New Model: Limited Liability Microenterprises

Panama is looking to incorporate into the formal sector 185,000 micro businesses who have annual sales of less than $150,000 .

Wednesday, October 16, 2013

From a report by the Cabinet of the Presidency of Panama:

The Cabinet gave approval to a bill that creates Limited Liability Microenterprises ('Microempresa de Responsabilidad Limitada' or MRL) and providing incentives for the inclusion of the informal sector in the formalized economy and authorizing the Minister of Trade and Industry, through Cabinet Resolution to submit the rule to the National Assembly.

In the preamble it is explained that a survey on informality in Panama determined that there are about 185,000 microenterprises that have sales of less than $150,000 a year and who employ more than 320,000 people. Incorporating these informal businesses into the formal sector entrepreneurs will result in a strengthening of the capacity to generate more wealth, create jobs, strengthen competition and reduce poverty.

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