Does every business need an Operation Notice?

Most commercial and industrial activities within Panama do require it (Law 5 of 2007). Some activities are exempt or governed by special regimes (e.g., certain free zone activities or regulated professions), and regulated financial activities additionally require a superintendency license. Verify your specific activity on PanamaEmprende or with your attorney.

Can a foreigner open a retail store in Panama?

Retail trade is constitutionally reserved for Panamanian nationals, with limited exceptions. The definition of what constitutes 'retail trade' and the permitted structures are sensitive legal matters: consult a Panamanian attorney before investing in retail. Wholesale trade, industry and services do not carry this general restriction.

How is the annual Operation Notice tax calculated?

It is 2% of the company's net worth (assets minus liabilities), with a $100 minimum and a $60,000 annual maximum, declared with the income tax return to the DGI. Companies in free zones and special regimes have different rates or caps. Confirm the calculation with your accountant.

Business Licenses in Panama | Operation Notice

Visa Types

Most commercial and industrial activity in Panama requires an Aviso de Operación (Operation Notice) under Law 5 of 2007, obtained online through the PanamaEmprende portal (panamaemprende.gob.pa) in a matter of minutes. The annual Operation Notice tax is 2% of the company's net worth, with a $100 minimum and $60,000 maximum, per the Fiscal Code (as amended 2009-2010) (source: DGI). Municipal taxes also apply per district, plus the $300 annual franchise tax (tasa única) for corporations. Certain activities require sector regulators' licenses instead of, or in addition to, the Operation Notice: banking (SBP), securities (SMV), insurance (SSRP), tourism registration (ATP), sanitary permits for food handling (MINSA) and municipal construction permits. Important: retail trade is constitutionally reserved for Panamanian nationals with exceptions; foreign investors should verify retail restrictions with counsel.

Legal Disclaimer

This information is general guidance only and does not constitute legal or tax advice. License requirements, taxes and restrictions (including the constitutional retail reservation) change and their application is case-specific. Consult a licensed attorney in Panama and verify current information at panamaemprende.gob.pa, mici.gob.pa and dgi.mef.gob.pa before operating. Last updated: July 2026.

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