Striking off a Panama Corporation

[Martin Caceres]

Hi All,
I am the Director/President of a Panamanian Corporation, opened some months ago.

The Corporation do not own any properties or has asset of any kind.
The Corporation has never been used, for my business is totally useless here in Panama.
The Corporation has never had any banking account, of course.

Kindly I would like to ask you some general questions about the matter.
How to dissolve this corporation ?
What is the exact legal procedure ?
And when this need to be done (I know after two years from striking off the corporation will be dissolved) ?

Thanks a lot !

 

[negon]

Do you live in Panama? If not I wouldn't worry that much about it. If the company had no activity and you don't even have a bank account for the company then there is no one that should be able to come after you.

Unless you have signed some sort of management agreement or other contract with your agent that can helt you personal responsible for any liabilities or work that is executed for the company I can't see what should happen, why spend money on it?

 

[Martin Everson]

The Corporation has never been used, for my business is totally useless here in Panama.

This comment shows bad planning.

How to dissolve this corporation ?
What is the exact legal procedure ?
And when this need to be done (I know after two years from striking off the corporation will be dissolved) ?

This comment shows you have no idea what you just did. These are questions you should be asking the person who setup that corp. The setup and dissolve procedure is the first questions you should have asked . After all a pilot does not take off in a plane and then ask midway for instructions on how to land the plane .

 

[Martin Caceres]

This comment shows bad planning.



This comment shows you have no idea what you just did. These are questions you should be asking the person who setup that corp. The setup and dissolve procedure is the first questions you should have asked . After all a pilot does not take off in a plane and then ask midway for instructions on how to land the plane .

Do you think this has not been done ?
Do you think it's the first set up of the company I've done ?
Do you know the reason why the business has never started ?
The problem instead is the total incompetence of local people.
If you ask 10 different people the same question , the answer will be in 10 different ways.

 

[Martin Caceres]

Do you live in Panama? If not I wouldn't worry that much about it. If the company had no activity and you don't even have a bank account for the company then there is no one that should be able to come after you.

Unless you have signed some sort of management agreement or other contract with your agent that can helt you personal responsible for any liabilities or work that is executed for the company I can't see what should happen, why spend money on it?

Actually I'm living in Panama.

Never signed any sort of management with the registered agent, or other kind of contract.
No banking account, no properities owned by the corporation.
Never done any business.

 

[negon]

Actually I'm living in Panama.

Never signed any sort of management with the registered agent, or other kind of contract.
No banking account, no properities owned by the corporation.
Never done any business.

I wouldn't worry to much, otherwise, I would get intouch with an certified accountant ask him to make a final balance sheet showing no activity and ask him to close the company, it can't cost a lot, and if it makes you sleep better then do it.

 

[JohnLocke]

I wouldn't worry to much, otherwise, I would get intouch with an certified accountant ask him to make a final balance sheet showing no activity and ask him to close the company, it can't cost a lot, and if it makes you sleep better then do it.

second that...

Alternative you may look into to get an account for the company in Cyprus if possible and use the company for whatever it was intended to be used for.

 

[Martin Caceres]

I wouldn't worry to much, otherwise, I would get intouch with an certified accountant ask him to make a final balance sheet showing no activity and ask him to close the company, it can't cost a lot, and if it makes you sleep better then do it.

Exactly, this is reasonable, without waiting for the natural death and strucking from the register of companies.

 

[Martin Caceres]

second that...

Alternative you may look into to get an account for the company in Cyprus if possible and use the company for whatever it was intended to be used for.

It is always an interesting idea diversifying jurisdictions, even if the ratio between costs and benefits must be verified in advance.

 

[Martin Everson]

Actually I'm living in Panama.

If your actually living in Panama my friend you come under Panamanian law. Get professional advice before you screw up in a banana republic. I don't think locals can setup local companies and just abandon them...lol. It would need to be wound down properly.

 

[Martin Caceres]

If your actually living in Panama my friend you come under Panamanian law. Get professional advice before you screw up in a banana republic. I don't think locals can setup local companies and just abandon them...lol. It would need to be wound down properly.

You are right.
This is really an appropriate advice.
The problem is that very often you could receive non-professional services from local lawyers.
This is essentially the reason why I asked for more information here.
A confirm.

 

[Martin Everson]

You need to speak to your registered agent for the company. We are coming to end of year so in the meantime pay any annual government fees owed for the Panamanian corporation and do any necessary zero account filing.

Assuming the below company is not the one who set it up for you. Speak to them. According to them some 40,000 Panama companies were struck off in 2017.

Striking off: Panamanian Corporations - Gray & Co.

 

[James Turner]

Yes I would definitely suggest contacting your agent if you live in Panama as there could be local ramifications if you simply let the company elapse.

 

[Martin Caceres]

The corporation is in good standing until the end of the year, any annual goverment fees has been paid.

You need to speak to your registered agent for the company. We are coming to end of year so in the meantime pay any annual government fees owed for the Panamanian corporation and do any necessary zero account filing.

The corporation is in good standing 'til the end of the year.

According to them some 40,000 Panama companies were struck off in 2017.

It is not difficult undestanding the reason why...

 

[Martin Caceres]

Yes I would definitely suggest contacting your agent if you live in Panama as there could be local ramifications if you simply let the company elapse.

Of course, this is fundmental.

 

[Martin Everson]

It is not difficult undestanding the reason why...

But knowing about the Panama papers you still felt it was a good idea to setup a Panama company in 2018 .

Firstly ask your registered agent the process to follow and decide from there which direction to go. As you know people don't generally wind down offshore companies who live outside the country of incorporation. At least 40,000 people didn't who lived outside Panama and had a Panama company . Until Panama changed the law a little while back it took 10 years of non-payment of government fees before a company was struck off .

 

[JohnLocke]

The corporation is in good standing until the end of the year, any annual goverment fees has been paid.


The corporation is in good standing 'til the end of the year.


It is not difficult undestanding the reason why...

Wonder why you didn't contact your agent right away and asked him to help you with the closure of the company?

 

[Martin Caceres]

Wonder why you didn't contact your agent right away and asked him to help you with the closure of the company?

Just done now.
Waiting for an answer...

 

[Martin Caceres]

But knowing about the Panama papers you still felt it was a good idea to setup a Panama company in 2018 .

They have become extremely suspicious.
They do not trust anything or anyone, even when it is all clear, safe and secure.
The result : impossible to open a banking account even also you present a solid business plan...

Firstly ask your registered agent the process to follow and decide from there which direction to go. As you know people don't generally wind down offshore companies who live outside the country of incorporation. At least 40,000 people didn't who lived outside Panama and had a Panama company . Until Panama changed the law a little while back it took 10 years of non-payment of government fees before a company was struck off .[/QUOTE]

They still think they live the same reality of 10 years ago... but things have changed, and a lot ...