Limited Liability Company
What is a Liability Company?
A limited liability company or LLC as is known, is defined as a society where its range is limited by contributions from its partners is like the other corporations a legal instrument that is used to make all kinds of activities they are within legal framework and that are licit, it differs from other types of Corporations since is limited the amount of their contributions, all the previously described in a deed at the time of its formation in Panama. The limited liability companies are regulated by Law 4 of January 9, 2009.
Advantages of a Liability Company.
The limited liability company incorporated in the Republic of Panama offer a wide range of possibilities among which are the constitutions of companies both locally and internationally with a limited compass responsibilities which their future partners will have to count and providing stability, reliability and feasibility at the time of business for its diversity of settings, in addition to limited liability companies incorporated in Panama are exempt from tax in Panama as long as no perform local operations only internationally.
This is one of the main factors which have become a selling point for their limited liability, protecting the assets of its partners eliminated the risk that the partner responds with its own assets, as in the Limited Liability Partnerships responds only to the amount to which the Partner provides at the time of its formation.
- What is the minimum number of partners that limited liability company can have?
At least two partners, Law 4 of January 9, 2009 does not limit the number of partners, but if specifies a minimum.
- What is the importance in a limited liability company the capital that was provided at the time of the constitution?
In the limited liability companies as described before is answered with the capital that the partner provided at the time of the incorporation of the Company and is a vital part of representation of each partner, this capital can be given in any type of currency and can be incorporated into real estate, among others.
- What is the maintenance of an LLC in terms of formation expenses and annual payments?
$ 250.00 at the time of its formation and $ 300.00 of annuality.
- How is the structure of an LLC in Panama?
The structure of limited liability company established in Panama and registered in the Public Registry is as follows:
- It has partners and the address where they live.
- The address of the corporation.
- The duration of the company, which may be permanent or long term.
- The display of objects that can be broad or limited.
- The authorized capital stock, which can be in any currency, shares or contributions that divide and the value of each.
- The designation of the person or persons that will be responsible for the administration and representation of the LLC, that may be partners or not.
- The designation of one or more officers or general representatives, and special powers of these.
- The nomination of a resident agent, that shall be a lawyer.
- Other legal agreements that the parties thereto agreed or consider appropriate, whenever do not object with the provisions of this law, moral or public order.
- I can reduce or increase the capital of my LLC?
The capital stock will consist of member contributions in money, properties or services and will be represented in units or shares and may be increased or reduced through reforms of the social pact. However, the capital reduction will not work if, during reduction the result of the company assets are less than its liabilities.