Panama Law No. 5 of January 11, 2007 establishes the rules for obtaining business licenses in the country, facilitating the formalization of economic activities. This law pretends to simplify and digitalize the procedures, allowing natural and juridical persons to obtain commercial licenses in a more efficient way, thus contributing to the business development in the country.
The law establishes a unified system that classifies commercial licenses into different categories, depending on the type of economic activity to be carried out, such as retail, wholesale, services and other economic activities.
The Ministry of Commerce and Industries (MICI) is the entity in charge of the issuance of commercial licenses, and the law details the requirements that applicants must comply with, including documents evidencing the legal existence of the company, its commercial activity and compliance with local regulations, such as the payment of municipal and national taxes.
Renewal of Licenses and Penalties
Panama Law No. 5 also decrees that business licenses must be renewed periodically, and the competent authorities have the right to carry out inspections to verify that companies comply with imposed standards and regulations. Sanctions are also established for those who operate without a valid business license or who fail to comply with the requirements stipulated in the ordinance. Penalties may range from fines to closure of the business operation, depending on the seriousness of the infraction.
One of the most relevant aspects of the Panama Law No. 5 is the transparency and simplicity of administrative procedures, which has encouraged the formalization of small and medium-sized enterprises (SMEs) in Panama, thus contributing to the country’s economic development.
Achieve legal compliance with Kraemer & Kraemer
If you are interested in obtaining a business license or have doubts about how to comply with this law, do not hesitate to contact us. Our legal team is available to provide you with the necessary advice and make sure that your business complies with all the regulations in force.
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