Casual Articles - Business

Careers In The Advertising Business Internet Marketing Style
So you are interested in seeking a job with an advertising business or Internet marketing firm? The first step would be to gain enough knowledge in marketing theory and practical applications. A four-year college degree is helpful but those without a college degree can still land a job with a top firm if they have enough real-world experience. You must have a genuine love for advertising to be successful. Often the initial salaries are small and job turnover is high. But with a strong determination, you can succeed in the advertising and Internet marketing field.When entering the Internet marketing arena, try to become as familiar with successful clients as possible. Learning how successful firms have succeeded in business will give you an idea on how to be successful yourself. Also, if you do a good job working with a dominant firm, they may direct you into your next step in the advertising world. Learn what clients need and want from an advertising firm and seek to fulfill their needs.A second step toward a career in the Internet marketing world is making bold moves. Don’t be afraid to experiment a little after you have established yourself. Your superiors will recognize innovation. Look for great advertising program and try to figure out how they work and why. Apply the knowledge in projects you are involved with. Always be willing to improve your work and clients will see your efforts.Another important thing to remember when learning about the Internet marketing industry is to keep the client first. Visualize his perspective in all your work. By keeping the client first, you will gain their respect and their advertising business for a long time. Gaining loyalty is a major asset in the advertising world. If you choose to someday join another firm, often times your clients will move with yo

Sanitary Permit If your business deals with food or beverages, you will need to get Permisos Sanitarios with the Ministerio de Salud. That translates as a Health Certificate from the Ministry of Health for permission to operate a sanitary business. Every employee (including owners & management) who prepare or serve food or beverages (or are in the vicinity of food or beverage preparation or service) must obtain two different Permits. One requires a medical & dental examination at a public hospital. The other is issued after attending a two day health & safety course.

6. Fumigation Certificate Every business which is open to the public must be fumigated. You will need to hire a private fumigation company every four months to fumigate against ants, roaches, and other bugs. You must then present a receipt from the fumigation company and obtain a Fumigation Certificate from your local municipality. This must be publicly displayed at your business entrance.

Hiring Employees Now that you have obtained all of the required government permits and licenses, you are now ready to hire employees. For those of you thinking of hiring your expat buddies, Panama limits a company's work force to a maximum of 10% foreigners (non-Panamanian). Panamanian laws require that 90% of a company's employees be Panamanian citizens, or married to a Panamanian, or foreign persons residing here for at least 10 years.

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreign

Expand Your Business Horizons with Pattern Recognition
If you want to see new opportunities for your business and increase your decision-making speed and accuracy, begin by looking outside your own business—even outside your industry—at trends and patterns that you can apply to your own organization. Ask yourself, “How do others do what they do?” The fact is that you can learn from observing others companies’ patterns of how to change, and in turn solve problems, make decisions, and grow your business faster than ever before.A failure to recognize an impending problematic pattern can be just as devastating to a Mom & Pop business as it is to a hospital or NASA or to a CEO’s career. Enron had a pattern of corporate corruption and failure of personal responsibility. MCI had a pattern of bad investment and then later fraud to cover those bad investments. All of these things were patterns which we can look back on in retrospect, as the books are open for everybody, and from outside industries we can say, “It was obvious this was happening.” And yet the people inside the industry, the “experts,” were looking at the same patterns and could not see them. They lacked perspective from the outside, just as we, in our own industries, can fail to have the perspective on ourselves that others may have of us.So how can you improve your pattern recognition skills to enhance your business? Consider the following:Look beyond your own niche. You must be able to pull back your blinders to recognize those patterns that tell you something has changed or is about to change. Within your own company, you may have great pattern recognition and the ability to anticipate what’s going to come next, but if you can’t see outside your company’s bubble, you may be left in the same situation that IBM was in 1978. They only looked at their own company’s patterns and did not see the coming of t

Hundreds of foreigners residing here are starting up new businesses in Panama every year. Panama offers many opportunities for business entrepreneurs. You can start a bar, restaurant, retail shop, hotel, bed & breakfast, provide tour-guides or professional services. Maybe you are thinking about opening a new business full time? Or, you are retired and thinking of passing the time by engaging in a part-time business. Whichever you do, Panamanian laws must be understood and complied with. That's why the following information will be useful for every reader who is thinking about starting a business in Panama.

LEGAL BUSINESS STRUCTURE Your first consideration is to decide what type of business structure to use.

