EMMA COMPANY PROGRAM FOR MULTINATIONAL COMPANIES 

The EMMA program is established for multinational companies involved in manufacturing-Related Services.  This framework created by the Government of Panama to attract foreign investments and promote the country’s economic growth.

EMMA Company Provides Permanent visa for Foreign Workers

EMPLOYEES VISA RESIDENCY

(i) Foreign Personnel Visa

Foreign personnel working for the EMMA company could request two immigration categories:

  • EMMA Permanent Personnel Visa: Foreigners who work at the EMMA at the executive level. This visa will also cover the dependents of the visa holder. This visa is granted for a period of five (5) years extendable for the same time. Employees with this type of visa may choose to obtain permanent resident status in Panama at the expiration of the five-year term.
  • EMMA Temporary Personnel Visa: Foreigners who provide technical services and training to the EMMA company. This visa is granted for a period of two (2) years, extendable.
(ii) Employee Hiring Regulations

Companies covered by the EMMA License may hire trusted foreign workers to occupy positions of managers of high and medium levels, as well as temporary personnel required for their operation. The maximum percentage of ten percent (10%) of foreign workers is not applicable to the company, as established in the Panama Labor Code.

(iii) Applicable Employment Legislation

For the purposes of this law, the employment contracts of employees holding an EMMA Permanent or Temporary Personnel Visa will be subject to the regulations of the Labor Code, including weekly hours worked, paid vacations, thirteenth month, seniority premium, and severance fund.

BENEFITS OF EMMA COMPANY

  • Income Tax – A reduced Income Tax rate of 5% on the net taxable income
  • Personal Income Tax – Personnel working under the EMMA Permanent Visa will not be subject to Income Tax
  • Import Tax – EMMA companies will be exempted from import tax on all types or classes of merchandise, products and equipment
  • Tax exemptiom on the Transfer of Goods and the Provision of Services (ITBMS)
  • Exemption on Dividend, Complementary and Branch Tax
  • Operation Notice Tax – Companies that operate under an EMMA License will not have to obtain a Notice of Operation
  • Foreign Remittance Tax – must retain 5% of the amount to be paid to the EMMA company
  • Capital Gain Tax – will be subject to a capital gain tax of two percent (2%).
  • Legal Stability of Investments – for a period of ten (10) years.
  • Panama Political and economic stability
  • International banking hub
  • Legal framework allowing 100% foreign owned investments.
  • Strategic geographical location with the Pacific and Atlantic oceans.
  • Proximity to Colón Free Trade Zone (“CFZ”)
  • Special laws for industrial parks, call centers, ecommerce
  • Excellent international transportation services and telecommunications services
  • Simplified visas, residency and work permit requirements
  • Availability of bilingual and skilled workers

HOW EMMA COMPANY WORKS?

Currently, more than 182 companies are registered under the EMMA and SEM programs in Panama. This growth is attributed to the attractive advantages offered by the EMMA & SEM benefits, as well as Panama’s political and economic stability, its strategic location, and world-class infrastructure. For example, EMMA program provides a range of benefits to companies registered under its umbrella, including tax, immigration, and labor incentives. You can find more information by contacting our specialized EMMA program. The EMMA program so far has had a significant positive impact on the Panamanian economy and has contributed new foreign investments, creating job opportunities, and promoting the country’s economic growth.RE YOU INTERESTED IN SETTING UP AN EMMA VISA PROGRAM FOR YOUR COMPANY?

The EMMA program is suitable for some multinational companies. The EMMA program is particularly attractive to multinational companies seeking to establish a presence in Panama to provide manufacturing-related services, such as assembly, manufacturing, re-manufacturing, conditioning, maintenance, logistics services, repair, and product processing.

General Qualification of EMMA Companies

Authorized Operation of EMMA Companies

  • Manufacture of products, machinery and equipment
  • Logistics services such as storage, deployment and distribution center for components or parts
  • Analysis, laboratories, tests or others related to the rendering of services related to manufacturing
  • Product development, research or innovation of existing products or processes
  • Assembly of products, machinery and equipment
  • Maintenance and repair of products, machinery and equipment
  • Remanufacture loaned products, machinery and equipment
  • Product conditioning

EMMA Company Eligibility

For the granting of an EMMA License, the following conditions must be made;

  • The assets of the multinational company
  • The locations or affiliated companies, subsidiaries, or companies associated with the multinational operation
  • Activites and operation of EMMA company
  • The listing of shares on local or international stock exchange
  • Minimum of full-time employees and annual operating expenses incurred in Panama by the EMMA Company

RESIDENCY PROGRAM REQUIREMENTS

  1. Notarized power of attorney 
  2. Five (5) passport-size photos
  3. Valid passport
  4. Police clearance report ( apostilled ) 
  5. Certificate of good health issued by a doctor in Panama.
  6. Letter of employment and responsibility from the EMMA company signed by the legal representative. The letter should include the assigned position, duration of the contract, duties to be performed, salary, source of salary, indication of the insurance to which the staff member will belong, and the company’s commitment to repatriation if necessary.
  7. Certification of a medical insurance policy, whether collective or individual.
  8. Certification issued by the Technical Secretariat of the Multinational Company Headquarters Licensing Commission.
  9. Proof of relationship: Marriage certificate, birth certificate of the permanent staff, or birth certificate of the children, or judicial certificate of guardianship and upbringing duly apostilled or authenticated by the Consulate of Panama in the issuing country.

Get in Touch with our Trusted Attorneys to Set Up EMMA Company in Panama

Panama legal center

EMAIL: customer@panamalegalcenter.com

WHATSAPP: +(507) 6404-0388


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