An SRL, or Sociedad de Responsabilidad Limitada, is a Panamanian structure comparable to a Limited Liability Partnership (UK) or a Limited Liability Corporation (USA). This type of entity, although not popular as the well known Panama S.A., is equally important and offers significant advantages in certain cases.
The Limited Liability Companies in Panama are regulated by the Commercial Code and Law 4 of January 9 of 2009 (hereinafter “the law), which replaces Law 24 of 1966.
Among the most interesting features of the Panama SRL we find the following:
1. The new Law provides for an unlimited number of partners, which can be individuals or corporate bodies, with no restrictions as to their citizenships or country of residence. However, two are the minimum number of partners required. Nominees can be appointed to reach greater privacy.
2. The new law does not provide for a minimum or maximum capital, therefore leaving it open.
3. The names of the partners must be registered with the Panama Public Registry, additionally specifying the Capital each contributed.
4. The economic liability of each partner for the obligations of the company will be limited to the amount of their participation made or promised.
5. One Manager can be appointed, in which case it can be an individual or corporate body of any nationality or jurisdiction of incorporation. Also in this case his/her name must also be recorded on public records.
6. No meetings are required to be held, unless otherwise is stated on the articles of incorporation.
7. If the articles so dispose, the manager of a Panama SRL can represent the company in any judicial or extrajudicial proceeding, but it will require a special power of attorney to carry on acts that go beyond the normal course of business. He/she will need authorization to transfer assets and to encumber assets or secure debts of the SRL.
8. Once the SRL is recorded it acquires a different legal personality from that of its members and managers.
9. For tax purposes, this is a transparent vehicle, that at least in the United States it can be considered as a “disregarded entity”.
10. The name must bear one of the following two endings: “SOCIEDAD DE RESPONSABILIDAD LIMITADA” o S. DE R.L. The name cannot be similar in any way or form to a name already registered, notwithstanding if it is a different type of company, like an S.A., for example.
To incorporate an LLC Company in Panama with OCI usually costs $US1,500 and from 2nd year $990. We can also supply Nominee Directors (3) for $1,200 per year.
Would you like to know more? Then please Contact Us:
www.offshoreincorporate.com
info@offshorecompaniesinternational.com
ocil@protonmail.com
oci@tutanota.com
oci@safe-mail.net
ociceo@hushmail.com
DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