There are 3 normal business entities here in Panama: Sole Proprietor where you and your spouse & family operate a business as sole owners. Partnership where you team up with one or more persons in running the business. Corporation where you register with the government as a company issuing stocks, having a Board of Directors and corporate officers. While a sole proprietorship can be an oral agreement between close family members, the other two entities need the assistance of a Panamanian lawyer. That's because legal documents need to be prepared forming a Partnership or Corporation. If they are wrongly prepared, they will be legally null and void causing a business legal nightmare for its members.

Let's examine the different legal structures here in Panama:

Corporation (Sociedad Anonima) Corporations are formed under the Law No. 32 of 1927 and the Commercial Code (Decree-Law No. 5 of 1997, Article 5). A Panamanian corporation is formed by two persons (called Subscribers) or Nominees (who act on behalf of absent foreigners) who execute legal documents called the Articles of Incorporation. Those documents are filed with the Panama Public Registry office. After the corporation is formed, only one shareholder will be required. Corporate shares are issued which can be of various classes, can have par value or not, may be officially registered, or can be discreet Bearer shares. The corporation must have a resident Registered Agent (Panamanian lawyer). There must be at least three Directors whose names must be in the Articles of Incorporation. Any changes of Directors must also be filed with the Public Registry. Unless the Articles are changed or the corporation merges or dissolves there will be no other filing requirements.

Foreign Corporation If you already have a corporation in another country, it can do business in Panama by filing the following documents at the Public Registry Office:
1. A notarized Spanish translation of the Articles of Incorporation;
2. Board of Directors minutes authorizing the Panamanian registration;
3. Copies of the most recent financial statements;
4. A certificate from a Panamanian Consul confirming that the company is organized according to the laws of its place of incorporation;
5. Notification of the transfer of capital to the Panamanian operation.

General Partnership General Partnerships are permitted in Panama. As with most countries, the partners will have unlimited civil liability. That means every partner can be sued even if only one of them commits an error in the course of business.

Limited Partnership Limited Partnerships (called Sociedad de Responsibilidad) are also permitted in Panama. They are governed by the Commercial Code and Law No. 24 of 1966. There may be from 2 to 20 partners with no restrictions as to their nationalities or domicile. Their Capital must be at least $2,000 up to $500,000. The names of the partners must be registered with the Public Registry Office including the amount of Capital each contributed. Each partner's civil liability for the Partnership's debts is limited to the amount subscribed to but unpaid. If the Partnership appoints an independent administrator, his/her name must also be registered. No meetings are required if the Partnership has 5 members or less. Otherwise, a meeting must be held at least once a year. There are no requirements for annual returns or filing of any accountings.

An alternative to a Sole Proprietorship is to create an Individual Limited Proprietorship (Empressa Individual de Responsibilidad Limitada). This is set up in the same manner as a Limited Partnership except having only one member. The individual transfers his/her assets to the business. Business civil liability is limited to the amount of the committed assets.

Civil Partnership A Civil Partnership (Sociedad Civil) is allowed by the Commercial Code and Law No. 24 of 1966. The liability of the partners is unlimited. This type of partnership is often selected by professionals such as lawyers and accountants.

Commandite Company The Commandite Company (Sociedad en Commandita) is a hybrid partnership and corporation also governed by the Commercial Code and Law No. 24 of 1966. At least one partner must have unlimited liability, while the liability of the limited partners is limited to the amount of capital subscribed. This type of legal structure is seldom used in Panama.

GOVERNMENT PERMITS & LICENSES Once you have either formed a Panamanian Corporation, or a Partnership, or are acting as a Sole Proprietor, you will need to register your business with the government before opening for business.

The 6 steps provided below are the requirements for registering your business with the national and local governments:

1. Income Tax Registry This is called "Registro Fiscal" with the Panamanian government. The Panamanian government has a website explaining what is necessary to register in Spanish. Go to the govt. website at: www.dgi.gob.pa This is the government Revenue (Tax) Service where your company receives its income tax id number called the Direccion General de Ingresos. You will need to keep records of income and expenses and file an annual income tax (or corporate tax) return and pay any taxes owed.

2. Commercial License Another Panama government website will give you information regarding getting a commercial license in Spanish at: www.mici.gob.pa This Ministry is called the MINISTERIO de COMERCIO e INDUSTRIAS, translated as the Ministry of Commerce & Industry. This is otherwise known as your Business License. Every business in Panama is required to have one.

