Act 41 Provides Multinationals incentives to Move to Panama
August 3, 2009
Law 41 promises to bring more multinationals to Panama, starting out with General Electric who has already confirmed their move from Costa Rica. With over 330,000 employees worldwide and 225 in the region the executive president has announced that the "decision has been made" to move their headquarters to panama. In La prensa it was stated that Ley 41:
Act 41 promises to turn Panama into a center for multinational | LA PRENSA PRESS | | | The City of Knowledge has become a playground for multinational companies in Panama. |
Carlos Barletta To take advantage of growing world trade, yesterday went into effect the Law 41, "which creates a special regime for the establishment and operation of offices of multinational companies," according to the Official Gazette.
The Act promotes the opening of 41 multinational companies in Panama and this area will be handled by the new Commission Licensing Offices of Multinational Enterprises. Dicha comisión será presidida por el viceministro de Comercio Exterior y se reunirá por lo menos una vez al mes. This committee is chaired by the Deputy Minister of Foreign Trade and shall meet at least once a month. The functions of the commission shall establish requirements for licensing of these companies, make Panama an attractive center for multinational companies and create mechanisms to facilitate its supervision. 41 The Act also created a new secretariat. This will grant licenses for businesses, managed visas for workers, impose administrative sanctions and take an official record on multinationals. Carlos Ernesto Gonzalez Ramirez, a lawyer and former president of the Panamanian Association of Business Executives-sa, notes that this bill removes the bureaucratic process that involves registering a multinational. " Now all the paperwork is done in the Licensing Committee on Multinational Enterprises headquarters, reducing the time, he said. "The law mimics those of Switzerland and Singapore, leading multinationals, and may make Panama more competitive in the region for being the only one with this legislation," he concluded.
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