Panama

PANAMA

PANAMA

COMPANY DETAILS

Amway de Panama, S.A.

Centro Comercial Multimax
Local No. 11
Avenida Ricardo J. Alfaro
Panama City
Republic of Panama

Phone: 507-236 4515
Fax: 507-236 5738

www.amway.com.pa (Public & Distributor Website/MultiLingual)

amarilis.Ilanes@amway.com (Email)

Opened July 1985

Plan Basics

Overview

Purchasing Products
All Amway Business Owners may purchase products directly from Amway.

Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check unless direct deposit is requested. Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

PV/BV Transfers
PV/BV transfers are not available.

Retail Margin
30% is allowed to Amway Business Owner’s. Retail margin is the profit that the Amway Business Owner or Member receives for selling products to customers that are not in the Amway Business.

Single Line of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
- Cross border sponsoring allows for personal sponsoring in all markets
- ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed
- Combined volume from all markets allows an ABO to reach the 21% level more quickly
- Regional Business Kit
- Regional SIP Program
- Regional Bonus Statement

Performance Schedule

PV Performance Bonus
10000            21%
7000              18%
4000              15%
2400              12%
1000               9%

PV/BV Ratio
The average PV/BV ratio for Amway products as of April 2013 is 1.35.

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30%.

Starter Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years age and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration form (original) by post mail (He/she may also fax the Registration Form before sending the original so they can buy products immediately).

This process can also be completed using the Internet site www.amway.com.pa where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is registered at that moment and they can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway Panamá within the first 90 days.

Cost of Starter Kit
$15.00 USD (including VAT)

Sponsoring
In order to register a new Amway Business Owner, the sponsoring Amway Business Owner must ensure that all independent Amway Business Owners registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway Panamá.

Business/Distributor Types
In addition to the Amway Business Owners, Amway Latin America established two additional alternatives to have access to the Amway Products and Services called Associate and Client.

An Associate is able to buy Products directly from Amway Panamá at Distributor cost and resale them. Associates can not sponsor and bonuses are not received.

To become an Associate the person can be register by internet, the 800 number or in the Amway Shop he/she has to fill an application which requires basic information, an associate must be referred by a known ABO otherwise this person must be registered as a client. The cost to become an Associate is of $ 31.50 USD this cost covers a Product Catalog and special communications for a fiscal year (September - august).

A sponsor is required to sign in as an Associate and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can not become Associates.

A Client is able to buy Products directly from Amway Panamá at a retail price and can be able to obtain a discount according to the amount purchased. Clients can not sponsor and bonuses are not received.

To become a Client the person can be registered by internet, the 800 number or in the Amway Shop by providing their name, telephone number, e-mail address, name of the ABO who is registering him/she, in case the person has not been refer and does not an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is not cost to become a client.

A sponsor is required to be register as a client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become clients.

Establish a Second Business

Amway Business Owner Registration Requirements
It is not necessary to have citizenship to start a business.

ABOs are responsible for comply with any local tax payments if applicable.

Doing business by a foreigner includes but is not limited to selling products, receiving bonuses and sponsoring.

Visa Requirements
Please check the following website for visa requirements and information:

www.panamatramita.gob.pa

ABOs are responsible for complying with immigration status.

Formation and Registration of Your Business
Any foreign ABO can have a business in Panama as an International Sponsor (as outlined in the Business Reference Guide) or as a Local Sponsor.

As in other countries, it is necessary to define the kind of ABO business is desired:
- A Single Person ABO (we recommend this option), or
- A legal Entity ABO (S.A. – sociedad anonima or S.R.L. – sociedad de responsabilidad limitida)

Single Person ABO
Buy a local starter kit, to be sponsored (payment in local currency)

Legal Entity ABO (S.A. or S.R.L.)
An ABO can choose to be an owner of a legal entity (S.A. or S.R.L.). In this case, it is necessary to open a Panamenian S.A. or S.R.L. company. The Registration form must be submitted and processed in the individual name(s) of the ABO. The ABO can then request the transfer of ownership to the Corporation or LLC through the affiliate. Please note the sole purpose of the Corporation or LLC must be the operation of the Amway business. No other business activity can be conducted through the Corporation or LLC.

Amway recommends that you consult qualified professionals and pertinent government authorities to prepare the required documents that need to be filed.

To obtain the taxpayer number, please go to the following site:

As with your primary business, your second business must be renewed each year with the affiliate.

