Closing your Panamanian Corporation

You might dissolve your Panamanian company because of the newly enacted Bill 129 of 2020, which created the Resident Agent and the Beneficial Owner Registry. Dissolution will close the company immediately and effectively if:

a) The closing is registered at the Public Registry of Panama;

b) The notification of dissolution is published in the newspaper; and

c) The Directorate of Revenue is also notified about the closing.

Once the company is officially dissolved, beneficial owner details will not be included in the register if closed prior to the register implementation.

The process to dissolve a company it is as follow:

1. Submit to the Public Registry a resolution of the shareholders/directors agreeing to dissolve the company.
2. Publish in a local newspaper within 30 days of registration of the dissolution a notice regarding the closing;
3. File with the Tax Directorate of Revenue the dissolution, which requires the following documents:

• Certification from the Ministry of Commerce indicating that the company does not have an active business license or has canceled its business license.
• Social Security good standing to verify that the company does not owe any social security taxes.
• Copy of the newspaper clippings
• Final tax return for closure.

Regarding the tax return:

For several years, companies have been required by law to have their accounting records in order. Thus, this requirement should be attainable for any compliant company. A Panamanian accountant should prepare this final tax return.

If you require assistance in getting your Panamanian corporation, private interest foundation, or LLC dissolved, please email us to lill@kerycruz.com.