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Panamá Legal Lab: Consulting in Private Limited Company
At Panama Legal Lab, we guide you through the entire process of creating and maintaining your Private Limited Company, ensuring efficient legal compliance and providing customized solutions for your business objectives.
What is an LTD?
What is an LTD?
A Private Limited Company (LTD) is a commercial entity whose capital stock is divided into shares. The main advantage is that each partner's liability is limited solely to the capital they have contributed, thus protecting their personal assets.
This entity combines the benefits of corporations with the characteristics of partnerships, offering flexibility and security. It is currently regulated by Law 4 of 2009, which modernized the regime and simplified its incorporation.
Like corporations, SRLs can be formed with individuals of any nationality and can also be used as offshore companies.
Advantages of an LTD in Panama
Advantages of an LTD in Panama
Limited Liability
Limited Liability
To each member's contribution.
Flexibility
Flexibility
In capital participation and structure.
Minimum Accessible Capital
Minimum Accessible Capital
$10,000 (Does not need to be fully paid).
International Opening
International Opening
Members of any nationality, with no residency requirement.
Offshore Use
Offshore Use
For businesses outside Panama.
Constitution Process
Constitution Process
Partners and corporate purpose: minimum of two partners and definition of the economic activity.
Articles of association: document drafted by a lawyer setting out the rules of operation, duration, and capital.
Capital contribution: represented in shares.
Registration in the Public Registry: formalization of the company.
Registration with the DGI: obtaining the RUC to comply with tax obligations.
FAQs Private Limited Company
FAQs Private Limited Company
How many partners are required for an LTD in Panama?
How many partners are required for an LTD in Panama?
At least two partners are required to form it.
What is the minimum capital requirement for an LTD?
What is the minimum capital requirement for an LTD?
The minimum share capital is USD $10,000, divided into shares. It is not necessary to pay it in full at the beginning.
Can I be a foreigner and set up an LTD in Panama?
Can I be a foreigner and set up an LTD in Panama?
Yes, there are no nationality restrictions on becoming a member of an LTD.
How does an LTD differ from a corporation?
How does an LTD differ from a corporation?
An LTD is organized into membership shares, while a corporation is divided into shares. In addition, SRLs are more commonly used for small and medium-sized businesses, while corporations are typically used for larger or international operations.
How long does it take to register an LTD?
How long does it take to register an LTD?
The incorporation and registration process usually takes between 5 and 7 business days.
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