EMMA: Creation of a new special regime to counteract the imminent economic impact generated by COVID-19

The Ministry of Commerce and Industries (MICI) is currently working on a project aimed at promoting foreign investment through a new special regime for Multinational Manufacturing Related Services (EMMA) companies, with the aim in establishing these companies in Panama for the provision of manufacturing services such as: assembly, manufacturing, re-manufacturing, conditioning, maintenance, logistics services, repair and processing of products to the same economic group.

This regime is aimed at new companies that want to take advantage of the incentives, or for companies that are currently registered under the headquarters of multinational companies (SEM) regime, and who wish to expand their services within the same economic group under a new light manufacturing division, therefore, at the time that the SEM company applies to join this regime, it obtains the benefit of “fast track” for the issuance of the EMMA license expeditiously.

The aim of this regime is boost the growth of the economy, generate new jobs and capitalize on technological transfer.

Among the greatest advantages to enjoy the incentives of the EMMA regime is that Panama has a strategic geographical position, with twenty-three (23) Free Trade Agreements, free economic zones, ports, railways, airports, logistics centers, and additionally companies under EMMA regime will automatically enjoy the guarantees established by Law 54 of 1998 on the Legal Stability of Investments.