OSFL

• Establishment of the legal name of your entity.
• Being a subject of law that will allow acquiring goods, signing alliances, establishing the legal platform as support for the activities that are organized, registering logos, among others.
• Establishment of the legal platform to have a bank account and thus not entrust the money to their members in a personal capacity.
• Legal establishment of the rights and duties of the members as a measure of internal legal transparency.
• Legal establishment of the Board of Directors with its powers and responsibilities as a measure of internal legal transparency of its actions.
• Establishment of a General Assembly for the legal decision-making as a measure of internal legal transparency of decision-making of the entity.

• A minimum of three (3) Panamanians or foreigners with residence who will form the first Board of Directors. (Copies of the IDs or their residences).
• Have a name that is not already in use by another legal entity in Panama.
• Have a name that is not already in use by another legal entity in Panama.
• Define what the objectives will be in detail and explain if they are beneficial (for some sector of society) or private union (for associates).
• Detail what will be the activities that will generate your assets.

With this information you can have a meeting with the lawyer to start the next steps, consisting of the drafting of the Statute and the other documents necessary for the request to the Ministry of Government, a process that takes several months to complete. After this, the documents will be protocolized in a Notary for presentation in the Public Registry. Once registered, the Unique Taxpayer Registry (RUC) can be obtained and must be registered in the Activity Registry of the Ministry of Government.

• Not distribute their income among their members.
• Do not promote any kind of discrimination.
• Communicate to the Ministry of Government any change of address.
• Guarantee respect for human rights and the fundamental guarantees enshrined in the Political Constitution of the Republic for the affiliation of new people.
• Have a minute book, maintain an updated record of its members and the necessary accounting books or records, which may be requested at any time by the Ministry of Government.
• Submit in a timely manner to the General Directorate of Revenue the Report on Donations Received and the Report on Payments to Third Parties, which must contain all the corresponding required information from the first (1) day of January of the thirty-first (31) of December inclusive of the period immediately prior to reporting.

*In the event that they receive money from Foreign Governments, National, International Organizations or other sources, channeled through public institutions, these must be deposited in bank accounts in financial institutions in Panama. These accounts, as well as the movements of funds from them, may be audited by the Comptroller General of the Republic.

*NGO/OSFL must submit a Report of Non-Filers to the General Directorate of Revenue when they have received gross income equal to or greater than One Million Balboas (B/.1,000,000.00) and/or possessed total assets on the same date for an amount equal to or greater than the Three Million Balboas (B/.3,000,000.00). If you have employees, you must also submit the Sworn Declaration of Withholdings form, called Form 03.

In order for your NGO/OSFL to offer the donor the benefit that their donation may be deductible from Income Tax, prior authorization must be obtained from the General Directorate of Revenue, for which the NGO/OSFL must comply with at least the following:

• The NGO/OSFL must be a charity of the country.
• Have a work plan for the next five (5) years.
• Proof of their achievements for the benefit of the community as a constant task, at least in the previous twelve (12) month period.
• Magazine, photos, brochures, pamphlets, newspaper clippings and similar documents that prove the effective implementation of plans and programs.
• Consent to visual inspection of the facilities.
• Have complied with the submission of reports to the DGI by the NGOs/OSFLs.

The Department of Supervision, Follow-up and Evaluation of NGOs/OSFLs is part of the Directorate of Legal Affairs and Legal Procedures of the Ministry of Government, it is in charge of the supervision, follow-up and evaluation regarding the operational functioning of NGOs/OSFLs recognized by the Ministry of Government.

When an NGO/OSFL is being monitored and supervised, said situation will be indicated in its file and no modifications to the documentation approved by the Ministry of Government will be allowed until the process is closed.