Panama: Operating a Business

Setting Up a Company

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Limited Liability Company USD 5,000	Maximum of 25 shareholders Limited to capital
Corporation USD 10,000	No limit Only limited to unpaid subscribed capital.

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

Source: Doing Business.

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

	2010
Labor Force	1,557,000

Source: CIA - The world factbook

Source: UN - United Nations

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.

Minimum Wage: US $310
Average Wage: The average monthly salary is around USD 500 in the public sector and around USD 420 in the private sector. Salaries are paid every two weeks and the 13th month is spread out over 3 payments in the months of April, August and December.
Social contributions: Social Security Contributions Paid By Employers: 10.75%.
Social Security Contributions Paid By Employees: 7.25%.

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.
Unions: Panama Industrial Union (SIP) (Spanish only)
Unique National Union of the Building and related Industries (SUNTRACS) (Spanish only)
Unionization Rate: 14.2%.
Labor Regulation Bodies: Federation of Private Enterprises

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