MAJOR TRENDS IN MULTINATIONALS
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2 MAJOR TRENDS IN MULTINATIONALS Globalization has expanded presence of companies in different markets Proliferation of markets have made necessary the establishment of regional headquarters Regional centers need to offer stability, positive business environment, security and connectivity Small countries serve better as regional headquarters than large countries
3 What is a Multinational Headquarter? (MHQ) A Multinational or Regional Headquarter of Multinational companies are those that from Panama carry out operations or services to their Main Office, Subsidiary or Affiliate in other countries. A MHQ can operate as a foreign company registered in Panama or as Panamanian company property of the Multinational.
4 Law 41 of August 24th of 2007, creates: MHQ Commission: Recommends the issuance of the MHQ License, and development of the Law. The Technical Secretary of MHQ: Receives and expedites MHQ License application, Visas y Certificates for the Executives and Dependants.
5 MHQ INCENTIVES
6 LABOR MHQ s can have as many foreign personnel in upper management positions as necessary. Work permit is not needed after an MHQ Visa is granted.
7 IMMIGRATIONS Special Immigrations Permits for MHQ personnel and dependants are expedited through a one stop window office Permanent Personnel: Five year, renewable visa for management and dependents. Temporary Personnel: Three months temporary visa, renewable once for activities related to the MHQ or it s group; technical, training or operational assistance.
8 FISCAL Tax exemption INCOME TAX Since the MHQ will be operating off shore, there is no taxable income. EXECUTIVES are exempt of Income Tax when salaries are received directly from headquarters.. Household Goods Import Exemption when relocating for the first time to Panama.
9 Activities permitted to it s own Business Group Management and/or administration of operations of the group Logistics and/or warehousing of components or parts of any product manufactured by the company Technical assistance to companies of the economic group or previous customer of corporate group Financial management, including treasury services, of the economic or corporate group.
10 Activities permitted to it s own Business Group Accounting of the economic or corporate group Preparation of plans being part of the designs and/or constructions of the group Consulting, coordination and monitoring of marketing and advertising strategy for goods or services produced the group. The electronic processing of any activity including operations Consolidation and network operations.
11 WHY PANAMA FOR YOUR MHQ?
12 PTY.The Ideal Location for your MHQ International Crossroads Daily flights to most Latin American Cities Specialized training for Human Resource Development Good quality of life Existing schools in international languages
13 PANAMA Strategic Location! Located within a few hours of all major international U.S. Cities as well as South and Central American Cities 54 Direct Flights to and from Panama 14 International Airlines
14 PANAMA Connected to the Americas Dollarized economy and easy remittances International Banking Center & Service Center Modern Investment Laws Solid telecom connectivity Best Port System in Latin America Best access to credit in Latin American Easy movement of currency No Central Bank
15 PANAMA A Stable Country Stable Government Presidential Representative Democratic Republic Low Unemployment Poverty levels comparable to wealthier nations in the region and decreasing Low inflation over the last twenty five years First World class Infrastructure and expanding Grade Investment of BBB, with Positive Perspective (2010)
16 PANAMA replaced Chile! As the Latin American country with the best Business Climate., according to annual Latin Business Chronicle. Out of 19 countries is broadest measure of Business Climate in Latin America. It looks at 5 key categories an 27 subcategories to measure the Future Business Environment: May
17 PANAMA CHECKS 5 Business Climate Indicators Macro Environment Corporate Environment Globalization & Competitiveness Political Environment Technology Level
18 Trade Center of the World Trade center with exports and imports totaling over 15 billion dollars annually Most integrated intermodal logistic center of the hemisphere Colon Free Zone with close to 2000 companies trading in the hemisphere Panama Pacific Economic Area More than 3 million containers in transshipment More than 300 million ton and fourteen thousand transits through the Panama Canal
19 PANAMA Logistic Experts Multimodal Hub with World access for logistic and connectivity
20 PANAMA Development of Mega Buildings for new office projects
21 PANAMA All types of Living Accommodations & Quality of life Modern skyscrapers, International cuisine and entertainment Variety of new housing projects in the city, suburbs, beach and country living
22 Modern Health Services State of the art hospital facilities Medical Tourism Affiliated to renown International Hospitals Johns Hopkins Medicine International Baptist Health International Center of Miami Tulane University Miami Children s Hospital
23 PANAMA Competitive labor costs Average salary: Bilingual Secretary: $ Call Center Operator: $ Engineer: $1.500 Household Service: $ Literacy Rate 90% Specialized Training
24 PANAMA Welcome Expats! Panama is committed to facilitate the relocation of international companies to Panama International Living rates Panama as number four in the world for a second home
25 PANAMA Hotels Infrastructure More than 4,000 four and five star hotel rooms Two Convention Centers Major Hotel Chains Tourism Authorities
26 Research & Technology Development Centers Existing Fiber optics infrastructure 5 sub marine cables converge City of Knowledge Regional Call Centers presence 1. Maya 1 2. Arcos 1 3. SAC 4. MAC 5. Pan American Miami, FL Panama High end technology Multinational companies operating in Panama Bermuda Puerto Rico Brazil Uruguay
27 PANAMA These companies already chose PTY Our best proof of Success!
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