Limited Liability Companies (LLC) are regulated by Law 4 of January 9, 2009. These corporations are created with the objective of carrying out legal, civil or commercial activities either in Panama or in any other part of the world.
According to the law these must include in their name the phrase Limited Liability Company or the initials S. de. RL.
Incorporation of Limited Liability Companies
They may be formed by two or more natural or legal persons who may also act as administrators. The company must have a private document registered or by public deed known as a social pact. This agreement must be registered in the Public Registry.
The social capital of the SRL is composed by contributions of quotas of its partners and could be increased or be reduced as it is described in the social agreement.
Elements of the social pact
- Identification and address of the company’s partners and subscribers
- Address of the company
- Duration of the company
- Corporate purpose
- The amount of the authorized capital expressed in any currency, the shares or quotas in which it is divided and the value of each
- Designation of persons in charge of the administration and representation of the company
- Appointment of general dignitaries or proxies
Members must obtain a certificate of participation signed by one of the administrators. The certificate must include the name of the company, authorized capital stock, indication of registration in the public registry, name of the owner partner, value of the partner’s participation, place and date of the issuance of this certificate.
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