Types of Panama companies
Entrepreneurs looking in invest in Panama need to decide on type of Panama company they wish to incorporate in Panama. Choosing a wrong type of business might need to having to redo the whole process.
Panama Sole Proprietorship – when you form a Panama sole proprietor business, it is owned and operated by an individual. This is usually not advisable since the business owner is responsible for any debts and court decisions against the company.
Iindividual Limited Proprietorship (also referred to as Empressa Individual de Responsibilidad Limitada) is unique form of Panama business formation where the entrepreneur has all the liability limited by the assets invested in the business.
General Partnerships in Panama – Panama allows two or more entrepreneurs to form a Panama. Partners invest equally and share profits equally as well. The partners are responsible for any debts together.
Limited Partnership in Panama (also referred as Sociedad de Responsibilidad Limitada) is formed by at least two members and maximum of twenty. It is regulated by both the Commercial Code and the Law no 24 of 1966. The annual accounting and financial statements are not mandatory. The liability of the partners is limited to the amount of unpaid but subscribed capital.
Civil Partnership in Panama is popular among lawyers, accountants or other professionals who come together. Partners are responsible personally for debts.
Panama Corporation (also known as Sociedad Anonima) must be formed by at least two entrepreneurs and must have at least one shareholder. When you incorporate a Panama corporation, all its debts are not the responsibility of the investors. Many entrepreneurs choose Panama Corporation format for Panama Offshore Company Panama formation.
Panama Limited Liability Company (LLC) i requires a minimum of two shareholders, a registered agent and at least one shareholder. A Panama Limited Liability Company (also called Panama LLC) can be formed as a local Panama company of a Panama Foreign company..