3. Municipal Taxes After getting your Panamanian government licenses, you need to register with your local municipality in order to pay your municipal taxes.

4. Social Security Number Then you must go to the Registro Patronal de la Caja de Seguro Social (CSS) to get a Social Security number for your business and for yourself.

5. Sanitary Permit If your business deals with food or beverages, you will need to get Permisos Sanitarios with the Ministerio de Salud. That translates as a Health Certificate from the Ministry of Health for permission to operate a sanitary business. Every employee (including owners & management) who prepare or serve food or beverages (or are in the vicinity of food or beverage preparation or service) must obtain two different Permits. One requires a medical & dental examination at a public hospital. The other is issued after attending a two day health & safety course.

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreigne

Low Overhead Business: Big Business Low Cost
The hardest part about getting into business is the startup capital that you need. Most businesses require a high initial investment that keeps many starting entrepreneurs from being able to get into business in the first place. But, the truly ingenious business ideas are the ones that allow for low startup costs and high potential income.Looking at the many different franchise opportunities, you’ll be able to begin to see what I mean. Subway seems to top the list of best franchise opportunity no matter which list is comparing it. That’s because they have a great marketing package with a rather famous speaker who can boast of losing a massive amount of weight. New celebrities are joining the ranks and starting to do Subway commercials as well. That’s why a Subway is bound to be successful.But, look at the startup capital you are going to need to open a Subway for yourself! The franchise fee itself is $15,000. But, that’s not all! That’s just the surface. Your total investment can be as low as $75,000, but it can be as high as $220,000 to get started. And then there’s the little unknown detail that is hardly advertised. A royalty of 8% is also charged for the right to have a Subway. For some people, it’s not hard to come up with that initial investment money. But for most beginning entrepreneurs, that initial investment money takes them out of the running.For as low as about $20,000, you can get started in a janitorial business that services office buildings. You’ll only need as low as $8,600 for a franchise fee and then another $11,300 is about as low as you can go for the initial investment for all startup supplies and everything. That’s much less than the $235,000 you would need for a Subway. But, even a janitorial service can cost a great deal to get into if you don’t have that kind of

y two persons (called Subscribers) or Nominees (who act on behalf of absent foreigners) who execute legal documents called the Articles of Incorporation. Those documents are filed with the Panama Public Registry office. After the corporation is formed, only one shareholder will be required. Corporate shares are issued which can be of various classes, can have par value or not, may be officially registered, or can be discreet Bearer shares. The corporation must have a resident Registered Agent (Panamanian lawyer). There must be at least three Directors whose names must be in the Articles of Incorporation. Any changes of Directors must also be filed with the Public Registry. Unless the Articles are changed or the corporation merges or dissolves there will be no other filing requirements.

The 6 steps provided below are the requirements for registering your business with the national and local governments:

3. Municipal Taxes After getting your Panamanian government licenses, you need to register with your local municipality in order to pay your municipal taxes.

4. Social Security Number Then you must go to the Registro Patronal de la Caja de Seguro Social (CSS) to get a Social Security number for your business and for yourself.

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreign

Succeeding at the Interview
In order to get the job, you have to show up as enthusiastic, knowledgeable and “right” for the position. There are ways you can assure this. The tips below are just a few things to remember when you are in the interview setting.Your job in the interview is to make the hiring manager like you well enough to want to hire you over all the other qualified candidates. Since you will be “liked” within the first five minutes of the interview, be very careful at that first impression. Are you dressed modestly and appropriately? Ladies, did you leave the cleavage-showing sweater at home and wear a pretty blouse that flatters you but is not too revealing? Is your skirt at an appropriate length? Gentlemen, did you show up in a jacket and tie? Are your shoes shined?While you want to know about the company you are applying to, don’t waste the interviewer’s time by trying to demonstrate that you have studied the company. Let that come out more naturally as you answer the questions that the interviewer wants to ask.Be very careful that you take your lead from the interviewer. You don’t want to direct this interview, but you DO want to be responsive to the interviewer.

s (called Sociedad de Responsibilidad) are also permitted in Panama. They are governed by the Commercial Code and Law No. 24 of 1966. There may be from 2 to 20 partners with no restrictions as to their nationalities or domicile. Their Capital must be at least $2,000 up to $500,000. The names of the partners must be registered with the Public Registry Office including the amount of Capital each contributed. Each partner's civil liability for the Partnership's debts is limited to the amount subscribed to but unpaid. If the Partnership appoints an independent administrator, his/her name must also be registered. No meetings are required if the Partnership has 5 members or less. Otherwise, a meeting must be held at least once a year. There are no requirements for annual returns or filing of any accountings.

