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The World Bank Group’s Doing Business website ranks countries for ease of doing business. Panama ranks 81st out of 181 economies ranked. Within the Western Hemisphere Panama ranks 11th overall out of 31 countries. For starting a business Panama ranks number 32.

Ease of Doing Business in Panama: the Numbers

Starting a Business in Panama

The Doing Business Website also lists seven steps in registering a business in Panama along with time required and expected cost. The following table summarizes these steps.

Panama Real Estate Investment and Doing Business in Panama

Panama is the country at the South end of Central America. As the narrowest spot in the Americas it is the location of the Panama Canal which connects Atlantic and Pacific. Panama’s central location between North and South America makes Panama a transportation hub and a place for starting a business in transportation, repackaging and reshipping, and light assembly of parts.

Panama has been a great place for starting a business for many investors. Its economy is booming and attracting the highest per capita foreign investment in Latin America.

Panama has been doing business in oil transshipment since the building of Alaska pipeline and the need to move that crude oil to US gulf coast refineries. Panama may soon be starting business in refining oil near the deep water port at Puerto Armuellas. The Colon Free Trade Zone has been doing business in receiving, repackaging, and resending container shipments for years. It is said that 40% of South American bound container shipments pass through the Panama Canal.

Panama property investments have done well in the last years as North Americans have bought second homes and often taken advantage of Panama’s residency laws to retire in the tropics. Panama real estate investment continues to do well as Panama is making investment in a number of mega projects such as the Panama Canal Expansion. These projects not only create jobs during construction but broaden Panama’s economic base providing the opportunity for more investment and wealth creation over time.

In starting a business in a foreign country it is wise to obtain good advice. Your most important step in starting a business and registering will be picking the registered agent. A solid business plan and good legal advice will go a long way in starting a business in Panama as well as elsewhere. It is reassuring that Panama ranks well in Latin America in measures of good governance so that your investment is protected by enforceable procedures and laws.

However, the best way to avoid dealing with business paperwork and employees in starting a business in Panama may well be to buy, develop, and lease real estate. An investment in Panama real estate will likely grow year by year and as Panama’s economy moves on your returns on investment will grow too. Having someone else start and run the business while you lease the real estate could let you reap the rewards of Panama’s economic boom with less worry.

For more information on real estate investment in Panama contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.