The Republic of Panama recently approved Law No. 52 dated October 27, 2016 which establishes the requirement to maintain accounting records for certain Panamanian legal entities as as well as other provisions as of January 1, 2017.
Aware of the operations our clients have in this territory, we hereby present a brief summary of the main changes introduced by this legislation, which establishes the obligation to keep accounting records for certain legal entities.
The new legislation defines that all requiring companies and private interest foundations that do not carry out operations to be completed or that will not have effects in the Republic of Panama must keep their accounting records and supporting documentation under certain requirements that confirm where they are carried out, deadlines and the form in which they must be available. Likewise, the particular obligations of the Registered Agent in charge of each legal entity are determined, all of the above under a normative sanctioning framework in case of breach of said duties.
Equally, the new legislation introduces various modifications to the current legislation that regulates these matters, which are of great relevance for the proper functioning and operations of legal entities which are validly constituted in accordance with the laws of the Republic from Panama.
In the event that you require more information or need professional guidance on this matter in order to apply such modifications please do not hesitate to contact us.