How to Sell Online in Panama: A Complete Legal and Practical Guide

If you already have your company operating physically, taking the leap to e-commerce can be a great way to scale opportunities. However, before you begin, it's essential to make a few key adjustments:

1. Registering Your Business for E-Commerce

Make sure that your company is registered to operate in the digital environment. This may involve updating your economic activities in the commercial register or applying for an electronic commerce license in accordance with Panamanian regulations.

2. Adapt your Accounting

If you sell products or services online, you must ensure that your accounting system complies with local legal requirements, including the issuance of electronic invoices and the use of a tax printer.

3. Comply with Law 51 of 2008

E-commerce establishments in Panama must respect personal data protection regulations. This means ensuring the security of your customers' information, such as financial data or shipping addresses.

4. Creation of your Online Store

Finally, don't forget to work with web design experts to build a professional, mobile-friendly and secure ecommerce platform. Remember that user experience is key!

Maybe you have a great digital business idea, but you haven't taken the first step to formalizing it yet. In this case, here's what you need to do:

1. Choose the Type of Legal Entity

Decide if you want to operate as a Natural Person or a Legal Person. In Panama, a SA or a company of Limited Liability can offer you tax and legal benefits to protect your personal wealth.

2. Formal Registration

Go to the Public Registry of Panama to establish your company and then request your Notice of Operation from the Ministry of Commerce and Industries.

3. Get your RUC and Register with the DGI

All businesses in Panama, even digital ones, must be registered with the Directorate General of Revenue (DGI) and meet the criteria of fiscal territoriality.

4. Specific Aspects for Ecommerce

Consider factors such as the configuration of payment gateways, logistics for deliveries and a clear policy of terms and conditions in your online store.

Legal compliance is not only mandatory, but it also builds trust in your customers. Some key elements to include are:

• Privacy Policy: Explains how personal data is handled according to Law 81 of 2019.
• Terms and Conditions: Details the rules for purchase, shipping, returns and guarantees.
• Tax Information: Confirm that your prices include or exclude taxes such as the ITBMS.
• Contact Information: Provides a clear and accessible way for customers to contact you in case of problems.

Remember to update this information regularly to reflect any changes in local regulations.

In Panama, all companies, including those that operate online, must have a tax printer approved by the DGI. The main function of this equipment is to issue tax invoices that meet legal requirements. However, there are also alternatives such as electronic invoicing regulated by the DGI, which can be more flexible for digital businesses.

Before choosing between these options, consult with legal and accounting professionals to determine the best solution for your business model.

By creating and formalizing your business for e-commerce in Panama, you not only comply with the law, but you also get advantages such as:

• Access to finance and serious business partners.
• Protection of your personal assets through a Legal Entity.
• Credibility vis-a-vis customers and suppliers.
• Better tax and accounting management to avoid future legal problems.

These benefits make formalization a strategic investment to ensure the long-term success of your online business.