Several types of business activities, among which the ones in the financial sector, are licensed activities in Panama. Banks, insurance and reinsurance companies, as well as others, must obtain a business license in Panama orauthorization, as applicable, from the relevant authorities.
For some types of activities, a trade license in Panama is required. These special permits and licenses are a confirmation of the fact that a certain business operates according to law, and according to the requirements/standards in a certain regulated industry.
Our Panama company formation agents can provide investors with complete information on the activities that require approvals and licenses as well as those that are exempt from this procedure. In this article, we will list the most important important licensed activities.
Investors who cannot be present during the entire Panama offshore company formation procedure, which will also include the submission of the application for the needed license, can rely on the services offered by one of our agents.
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Activities that require approvals and licenses in Panama
As in other jurisdictions, financial and banking activities in Panama are subject to approvals and licenses. We list some of these below:
- Operating licenses: banks and trust companies are to obtain business permits in Panama from the Superintendency of Banks.
- Authorizations: insurance and reinsurance companies, insurance and reinsurance brokers need to obtain an authorization from the Superintendency of Insurance and Reinsurance.
- Licenses for brokers: securities brokers apply for their specific business permits in Panama with the National Securities Commission.
- Others: product registration and approval are obtained from the National Authority of Food (for new imports).
As seen above, two industries that are regulated and for which a business license in Panama is required are the financial and the food and beverages sectors. For the latter category, apart from having to obtain permission for new products, all food and beverages sold in bottles, cans, or other types of packaging must be registered with the Ministry of Public Health.
A financial services license in Panama is mandatory for businesses that perform certain types of activities, however, companies will also need to comply with other requirements, such as having a local registered office. There is no mandatory requirement for a minimum capital in most cases. An exemption does apply to leasing services.
Our Panama incorporation specialists can provide investors with more details about the specific requirements set forth by the authorities.
We not only assist business owners interested in assistance for licensing purposes. We are also able to answer questions about how to obtain citizenship in Panama. This is possible for those foreign nationals who have been living in the country for at least five years. The minimum number of years is lower in the case of those married to a Panamanian national or those who have Panamanian children.
If you are not yet ready to apply for citizenship, but are just starting to consider your options for residency in Panama, our team will give you detailed information about the current residency programmes, your option to retire to the country or become a resident based on an investment made in Panama. You can reach out to us as needed.
The notice of operation in Panama
Another type of permit can be included on the list of business permits in Panama. This is called the “notice of operation” is also to be obtained by companies, partnerships, and individuals in Panama that wish to engage in commercial or industrial activities. This is mandatory for most investors who wish to set up a company in Panama, most notably those who will engage in commercial and industrial activities. The notice is applied by for as such:
- the request form: the applicant fills in a form that includes the name of the company as well as the activities of the business, among other details.
- declaration: the request form is accompanied by a sworn declaration, which is attached to the form.
- others: other fees may be applicable depending on the type of activity; there are two types of activities: commercial and industrial.
Some types of activities in Panama are exempt from the notice of the operation. These include companies engaged in agricultural or handicraft activities as well as those companies that produce homemade goods and have no more than five employees. Free trade zone companies are also exempt from this notice of operation and so are non-profits organizations, for example, those involved in charity work.
If you wish to engage in import/export activities, our team can help you open a company in Panama and find out what are the needed steps to engage in these types of activities. Moreover, we can give you details about the need to apply for a trade license in Panama.
The business licensing process
All companies that operate within Panama City need to be properly licensed. Included here are also small companies, such as those that are home-based. The following two steps are relevant for obtaining a business license in Panama:
- Register with the authorities: this differs according to the type of business license in Panama that you will be applying for (the requirements are different for real estate brokers in comparison to cosmetologists, for example);
- Apply for the Panama City business license: once again, we underline the fact that this particular application is for companies that operate within the city limits.
A Panama City business license application will be forwarded for approval within several key departments among which planning and zoning, the building department, the environmental compliance department, and the fire department.
Once you submit the application for a business license in Panama from the City council, the authorities will typically take several days to review it. The following should be taken into account:
- The authorities may need between 7 and 10 days to provide comments and a final license approval;
- For the years 2024-2025, the administrative fee of $25 has been abolished; our team can give you updates as needed on other fees;
- Those who have a merchant license issued by the Business Service Department will remit a 1% merchant fee.
Different requirements apply to individuals who will engage in door-to-door selling or those who will set up yard and garage sales. Registering as a peddler (door-to-door salesperson) is done according to Panama City’s Municipal Code.
The guide presented below by our Panama company formation experts refers to those businesses within the city limits.
Complete solutions for company formation in Panama
Our team of Panama company formation agents can assist investors who need to apply for the notice of operation. We can also help with Panama bank account opening.
Applying for a business license in Panama can be easily handled with the help of our team. We can give you complete details about the application process, the requirements, renewals, and the payment of fees.
Our multi-service firm can also answer questions about other matters, such as immigration to Panama. Our specialists can guide foreign investors who wish to enter the country in order to apply for a license for an already existing business that they own (partially or fully), or who wish to remain in the country for the purpose of starting a new company. We provide personalized information and advice.
Contact our Panama company formation agents for complete information about the licensed activities and assistance for obtaining these licenses.