ENTREPRENEURIAL COMPANY PROCEDURE MANUAL UNDER LAW 186

Abstract

Due to the pandemic, many things have changed globally. The existence of a special law that can assist individuals in changing their entrepreneurial ventures has been highly beneficial in Panama. Law 186, enacted in December 2020, regulates entrepreneurship companies in Panama, introducing a legal form known as Entrepreneurship Company with the purpose of incentivizing and promoting entrepreneurship in the country. However, this law is still unfamiliar to many people regarding its potential benefits and how to integrate with it for their businesses. The main objective of this research was to develop a Procedure Manual for Entrepreneurship Companies under the provisions of Law 186. The research followed a positivist paradigm and employed a descriptive, non-experimental field study. Among the relevant findings, it was observed that one crucial characteristic of this law is that individuals can become partners without the need for a resident agent, a requirement applicable to legal corporate entities. Additionally, other important features include exemption from the annual flat fee for two years, a two-year income tax exemption, and an exception for the use of fiscal printers. Furthermore, there are import tariff discounts for inputs and raw materials. The research concludes that entrepreneurs who are knowledgeable about Law 186 can achieve significant growth results for their ventures. However, based on the conducted survey, it is evident that many people are still unaware of the process for opening and benefiting from this law. Therefore, accountants must be well-informed about the law to provide guidance to clients and those interested in implementing it for their businesses.