Panama

As detailed in the Economic Crime (Transparency and Enforcement) Act 2022 (the "Act") introduces a new register, the Register of Overseas Entities (“ROE”) to keep track of the UK property owned by overseas entities. The register includes the details of overseas entities and registrable beneficial owners.

Consequences Of Not Registering Your PANAMA Entity In The Companies House?

• Prison sentence up to 5 years
• Inability to buy, sell or transfer any UK properties

Types of PANAMA Entities Required to Register with the Companies House?

PANAMA Companies

Law No. 32 of 1927 Corporation Law of Panama, establishes the guidelines and regulations for corporations within the country.

This act permits two or more individuals to form a corporation for any lawful purpose and empowers corporations to transact with their assets, including selling, leasing, exchanging, or disposing of them as they see fit.

Additionally, corporations have the authority to issue and sell shares without a designated par value, at a predetermined price.

Non-compliance with this law can result in penalties and legal consequences for the corporation and its partners.

• Private companies limited by shares.
• Public limited companies (PLCs)
• Property management companies.
• Companies Limited by guarantee.
• Unlimited companies.
• Community Interest Companies (CICs)
• Right to manage (RTM) companies.

PANAMA Trusts

The Republic of Panama (Law 1 of 1984) provides a legal framework for the establishment and enforcement of trusts in Panama, codifies the duties and obligations of trustees and authorizes trustees to manage trust property.

May 10th, 2017 saw an updated trust law in Panama with modern concepts to make it more flexible and appealing to foreign individuals seeking to establish a trust overseas.

There are two types of trusts: revocable and irrevocable. Revocable trusts can be altered, while irrevocable trusts are permanent or can only be modified under specific conditions.

Additionally, Panama Trusts offer benefits such as complete foreign participation, no taxation, confidentiality, privacy, asset protection, estate planning and fast formation.

• Discretionary Trust
• Fixed Interest Trust
• Accumulation and maintenance trust
• Purpose trust
• Settlor reserved powers trust

Limited Liability Partnerships in Panama

Panama enacted a new Law 4 of 2009 regulating Limited Liability Companies (LLCs) which governs the entire body. It replaced legislation on the subject dating back to 1966.

It permits these companies to possess assets, open bank accounts and initiate legal proceedings. There are no limitations on the number of partners but the individuals who subscribe to the articles of incorporation are not required to be partners of the company.

The minimum capital requirement for a Limited Liability Entrepreneurship Company in Panama is $500, with a yearly maximum gross income of $1 million. If this income is exceeded, the company must convert to a different legal entity authorized by Panamanian law.

These companies must register in the Public Registry of Panama through a public deed and minutes prepared by a licensed Panamanian lawyer to attain full legal rights and powers.

Types of UK Properties Owned by PANAMA Company Fall Under The Scope of ROE

The types of properties under the scope of ROE is slightly different based on the location of the property:

England & Wales

Following properties purchased on or after 1 January 1999:

• Freehold properties
• Leasehold properties with term longer than 7 years

Scotland

Following properties purchased on or after 8 December 2014:

• Registered plot of land
• Tenancy on a registered lease

Northern Ireland

Following properties purchased on or after 1 August 2022:

• Freehold properties
• Leasehold properties with the term longer than 21 years

At UK Property Accountants, we have specialist ROE team who have dealt with a lot of PANAMA entities and can get your overseas entities registered at speed.