1. The situation

Someone offers you a business in Panama: a partnership, a company to buy into, a supplier, a project. The name on the paperwork is a company, not a person. Before you sign or send money, a few public checks tell you whether that company exists and who stands behind it.

2. What can go wrong

  • The company is not what it was described as. The name, the activity or the people may differ from what you were told.
  • The person signing may not be able to bind it. Being the face of a deal is not the same as having authority to commit the company.
  • The business is not formally declared. In Panama, a commercial or industrial activity starts with a sworn Aviso de Operación (Law 5 of 2007).

3. How to check, step by step

  1. Get the exact legal name and the RUC. Ask for them in writing, not just the brand name.
  2. Ask for the deed (escritura) of the company. It contains the general details of the sociedad anónima, and it is the document the Public Registry asks for when issuing a certificate (Panamá Digital: Certificación para Sociedad Anónima).
  3. Get a current Public Registry certificate through your own lawyer. It certifies that the company exists. The official page lists about 3 to 4 hours as the average processing time (Panamá Digital).
  4. Check the Aviso de Operación. Panamá Emprende has a public lookup of existing avisos (Panamá Emprende: consulta pública). The aviso number is the RUC followed by a confirmation code (Law 5 of 2007).
  5. Compare the names. The company name, activity and people on the certificate and the aviso should match what you were told. If something differs, ask why in writing.
  6. Confirm who can sign. Ask your lawyer to confirm, from the certificate and the deed, who has authority to commit the company and for what.
  7. Put it in writing. Any agreement should be drafted or reviewed by your own lawyer, with the scope, the money and the exit clearly stated.

4. What this doesn't cover

This is a checklist for the first look, not a full due diligence and not an evaluation of any company or person. Procedures and requirements change, so confirm current ones with the Public Registry and Panamá Emprende.

Please read: this is general information, not legal advice, and the sources are government pages that may change. Only in a Legal Consultation is the right briefing and roadmap built for your case.