The 6 steps provided below are the requirements for registering your business with the national and local governments:

3. Municipal Taxes After getting your Panamanian government licenses, you need to register with your local municipality in order to pay your municipal taxes.

4. Social Security Number Then you must go to the Registro Patronal de la Caja de Seguro Social (CSS) to get a Social Security number for your business and for yourself.

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreign

The Single Most Important Aspect of Your Career
Do you want to get a promotion and make a lot more money? Do you want to be recognized for your hard work? Do you want to keep your job and not be downsized? In fact, do you want to know the secret to be Upsized? The most important skill you will ever learn is how to study and understand Office Politics.Office politics play a very important role in whether you get a promotion, an award, the job that you want, or the compensation that you receive. Virtually every aspect of your professional career is influenced by social politics. The proper understanding of the social “food chain” in your work space is essential for your professional success and financial well-being.To understand why the organization works and how to use that information to your advantage, you must first understand how the “Big Fish” act and think. Who are the “Big Fish”? They are the decision makers, the people who are up-and-coming in the company and the people who hold ultimate power in the company. These are the CEO’s, Presidents, VPs, managers, and supervisors who are what I consider to be “in favor”.When it comes to these “Big Fish” they typically care only about two things. The first is how they can take credit for increasing the effectiveness of the company and the second is who around them can get the results they need to be successful. To summarize, for these people it is all about self-preservation and self-promotion.Are the “Big Fish” unethical or self-absorbed? No, the successful people just want excellent employees working for them and they expect results. If you were in a dog-sled race would you want a team of Siberian Huskies or Chihuahuas? The answer is obvious; you would want to win the race so you would want the best team available.Can this information be helpful to you? Let me ask you:<

rtners is limited to the amount of capital subscribed. This type of legal structure is seldom used in Panama.

The 6 steps provided below are the requirements for registering your business with the national and local governments:

3. Municipal Taxes After getting your Panamanian government licenses, you need to register with your local municipality in order to pay your municipal taxes.

4. Social Security Number Then you must go to the Registro Patronal de la Caja de Seguro Social (CSS) to get a Social Security number for your business and for yourself.

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreign

Email - The New and Effective Customer Service Solution
Do you remember the days when the only way to communicate with someone was either in person or on the phone? It actually does not seem that long ago does it? Where has the time gone? Times have changed and they’ve changed fast. Now you can communicate through email, instant messaging (IM), voice over IP (VOIP), video conferencing, web chat, and the list goes on. All of this really happened in the last three years or so.Every year, there is a new technology that offers us an easier or better way to communicate with friends, family and business associates. This constant change in communication allows us to easily stay in touch with our contacts through the Internet. Now we don’t have to write letters or pay huge long distance bills to call our relatives who live in another county or even in another state; we can simply jump on our computer and start IMing them almost instantly… hence the term Instant Message.So how does this all affect business and more importantly, for the purpose of my article, Customer Service?Well, just ten years ago it was only feasible to conduct business either on the phone or in person. And in terms of Customer Service, it was only possible to offer support and respond to customer inquiries through phone conversations or personal letters. In today’s Internet world, things have changed. Now companies are offering Customer Service by email in response to support requests and customer inquiries. These companies, which have converted from phone support to email support, have enabled their business to reduce overhead, cut down on resources and provide an immediate return on investment.Now you may be asking yourself… doesn’t it take longer to respond to support and service requests? The answer to this is sometimes, yes. I’m not saying you cannot pick up the phone nor ha

But, there are exceptions:

1. Required technical or specialized staff unavailable in Panama increases your quota to 15% foreigners. You can also petition the Ministry of Labor for a higher quota.

2. Companies having less than 10 employees can employ 1 foreigner.

3. Companies can employ foreign Managers and Supervisors when the company does business abroad from Panama with prior approval by the Ministry of Labor.

You must obtain a work permit from the Ministry of Labor for every foreign worker.

