Famous for its eponymous canal, this is a centre for global trade, with plenty of C suite executives looking at company formation in Panama. There are few locations anywhere in the world that are quite as open to international trade as here. Just like any other country, you will need local representation, which includes an auditor in Panama.
Before you launch or move your business to the country it is crucial that you understand the local tax and accounting requirements, as they may differ from your home market. An auditor in Panama can help you navigate these new waters and make sure that your business stays compliant under both local and international law overseen by the tax authority DGI.
Partnering with a local specialist such as Biz Latin Hub means that you will have an experienced guide on your side as you enter the new market. We can set you up with an auditor in Panama or elsewhere in Latin America and the Caribbean, with our 18 dedicated local offices across the region. Our array of back office services can help you through company formation and ongoing support such as help with accounting and taxes.
Why invest in Panama?
Panama offers competitive investment opportunities and favourable lifestyle conditions, with business-friendly laws to motivate company formation.
The government is extremely business friendly and open to global trade and foreign investment.
Streamlining residence and incorporation processes for entrepreneurs allows you to get started earlier than others in the region. In Panama, you can register your business within around 2 weeks, and complete the full incorporation process in 2 months.
Working from Panama empowers trade for businesses operating from a prime geostrategic location, between key northern and southern partners.
Of course, the famous canal is a massive part of this, allowing trade both East and West with ease.
Why does a company need an auditor in Panama?
Local expertise is crucial for foreign investors to navigate the complexities of doing business in a new country. Financial regulations in Panama, for example, can be particularly intricate, requiring several months or even years to fully comprehend.
As a precaution against potential issues, utilizing the services of local specialists is highly recommended. The two most common legal entity (company) structures in Panama are a Corporation/Joint Stock Company (Sociedad Anónima – S.A) or a Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L).
An auditor in Panama is a legal necessity for companies that are considered to have a significant presence in the country. This is defined locally as having capital of USD$100,000 or income of USD$50,000.
It is also important to note that accounting records must be kept in Spanish.
What is the role of an auditor in Panama?
The auditor is there to check that the company is conducting its business appropriately to aid financial transparency. That means that they may not be an employee of the company, nor may they be connected to the company in any way. This allows them to be impartial and independent when conducting the audit. An auditor in Panama must be registered with the JTC.
What qualities does an auditor need?
When looking for an auditor in Panama, there are certain factors to keep in mind, including:
- Experience: Look for an auditor that has experience working with foreign investors and in your industry.
- Reputation: Check online reviews and feedback to assess the quality of service you can expect.
- Language: Ensure that the auditor you work with is fluent in a language you are comfortable communicating in.
- Communication: If you will be spending extended periods outside of Panama, choose a lawyer or firm that is proficient in using online tools for easy management and reporting.
FAQs on an auditor in Panama
It is important to have an experienced auditor in Panama to ensure that your company is compliant with the country’s financial rules.
An auditor in Panama is a legal necessity for companies that are considered to have a significant presence in the country. This is defined locally as having capital of USD$100,000 or income of USD$50,000.
You do not need one by law, but you may find it beneficial to undergo an auditing process in order to demonstrate reliability, company health and transparency.
When looking for an auditor in Panama, there are certain factors to keep in mind, including:
Experience: Look for an auditor that has experience working with foreign investors and in your industry.
Reputation: Check online reviews and feedback to assess the quality of service you can expect.
Language: Ensure that the auditor you work with is fluent in a language you are comfortable communicating in.
Communication: If you will be spending extended periods outside of Panama, choose a lawyer or firm that is proficient in using online tools for easy management and reporting.
It is important to note that accounting records must be kept in Spanish.
Biz Latin Hub can provide you with an auditor in Panama
Starting a company in Panama requires the support of a qualified financial team from the outset to ensure that your business complies with local laws and is well-regarded by the authorities.
Without this, even a well-planned business may struggle to thrive. At Biz Latin Hub, we have a team of locally-based specialists who possess a comprehensive understanding of the Panamanian business environment, including its laws and complications.
We are well-equipped to assist foreign companies looking to conduct commercial activity in the region with all accounting, taxation, and financial matters.
If you’re interested in learning more about the Panamanian economy, the opportunities for starting a company there, and need an auditor in Panama, please contact us today.
