Panama: Operating a Business

Setting Up a Company

Sociedad de responsabilidad limitada or S de RL (Limited Liability Company): Number of partners: At least 2 shareholders
Capital (max/min): No minimum capital required
Shareholders and liability: Limited to the amount of capital contributions
Sociedad anonima or SA (Corporation): Number of partners: At least 3 executives and 1 shareholder. No limit in the number of partners
Capital (max/min): No minimum capital required
Shareholders and liability: Only limited to unpaid subscribed capital
Sociedad en Comandita Simple: Number of partners: At least two, one general partner and one silent parnet
Capital (max/min): No minimum capital required
Shareholders and liability: Unlimited for general partners, limited for silent partners

The Competent Organisation: The Public Registry for incorporations of Companies and Foundations in Panama.

Setting Up a Company	Panama	Latin America & Caribbean
Procedures (number)	5.0	8.0
Time (days)	6.0	25.2

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Panama.
Trade Register

	2018	2019	2020
Labour Force	2,029,890	2,092,546	1,985,726

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: Panamanian labor law allows 4 work shifts per day.

1) Day work of 8 hours maximum per day and 48 hours per week which should take place between 6 AM and 6 PM. 2) Night work of 7 hours maximum per day and 42 hours per week which should take place between 6 PM and 6 AM. 3) Mixed work (night and day) of 7.30 hours maximum per day and 45 hours per week which should take place during the two cycles of work. More than 3 nights per week the other periods are automatically considered as night. 4) Rotating cycle when the company needs staff during the different shifts.
Retirement Age: 57 years for women and 62 years for men.
Working Contracts: The employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts, the conditions of hiring and dismissal are strict.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: The minimum wage levels can vary significantly depending on the sector and region in which the employee works.
In 2021, the minimum monthly wage for domestic work is set at BAP 300 or BAP 275 depending on the region (Ministry of Labour and Labour Development of Panama).
Average Wage: According to the ILO, the average salary was PAB 1,422 per month in 2018 (latest available data).
Social Contributions: Social Security Contributions Paid By Employers: 12.25%. of the monthly gross wage (and 10,75 % of the 13th month)
Social Security Contributions Paid By Employees: 9.75%.of the monthly gross wage (and 7.25% of the 13th month)

Social Dialogue and Involvement of Social Partners: Private sector workers have a right to form and to join unions of their choice. Public sector employees do not have a right to form unions. Government workers can form "associations" and negotiate collectively but only if they have a minimum of 50 members.
Labour Unions: Panama Industrial Union (SIP) (Spanish only)
Unique National Union of the Building and related Industries (SUNTRACS) (Spanish only)
Unionisation Rate: 14.2%.
Labour Regulation Bodies: Federation of Private Enterprises

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