BLOCKCHAIN AND CRYPTOCURRENCIES IN PANAMA

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About Blockchain and Cryptocurrencies in Panama

With the rapid growth of blockchain technology and the evolution of cryptocurrencies, it is necessary to keep up to date.

We believe that the development of public and private blockchain solutions opens numerous opportunities for innovators and existing companies.

Technologies such as these ones are often accompanied by legal challenges. For that reason, Kraemer & Kraemer is available to support you on your crypto and blockchain related matters.

What is blockchain and how does it work?

The blockchain, also known as DLT – distributed ledger technology, is a system of recording information that makes it difficult or impossible to change, hack or cheat the system. This is a digital ledger of transactions that is duplicated and distributed throughout the network of computer systems.

As a database, a blockchain stores information electronically in digital format. The main purpose is to allow digital information to be recorded and distributed, but not edited.

In this way, a blockchain is a basis for immutable ledgers or transaction records that cannot be altered, erased, or destroyed.

Cryptocurrencies in Panama

Cryptocurrencies have become a living example of the use of blockchain technology. Cryptocurrencies such as Bitcoin or Ethereum are used to decentralize financial services, people can use them to make payments and reduce transaction fees.

Kraemer & Kraemer can assist you

Our team of lawyers and experts in the area will continue to be informed about the evolution of the world of crypto and blockchain technology as well as regulations on the matter. Additionally, services purchased through our website can be paid for using cryptocurrencies such as bitcoin, Litecoin, or Ethereum.

Related Services

We can assist you with the following services related to the Blockchain and Cryptocurrency industries:

Corporate Structuring in Panama

Limited Liability Company (LLC)

This type of company can perform any lawful civil or commercial activity. It requires a minimum of two subscribers and two partners.

To set up an LLC in Panama there must be registered articles of incorporation including the following information:

  • Company’s name
  • Subscribers’ and partners’ identification as well as their domicile
  • Company’s domicile
  • Company’s duration
  • Stated capital amount and how it is divided
  • Company’s administrators’ name
  • Resident agent
  • Any other information the subscribers consider necessary

Costs & Timeframe

You can choose to set up your LLC with or without nominees

With nominees: USD $1,700

Without nominees: USD $1,400

The setup process of an LLC can take up to two weeks.

Pros & Cons

When it comes to LLCs, pros include transparency and asset protection.

Some cons include that partners are publicly disclosed, it requires a minimum of 2 partners, meaning there is no sole proprietorship.

Contact us to provide the proper legal assistance to set up your LLC.

International Business Corporation (IBC)

An IBC, also known as a Sociedad Anónima, is a corporation limited by shares, which can be issued nominatively.

Some of the necessary elements required to set up an IBC in Panama are:

  • Minimum of three directors (president, secretary, and treasurer)
  • One shareholder
  • Office address and local agent
  • Authorized capital can be any amount since there is no a minimum requirement

Costs & Timeframe

You can choose to set up your IBC with or without nominees

With nominees: USD $1,700

Without nominees: USD $1,400

The setup process of an IBC can take up to five days.

Pros & Cons

No annual meetings are required and shareholders are not publicly required, allowing for more confidentiality.

IBCs are also versatile and can have many uses such as asset holding companies, acting as trading companies, or investment holding companies.

Cons include that there are accounting filing requirements and a 5% transfer tax on shares.

Contact us to help you set up your IBC.

Corporate Structuring in Offshore Jurisdictions

We offer corporate structures in offshore jurisdictions including Nevis and Saint Vincent as the favorite ones.

Most offshore jurisdictions require at least one director and shareholders, managers, and members vary depending on the country.

Saint Vincent

Besides being an internationally reputable jurisdiction, this jurisdiction is characterized by its solid financial regulations and confidentiality. LLCs in Saint Vincent are legal entities that guarantee structure flexibility.

Requires one manager and one member and no minimum capital amount.

Contact us now to open your Saint Vincent corporation today.

Nevis

Nevis offshore company formation costs are among the lowest starting at USD $1,400. Once it is incorporated, a Nevis offshore company can carry any legitimate business offshore.

