Panama S.A. is akin to what is known as a Limited Company. This article outlines key details for setting up and managing a Panama S.A.
Establishing a Panama S.A. requires KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures for each director, shareholder owning more than 10%, and beneficial owner. Shareholders and directors can be either individuals or legal entities, but the beneficial owner must be an individual.
To set up a Panama S.A., you need three directors, who can also be corporate entities. If sufficient directors are not available, Otonomos can provide Nominee Directors.
For individual directors, the following documents are required:
Certified True Copy of Passport
Certified True Copy of a recent Proof of Address (e.g., utility bill, credit card statement, bank statement)
Additional KYC requirements:
Second Certified Copy of ID
Professional Reference Letter from a Lawyer or Accountant
Source of Wealth Declaration for the Ultimate Beneficial Owners
For corporate directors, the following documents are required:
Certified Copy of Certificate of Incorporation or equivalent
Certified Copy of the Register of Directors
Certified Copy of the Register of Shareholders
Certified Copy of valid passports for the Directors
Certified Copy of a recent utility bill (issued within the last three months) for the Directors
Certified Copy of valid passports for Shareholders holding 10% or more shares
Certified Copy of a recent utility bill (issued within the last three months) for Shareholders holding 10% or more shares
Learn more about the additional KYC requirements [here].
Otonomos can provide Nominee Shareholder positions for your Panama S.A. However, it is important to identify the Beneficial Owner of the entity.
Panama S.A. entities have two renewal periods each year:
First Semester: Entities incorporated between January 1 and June 30. The annual invoice is issued on June 15, with a payment deadline of July 15. Late payments incur penalties.
Second Semester: Entities incorporated between July 1 and December 31. The annual invoice is issued on December 15, with a payment deadline of January 15. Late payments incur penalties.
To keep your Panama S.A. in good standing, ensure timely renewal payments to avoid penalties.
Financial Statements: It is mandatory to prepare yearly financial statements in Panama. These must be filed with the entity renewal to ensure the renewal process is completed smoothly.
Company Dissolution: To properly close down the entity, you should file for company dissolution. This ensures the entity is shut down correctly without any loose ends.
Company Strike Off: Alternatively, an entity can be struck off if it fails to pay renewal fees or submit the required statements. This less formal process occurs when the entity does not meet compliance requirements.