Required Documents for Registration
- Copy of your Passport’s front page
- If you want to do business through a S.A. or S.R.L., you will need to provide a copy of the company’s Articles of Incorporation.

Bank Requirements
- CITIBANK www.latinamerica.citibank.com/panama/homepage.html
- Original and copy of their passport.
- An email from the Citibank executive in charge of their Citibank account in the country of origin. Citibank Panama will contact the Citibank executive to confirm the bank records.
- Be present when the bank account is opened to complete and sign the bank application.
- If the Citibank executive in the country of origin confirms that this person has a good bank record, the opening of the account could be completed the same day.
- $50 is the minimum to open the saving account.

- BAC (Bank of Centralamerica) www.bac.net
- A presence is required in the US (BAC Florida Bank)
- Original and copy of their passport
- Two reference letters from different banks in the country of origin
- Proof of income
- Letter to the bank explaining the purpose of the bank account
Amway application
- Be present when the bank account is opened to complete and sign the bank application
- If the person currently has a bank account with BAC, they only need one bank reference letter

The requirements of the BAC are the same as other Panamanian or Latin banks.

Cost and Bonus Payment

- Costs to open a LLC
- Lawyer and accounting costs
- Additional fees for translating, notary and maintenance costs. These are dependent on the size and volume of the activity of the company.

Bonus Payment
Bonus payments are made through deposit in a local bank account (Banco General and Banistmo or local checks). The ABO should provide bank data, bank account number, swift bank number and bank ABA code, a remittance request letter for Amway and an authorization to Amway to deduct a broker’s fee from the total payment. The cost is approximately US$30.00 per operation paid by the ABO. Amway will provide the necessary document to release the remittance.

Affiliate Staff Contact (names / email / phone)

Judith Centeno
judith.centeno@amway.com
507-236-4515

Click the link below to display additional details on how to start a multiple business in this market.

Market Framework Requirements

Ordering

ABOs, Associates and Clients can order Amway products from Amway Panamá by:

Order Entry: phone 00 (507) 2364515 / (507) 800 28-28

Following the next steps:

- Provide your ABO, Associate or Client Number to place an order.
- Confirm that the code number is correct when you are ordering; you can verify this number in the price list.
- Have handy the address where you wish Amway Panamá to deliver your order. This address has to be within the country of Panamá.
- Hours of Operation:
9:00 am to 9:00 pm. Monday through Friday
9:00 am to 1:00 pm. Saturday

Internet Orders
You can also order products through our web site: www.amway.com.pa

Amway Shop
Centro Comercial Multimax. Local No. 11,
Avenida Ricardo J. Alfaro.
Tel. :(507) 236-4515
Fax.:(507) 236-5738
9:00 am to 9:00 pm. Monday through Friday
9:00 am to 1:00 pm. Saturday

Payment Methods

- Order Entry and Internet Orders
- Credit Card (Master, Visa and American Express)
- Deposit in Bank Account
- Debit Card

Amway Shops
- Credit Card (Master, Visa and American Express)
- Debit Card
- Cash
- Deposit in Bank Account

Returns/Refunds
The Amway Business Owner have 30 days after having been sponsored to return Starter Kit for full refund.

Products may be returned under the Customer Satisfaction Guarantee policy. They must present the invoice of the purchase, and clarify the reason for the return.

If excess inventory is returned, a 10% charge for administrative charges is assessed.

Access Information

- In person – at the offices through a Customer Service or Distributor Relations Representative
- By phone – (507) 2364515
- By e-mail: amarilis.llanes@amway.com

Receive Bonus Payments
Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.

This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

ABOs, who have earned a bonus, may receive the payment via bank, electronic transfers by registering the bank account.

The ABO must send a data modification informing their bank account number data:
- Bank
- Branch
- Account Type
- Account Number
- The bank account could be Santander Río or Standard Bank and the titular account name has to be the Amway Business Owner’s name.

If the ABO does not provide a bank account, a check is generated automatically and submitted by post mail to the ABO’s mailing address.

Also the ABO can choose that all the bonus payments earnings will stay in A/R forward so that amount can be use for future purchases.

Renew
All ABOs need to renew their Contract.

An ABO’s initial contract year terminates on December 31, if it is signed prior to August 31, or on December 31 of the next year if the ABO Contract is signed after August 31. The renewal fee and procedures are published yearly in Amway Publications.

Renewal Methods

- Amway Shops
- Order Entry
- Internet web site:www.amway.com.pa

Payment Methods
- Credit Card
- Bank Transfer
- Cash (Only in Amway Shops)