Requires one director and one manager named by the director and there is no minimum authorized capital required.

Open your Nevis corporation today. Contact us now.

View our full list of available offshore jurisdictions.

Asset Protection & Estate Planning

Panama Private Interest Foundation

Oftentimes the Panama Private Interest Foundation can be mistaken for only non-profit-oriented actions. However, it can also carry on certain business activities when convenient for the foundation. Foundations can be used to benefit people, corporate entities, and institutions of any kind.

Among the benefits of a PIF are the beneficiary’s privacy, there is no need for payment or deposit for incorporation, no need to file annual financial reports when there are no operations, and accounting books can be maintained in Panama or abroad.

Elements of a PIF include founder, council, protector, beneficiaries, letter of wishes, and foundation by-laws, or it can be also used to avoid the probate process.

Nevis and Saint Vincent and the Grenadines Trusts

Governed by the International Trust Act of 1996, investors can benefit from the robust legal structures of the St Vincent Trust. St Vincent offers a short statute of limitation of 2 years of pursuance of any claims to the St Vincent Trust.

Some benefits of a St Vincent Trust include a friendly application that can be done in around three days, no forced heirship, asset protection, and rigorous privacy legislation.

The Nevis Trust, also known as Nevis International Exempt Trust, is one of the leading offshore trust formation structures in the world offering strong asset protection benefits and tax incentives.

Its elements include a protector, a settler, beneficiaries, trust deed, and trustees.

Some benefits of a Nevis trust are that it can be established remotely, and there is no need for annual reporting, privacy, and confidentiality.

Contract Structuring and Revisions

Investment Subscription Contracts

The investment subscription contract must define the terms and conditions for a party’s investment into a private placement offering or a limited partnership.

The common elements in this type of contract are the name and domicile of the interested parties, the investment purpose, the effective date agreed upon, and the signature of both parties.

The Kraemer & Kraemer team can assist you in drafting and defining the structure of your investment subscription contract. Contact us today!

ICO Structures

ICO stands for Initial Coin Offering and it allows funds to be raised for new cryptocurrency ventures. The whole process starts by releasing a white paper stating what the project is about, the needs it will relieve, and the capital investment required. The white paper must also include the cryptocurrency tokens’ number that the founders will keep.

Operating without a structure is not recommended, contact us to guide you through the process and help you set up the appropriate corporate structure for an ICO.

Terms & Services

Terms & Services contracts include issues related to a website’s behavior and service user. It covers elements such as third-party websites, content ownership, copyright, payments, and any other information.

These contracts usually refer to a disclaimer stating that the website’s owner can’t be held responsible for any incorrectly displayed content. Although it is recommended that the contract is structured to represent the company and the services it offers.

Send us a note to info@kraemerlaw.com for more information and assistance.

Contract Draft & Negotiation

Whether you are an investor, resident, retiree, or owner of a corporation, it is key that you know how Panama contracts work. Panama contracts can be used for banking, and employment real estate, among others. We can assist you to draft and negotiate loans, services, and virtual office contracts.

Since contracts between Panamanian entities must generally be in Spanish we can provide you expertise with translations and reviews for local legal issues, as well as specialized expertise for certain types of agreements. Contact us today!

Learn more here.

Corporate Bank Account Opening

Panamanian Banks are among the most stable banks in the region, being home to one of the largest international banking centers in the world.

Our team of expert lawyers can assist you with bank account opening transactions. We can help you find the right bank and prepare the required documents making sure you comply with the Panamanian laws.

Intellectual Property & Trademark

It is recommended to register your trademark to guarantee all legal rights. Any natural or legal entity can apply for trademark registration.

The process must be filed through the Register of Intellectual Property in Panama, also known as the DIGERPI. Some requirements include:

  • Power of Attorney
  • Affidavit of use of the trademark
  • Classification of products and services protected by the trademark
  • Copy of the identification card of the company’s legal representative
  • Photocopy of the passport of the Legal Representative of the Company

Contact Us

Doing business and the crypto environment and regulations in Panama are easier with the right legal partner. The Kraemer & Kraemer team is ready to answer your questions and assist you along your journey. Contact Us today!