Doing Business 2014: Panama Summary
Core Content
The Doing Business 2014 report evaluates the ease of doing business in Panama and 188 other economies, focusing on regulations affecting small to medium-sized enterprises (SMEs) across 11 key areas. These include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers. The report provides aggregate rankings, comparative data, and insights into regulatory reforms.
Main Points
Ease of Doing Business Index
- Panama's 2014 Rank: 55 (up 6 places from 2013)
- Distance to Frontier (DTF): 66.7 (up 1.6 from 2013)
- Region: Latin America & Caribbean
- Income Category: Upper middle income
- Population: 3,802,281
- GNI per capita (US$): 9,910
Key Indicators
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Starting a Business |
25 |
26 |
22 |
79 |
102 |
148 |
145 |
20 |
New Zealand (1) |
| Procedures (number) |
5 |
6 |
7 |
9 |
9 |
8 |
6 |
6 |
New Zealand (1)* |
| Time (days) |
6.0 |
7.0 |
5.5 |
15.0 |
24.0 |
16.5 |
19.5 |
5.0 |
New Zealand (0.5) |
| Cost (% of income per capita) |
7.2 |
8.8 |
0.7 |
7.5 |
9.5 |
45.5 |
46.4 |
1.5 |
Slovenia (0.0) |
| Paid-in Min. Capital (% of income per capita) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
2.8 |
19.6 |
0.0 |
112 Economies (0.0)* |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Getting Electricity |
16 |
17 |
43 |
101 |
47 |
154 |
34 |
13 |
Iceland (1) |
| Procedures (number) |
5 |
5 |
6 |
5 |
5 |
8 |
4 |
4 |
10 Economies (3)* |
| Time (days) |
35 |
35 |
30 |
105 |
62 |
88 |
39 |
60 |
Germany (17) |
| Cost (% of property value) |
2.3 |
2.3 |
1.2 |
2.0 |
3.4 |
3.8 |
0.8 |
3.4 |
5 Economies (0.0)* |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Registering Property |
74 |
81 |
55 |
53 |
46 |
59 |
23 |
25 |
Georgia (1) |
| Procedures (number) |
7 |
8 |
6 |
7 |
5 |
5 |
4 |
4 |
4 Economies (1)* |
| Time (days) |
29.5 |
28.5 |
28.5 |
13.0 |
19.0 |
31.0 |
23.0 |
12.0 |
New Zealand (1.0)* |
| Cost (% of property value) |
2.3 |
2.3 |
1.2 |
2.0 |
3.4 |
3.8 |
0.8 |
3.4 |
5 Economies (0.0)* |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Getting Credit |
55 |
52 |
55 |
73 |
86 |
55 |
13 |
3 |
Malaysia (1)* |
| Strength of legal rights index (0-10) |
5 |
5 |
6 |
5 |
3 |
5 |
8 |
9 |
10 Economies (10)* |
| Depth of credit information index (0-6) |
6 |
6 |
5 |
5 |
6 |
6 |
6 |
6 |
31 Economies (6)* |
| Public registry coverage (% of adults) |
0.0 |
0.0 |
40.5 |
0.0 |
25.4 |
27.3 |
19.1 |
0.0 |
Portugal (100.0)* |
| Private bureau coverage (% of adults) |
60.8 |
57.9 |
5.9 |
83.8 |
100.0 |
83.3 |
8.6 |
100.0 |
22 Economies (100.0)* |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Trading Across Borders |
11 |
11 |
40 |
94 |
44 |
64 |
116 |
22 |
Singapore (1) |
| Documents to export (number) |
3 |
3 |
5 |
4 |
5 |
7 |
8 |
3 |
Ireland (2)* |
| Time to export (days) |
10 |
10 |
15 |
14 |
13 |
13 |
17 |
6 |
5 Economies (6)* |
| Cost to export (US$ per container) |
625 |
615 |
980 |
2,355 |
1,015 |
980 |
1,435 |
1,090 |
Malaysia (450) |
| Documents to import (number) |
3 |
3 |
5 |
6 |
5 |
7 |
7 |
5 |
Ireland (2)* |
| Time to import (days) |
9 |
9 |
12 |
13 |
14 |
10 |
17 |
5 |
Singapore (4) |
| Cost to import (US$ per container) |
965 |
965 |
930 |
2,470 |
1,070 |
970 |
1,500 |
1,315 |
Singapore (440) |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Enforcing Contracts |
127 |
126 |
64 |
155 |
130 |
68 |
97 |
11 |
Luxembourg (1) |
| Time (days) |
686 |
686 |
480 |
1,288 |
852 |
786 |
1,402 |
370 |
Singapore (150) |
| Cost (% of claim) |
50.0 |
50.0 |
28.6 |
47.9 |
24.3 |
19.2 |
26.5 |
18.4 |
Bhutan (0.1) |
| Procedures (number) |
32 |
32 |
36 |
34 |
40 |
34 |
31 |
32 |
Singapore (21)* |
| Indicator |
Panama DB2014 |
Panama DB2013 |
Chile DB2014 |
Colombia DB2014 |
Costa Rica DB2014 |
El Salvador DB2014 |
Guatemala DB2014 |
United States DB2014 |
Best Performer |
| Resolving Insolvency |
112 |
112 |
102 |
25 |
124 |
90 |
109 |
17 |
Japan (1) |
| Time (years) |
2.5 |
2.5 |
3.2 |
1.7 |
3.0 |
3.5 |
3.0 |
1.5 |
Ireland (0.4) |
| Cost (% of estate) |
25 |
25 |
15 |
6 |
15 |
12 |
15 |
7 |
Norway (1) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
1 |
- |
| Recovery rate (cents on the dollar) |
27.5 |
27.5 |
29.1 |
70.3 |
24.5 |
32.8 |
27.7 |
81.5 |
Japan (92.8) |
Key Information
Business Registration Process
- Procedures: 5
- Time: 6.0 days
- Cost: 7.2% of income per capita
- Paid-in Minimum Capital: 0.0% of income per capita
Business Registration Reforms in Panama
| Year |
Reform |
| DB2009 |
Introduction of an online system for company creation reduced the time to obtain a business license significantly. |
| DB2010 |
No reform recorded. |
| DB2011 |
Increased efficiency at the registrar eased business start-up. |
| DB2012 |
Extended operating hours of the public registry reduced registration time. |
| DB2013 |
No reform recorded. |
| DB2014 |
Elimination of the need to visit the municipality to obtain the municipal taxpayer number simplified the process. |
Standardized Company Assumptions
- City: Panama City
- Legal Form: Sociedad Anónima (S.A.) - Corporation
- Paid-in Minimum Capital Requirement: None
- Start-up Capital: 10 times GNI per capita
- Procedures:
- Hire a registered agent (1 day, USD 200)
- Notarize articles of incorporation (must include name and domicile of each subscriber)
Conclusion
The Doing Business 2014 report highlights that Panama has made progress in improving its business environment, particularly in reducing the time and cost to start a business and streamline processes. However, there are still significant challenges in areas such as property registration, credit access, and contract enforcement. The report emphasizes the importance of regulatory reforms in enhancing the ease of doing business and supports policy makers in identifying areas for improvement.