If you are interested in Panama company incorporation in the financial sector, licensing will be mandatory. To obtain an EMI/PSP license in Panama, for companies involved in e-money issuance and transactions and those that process payments, in most cases business owners apply for a license with the Superintendency of Banks of Panama. Our team briefly outlines the requirements in this article and can assist with more details upon request.
| Quick Facts | |
|---|---|
| Assistance with EMI/PSP license applications in Panama | Guidance and assistance during the licensing process |
| Assistance for those who open an EMI/PSP company in Panama | Our team can give you complete details on the steps required to open a company that will be licensed as an EMI or PSP |
| Types of companies that can apply for the EMI/PSP license | LLC and SA are the commonly used business forms |
| Activities licensed under the EMI | Holding and managing electronic money. Not considered a bank |
| Activities licensed under the PSP | Activities related to offering payment processing services to clients |
| EMI activities included in a PSP license | The PSP activiries are not the same activities as the EMI-licensed ones |
| PSP activities included in an EMI license | The EMI company can generally process electronic money payments |
| EMI/PSP license issuing authority in Panama | The Ministry of Commerce and Industries along with the financial regulator in Panama, the Superintendency of Banks of Panama (SBP) |
| Special nationality conditions for investors who open an EMI/PSP company in Panama | Not applicable |
| Licensing for Belize companies | Accoridng to law |
| Licensing for non-Belizean entities | Also applicable, subject to licensing |
| Other approvals before applying for an EMI/PSP license in Panama | For Panama-based companies, be lawfully registered as a local legal entity. |
| Conditions for the company’s financial resources | A minimum authorized capital requirement can apply. |
| Special requirements | Compliance with the reporting requirements and other standards for handling money for clients. |
| AML/CFT obligations | These types of companies must observe Anti Money-Laundering/Counter-Terrorism Financing laws |
Table of Contents
How to open an EMI/PSP company in Panama
Entrepreneurs who open an electronic money institution (EMI) company or offer solutions as a payment services provider (PSP) are subject to the same rules when they open a company in Panama in terms of general incorporation requirements. The difference lies in the post-registration requirements that involve obtaining a license issued specifically for the financial services they will be offering.
The following general steps are useful to those who will open an EMI/PSP company in Panama:
- Select the legal entity (the limited liability company and the corporation being the most commonly used business forms and also suitable for the purpose of opening an EMI or PSP company in Panama);
- Decide who the shareholders and directors will be and where the company’s registered office will be located (this must be based in Panama);
- Select an available company name (the chosen name cannot infringe on those that are already in use by registered Panamanian companies);
- Prepare the incorporation documents (these include the Memorandum and Articles of Association, along with others);
- Register the company with the Public Registry of Panama. The mandatory step to obtain an EMI/PSP license in Panama can take place once the legal entity is registered.
Our Panama incorporation specialists can provide more in-depth information on the aforementioned steps. We also list the main taxes for companies below:
- 25% corporate income tax, unless the company is subject to the alternative rate;
- 1.17% on gross taxable income, if the company is subject to the alternative minimum tax;
- A standard rate of 7% value-added tax applies, with some exceptions.
How to obtain an EMI/PSP license in Panama
In Panama, the electronic money institution and/or the payment service provider offer solutions that fall under the scope of the money service businesses and can be licensed as a money remittance operator. The Superintendency of Banks of Panama is the supervisory and governing authority in charge of licensing and maintaining information on these types of corporations.
In addition to being under the supervision of the Superintendency of Banks of Panama, money remittance operators must also adhere to other rules and regulations. Licensing is possible when the conditions of the Superintendency of Banks of Panama and those of the Ministry of Commerce (in some cases) are satisfied.
We list below some main issues to consider for those who want to obtain an EMI/PSP license in Panama:
- Present a sound business plan for the EMI or PSP company in Panama;
- Provide information on the company’s key members and directors. It may be a requirement for at least one director to have a residence permit in Panama;
- Provide proof of sufficient capital for the company and offer, as required, financial documents for the business;
- As required, prove that the company shall observe the anti-money laundering laws.
Assistance for EMI/PSP companies in Panama
Our team can provide complete guidance to those who are interested in opening a company that will function as an electronic money institution or as a payment services provider. Understanding the Anti-Money Laundering and Countering the Financing of Terrorism laws that apply to companies under the supervision of the Superintendency of Banks of Panama is essential.
In addition to services related to Panama company formation for EMI or PSP companies, we can also provide information on the laws governing the financial sector through our local lawyers.
Contact us for more information on how you can obtain an EMI/PSP license in Panama.