SEM - SEDES DE EMPRESAS MULTINACIONALES

sem.gob.pa/en/queessem.php

What is a MHQ?
MHQ are those companies, Regional or Multinational Companies Headquarters, that from Panama carry
out operations or services to their Main Office, subsidiary or affiliate in other countries. A MHQ can be able to
operate as a foreign company registered in Panama or as a Panamanian company, property of the transnational
company.
The Republic of Panama has a service based economy, for what becomes necessary to take advantage of the
globalization and the worldwide structures for the creation of new alternatives that helps for the development of our
country.
Panama is located in the center of the American Continent, with access through land, sea and air. It has a tropical
climate the whole year, free of natural disasters, and a modern capital city with the largest banking center in Latin
America. Having qualified human resource, a stable economy based on the US Dollar currency; a world class
communications platform, political and social stability, makes Panama a strategic country for any company looking
to relocate or simply open a back office.
All of this makes of Panama the ideal place to establish a Regional or Headquarters of Multinational Company, while
supporting the national economy by capital investment, local consumption of goods and services, creating
employments and transferring technology and knowledge.
However, it was necessary to count with a regulation that specifies the conditions in order for our country to become
a place of Multinational Headquarters. Together with the private sector, the Government of Panama approved a new
Law that supports the development of this important sector, through the gathering of tax and immigration incentives
under one legal framework and the creation of a Single Window Service to grant Licenses for Multinational
Companies Headquarters.
LAW NO. 41 OF AUGUST 24, 2007
By means it has been created a special rgime for the establishment and operation of Multinational Companies
Headquarters and also the LICENSES COMMISSION OF MULTINATIONAL COMPANIES HEADQUARTERS AND
FURTHERMORE IT DICTATES OTHER DISPOSITIONS.
The Law No. 41 of 2007 define the Company MHQ, as; A multinational company that from Panama carries out
operations that are directed to offer the services defined in this Law to their Main Office or to their subsidiaries or to
their affiliates or associate companies, or if they establish their Main Office in Panama, and furthermore Business
Groups. The Headquarters will always be part of multinational companies with international or regional or important
operations in their origin country.

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