Resident Agent’s Functions and Requirements in Panama
Panamanian law requires all corporations to have a resident agent domiciled in the Republic of Panama. The resident agent is the lawyer or law firm that registries the article of incorporation when the corporation is created. Its main function is to liaise between the Corporation and the Panamanian Government, as well as to remind them of the annual obligations that each corporation has.
On the other hand, he or she will also be accountable to the State for the actions performed by offshore corporations operating outside Panama or in which the directors and shareholders are abroad. Finally, the resident agent will be authorized to pay the Annual Franchise Tax, which is the annual tax on companies.
As for the limitations of its functions, the resident agent shall not assume obligations nor tax assets on behalf of the corporation, unless being expressly authorized to do so. Finally, resident agents will not be able to participate in the decision-making within the corporation as the only ones empowered to do so are the shareholders, attorneys-in-fact or directors. According to the Panamanian legal framework, to be resident agent must meet the following requirements:
- be a lawyer or a law firm
- be Panamanian and reside in Panama. Resident Agent's name and address shall appear in the article of incorporation
- keep enough information about the client in order to identify it to the competent authorities, only when so is required
- have the powers to attend to judicial and administrative notifications on behalf of the corporation
Our firm Delvalle & Delvalle offers a comprehensive service to create your offshore company in Panama without major concerns. We are a law firm specialized in providing offshore services taking advantage of Panama's excellent location to perform banking, finance and economic activities.
To examine in further detail your case schedule an appointment with our attorneys.