Panama business license: the aviso de operación

What is the Panama business license (aviso de operación)?

It is the registration by which a person or company informs the government that it is starting a commercial or industrial activity in Panama. It is processed through Panamá Emprende, the online system of the Ministry of Commerce and Industries (MICI), the only system authorized to issue it. The law provides that, once the legal requirements are met, no official may oppose the operation of the business.

Who needs it?

• Companies and individuals that will carry out commercial or industrial activities inside Panama, such as opening premises, selling, providing services or manufacturing.
• A company that only holds assets or operates exclusively outside Panama generally does not need it. We confirm whether your case requires it.

Usual requirements

• The company registered at the Public Registry, or the individual's identification.
• The taxpayer number (RUC) with the Directorate General of Revenue.
• The physical address of the business.
• A description of the activity and the capital invested.
• Any special permits required by the laws governing your activity, such as health, safety or professional permits.

Permits by activity

The aviso de operación does not replace the permits required by special laws. Restaurants, pharmacies, transport, construction or professional services, among others, have their own requirements. The business must also register with the municipality where it operates to pay municipal taxes. We review your activity to tell you everything that applies.

Foreigners opening a business in Panama

A foreigner can own a Panama company, but Article 293 of the Constitution reserves retail trade for Panamanians and certain naturalized foreigners; a company may only engage in it if its owners meet that condition. A foreigner may, however, take part in businesses that manufacture and sell their own products. Using a front person as the apparent owner to get around this rule is punished by closing the business (Law 5 of 2007). To work personally in the business you may also need an immigration and work permit, which is a separate process. We explain how this applies to your case before you start.

Steps of the process

1. You describe the business you want to open and where.
2. We tell you which permits apply to your activity.
3. If needed, we form the company and obtain the RUC.
4. We file the aviso de operación on Panamá Emprende.
5. We guide you through the municipal registration and special permits.

Legal basis

• Law 5 of 2007, which simplifies business opening and created the aviso de operación.
• Article 293 of the Constitution, on retail trade.
• Fiscal Code rules on the taxpayer number (RUC).
• Special laws for each activity and municipal regulations.