For up to date Information visit this link: https://www.bizlatinhub.com/peo-payroll-company-panama/ Panama remains one of the top commercial jurisdictions in Latin America, and rightly so. The region has extremely favourable foreign investment laws and an attractive business environment. Additionally, Panama's strategic geographic location and being home to the Panama canal have made the country a key platform for international trade in America and around the globe.

1. Hiring Employees +
Recruitment Requirements in
Panama
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2. www.bizlatinhub.com
Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in Panama.
Yes – 3 months
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
Minimum of 30
days
Vacation
entitlement
Max employer
contribution is 26%
Total cost of
employment
Employers
Who manages
withholding tax?
• Social Security
• Pension Fund
• 13th Month Salary
Employee benefits

3. www.bizlatinhub.com
Pathways to Hiring Staff
Through a local
legal entity
Through a PEO solution:
Professional Employer
Organization

4. Forming a Legal Entity in Panama
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In Panama, there are (2) main types of legal entities:
A Corporation/Joint Stock Company (Sociedad Anónima – S.A) and a Limited Liability Company
(Sociedad de Responsabilidad Limitada – S.R.L)
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations

5. Professional Employer Organization
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Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company

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contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America

7. Doing Business in Panama?
Learn More Here!
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How To Open a
Corporate / Company
Bank Account in
Panama
5 Reasons to
Incorporate a
Company in Panama
Business Accounting
and Company Tax
Declarations
Requirements in
Panama