Decree that regulates the Special EMMA Regime is promulgated

With Executive Decree No. 33 of February 4, 2021, the National Government, through the Ministry of Commerce and Industries (MICI), established the rules and procedures applicable to the installation, administration, maintenance and operation of those national companies or foreigners who wish to invest in Panama, under the Special Regime for the establishment and Operation of Multinational Companies for the provision of services related to manufacturing, known as EMMA.

This regulation indicates that EMMA companies must comply with the requirements approved by the Licensing Commission for Multinational Companies Headquarters (SEM), which states that for their eligibility companies must have a total of assets of the business group equal to or greater than the $ 75 million or have a minimum of three subsidiaries.

Regarding the procedures, the Directorate of Headquarters of Multinational Companies of the MICI, will act as Technical Secretariat of the Commission, to grant approval of the Licenses.

The Decree also states that companies must register with the Public Registry of the Republic of Panama, either as a foreign company, or as a Panamanian company owned by the multinational company. A multinational company that already has an SEM License may apply for an EMMA license through a summary process. Likewise, a company that is operating in Panama may, through the same legal entity through which it has been carrying out its activities, avail itself of the Regime, delimiting its activities to the EMMA.

It also includes standards to be met in immigration processes for investors and the entry of merchandise into the country.

In this regard, Jeannette Díaz Granados, MICI's General Director of Multinational Companies Headquarters, explained that the SEM Immigration regime was approved, which includes the visa application process for EMMA foreign personnel through the Single Window of the National Directorate of Investments of the institution.
 
On the other hand, due to the nature of EMMA's activities, a Special Customs regime is established, allowing EMMA companies to physically establish themselves in the Special Economic Area such as the Free Zone, Panama Pacifico or in any existing primary customs zone. as well as anywhere in the national territory where the development of said activities and services is allowed.