Multinational Companies Law Moves Forward
Wednesday, July 29, 2020
The Panamanian Assembly approved in first debate the bill creating the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
This bill aims to create the Special Regime for the Establishment and Operation of Multinational Enterprises for the Provision of Services Related to Manufacturing (EMMA), in order to make Panama a more competitive nation in the global economy and adapt the attraction of investments in the provision of services and productive processes, manufacturing, as well as the generation of jobs and technology transfer, the Assembly reported.

The statement dated July 28, 2020 states that "... This new regime would cover services related to the manufacture, assembly, re-manufacture, conditioning, maintenance and repair of products, as well as logistics services, among others.

Multinational companies that are granted an EMMA license will automatically enjoy the guarantees established by Law 54 of 1998, on stability".

Ramon Martinez, Minister of Commerce and Industry, said that "... the Republic of Panama depends to a great extent on direct foreign investment, so we must take measures to be more competitive in attracting investment, since it costs us for the cost of energy and labor."

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Multinational Companies Law Endorsed
August 2020
Deputies of the Panamanian Assembly approved in third debate the bill creating the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
The services of these multinationals will be able to be developed in different provinces of the country and will work in product manufacturing, equipment machinery, product packaging services, machinery and equipment, the Assembly informed.
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Modifications made to the law regulating the SEM regime in the country, would have been the reason for reporting during last year the establishment of only seven new companies of this type.
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The bill presented by the Ministry of Commerce and Industries (Mici) to the National Assembly contemplates, among other things, the new conditions that must be met by companies seeking to obtain a license as Regional Offices of Multinational Corporations (SEM by their initials in Spanish). In addition, it details a proposed law reform, under which companies must generate annual operating expenses in the country of at least $500,000.
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