Panama’s Labor Laws The Labor Code of 1971 deals with Labor Relations including the rights and duties of employers and employees. "Subordination" is the key concept of the law. Any relationship where one person is subordinate to another falls within the law. It makes no difference whether the relationship is or is not described as "employment".

There are certain basic employee rights which must be followed:

1. Written Employment Contract

2. Minimum Wage

3. Maximum Hours

4. Paid Vacation Time

5. Firing Employees

Employee Contracts You must have your employees sign a written employment contract called an Inscripcion Contratos con trabajadores. You must file two copies of the contract with the Ministerio de Trabajo y Desarrollo Laboral. Employers can easily terminate the employee during the first two years. After that, employees have greater protection under the law. The law lists "just causes" for dismissal. Unlawful dismissals can result in minimal compensation payments. Both parties can contract for "fixed terms". Minimum wage levels vary according to the employee's seniority.

Vacations: There are 11 public holidays per year. In addition, employees are entitled to a 30 day vacation every year. 13th Month: The law also requires a 30 day paid bonus every year which is known as "the 13th month". This bonus is estimated at one-salary day for every 11 days of work. The 13 month bonus is paid in 3 equal installments: April 15th, August 15th, and December 15th every year.

Unions Unions are allowed in Panama. Unions can collectively negotiate on behalf of the employees. Strikes are lawful under defined circumstances after a majority vote of the member employees. Conciliation is mandatory before a strike can occur. However, only around 11% of the private sector employees are unionized.

Leasing Office or Business Premises Panama's laws regarding leasing commercial space is similar to most English speaking countries.

1. It needs to be in Writing.

2. It needs to properly describe the location of the pre-mises.

3. It needs to address the amount and frequency of the lease payments, length of the lease period, whether there is a Security and/or Damage deposit, who pays for gas, water, electricity, and repairs. It will also contain provisions for late rent payments, tenant property damage, and renewal of the lease term.

4. It must be signed by the property owners (or legally authorized representatives) and the tenants.

5. All signatures must be Notarized before a Notary Public.

There are many more terms and conditions which should be included in a standard commercial lease which is why you should consult with a Panamanian attorney before signing one prepared by your landlord.

Business Bank Account Even if you are a sole proprietor, you should never co-mingle your personal funds with business monies. That is why you'll need to open a bank account for your business. Partnerships and Corporations definitely need to open separate Business or Corporate Bank Accounts.

When you open an account for a corporation, partnership, or a business most banks require the following information and documentation:

1. Most banks require a personal interview, while some banks may allow a telephone interview.

2. A clear copy of the account's Signatory and each corporate Director's Passport (must include the photo & personal information page, and Panama entry stamp page).

3. A clear copy of a second photo id (such as a driver's license or national id card).

4. Two bank references for each Director and account Signatory. These references must entail the satisfactory conduct of the account holder and that the banking relationship had been ongoing for a minimum of 2 years. It would be helpful if the references also confirm the person's residential address. Many Panamanian banks require the references be specifically addressed to that bank's branch. Some banks may accept only one bank reference letter (especially if you have done all of your banking with only one bank).

5. Two professional references for each Director and account Signatory. These references may be written by one's accountant, lawyer, stock broker, insurance broker, real estate broker, or employer. They should be written on their company letterhead. These must include the duration and nature of their business relationship with the applicant. Only an Original letter will be accepted.

6. Proof of Address: You must provide a copy of a utility bill (phone, water, electricity, cable TV, or Internet service) which contains your name and address.

7. A "Company Profile" letter must be submitted which briefly describes the type of business the account holder will engage in. This will include the location of the business, the products or services you are selling, the nature and expected volume of business, the origin of the funds to be deposited, an estimate of the monthly or annual amount of funds to be deposited, and the reason for opening a bank account in Panama.

It will help if your Panamanian lawyer accompanies you to the bank in order to make sure the process goes smoothly.

Once all of these documents have been received, they will be forwarded to the bank's Compliance Officer who reviews the entire application to insure no money laundering will occur. This process will go smoother and may have less required documents if you first go to the Panamanian bank where you already have a personal account as they already know you.

Taxes Now that you are licensed, moved into your commercial space, hired employees and have a bank account; you need to worry about taxes.

Conclusion There are many legal documents, government applications, contracts, and laws one must comply with in order to start a business in Panama. That is why you should consult with a Panamanian lawyer who is knowledgeable with Panama's Business, Labor, Tax, and Real Estate laws before going into business.

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