challenges:

• Strict banking regulations that can delay the opening of accounts.
• Additional requirements for integrating international payment gateways.
• Complexity in the initial registration if you don't have an expert advisor.

Despite these challenges, having the right support can turn them into opportunities to automate and optimize your operations.