How to dissolve a Company in Panama

Dissolving a company in Panama is a straightforward process guided by Law 32 of Public Limited Companies. This process ensures that the company ceases its operations in compliance with Panamanian legal requirements. Here is a detailed overview of the steps and requirements for dissolving a company in Panama.

Initiating the Dissolution

The process begins with the Board of Shareholders deciding to dissolve the company. This decision must be formalized through a dissolution agreement, which requires the approval of the majority of the shareholders. Once the agreement is reached, the legal firm Delvalle & Delvalle will prepare a private document outlining the resolution. This document needs to be signed by the shareholders and sent back via email to Delvalle & Delvalle.

Requirements for Dissolution

Several key requirements must be met before the dissolution can proceed:

1. Compliance with Annuities and Taxes: The company must be current with all annuities and taxes owed to the Panamanian Government. This ensures that there are no outstanding financial obligations.
2. Accounting Records: Delvalle & Delvalle, as the resident agents, must have access to the company’s accounting balances for all operational years. This helps verify that all financial activities have been properly documented.
3. Closure of Bank Accounts: If the company had a bank account, the client must notify Delvalle & Delvalle that the account has been properly closed. This prevents any future financial liabilities from arising post-dissolution.

Failure to meet these requirements will prevent the dissolution from being registered. Thus, it is crucial to ensure that all conditions are fully satisfied.

Notarization and Registration

Once all requirements are fulfilled and the necessary payments are made, Delvalle & Delvalle will notarize the shareholders’ resolution. This notarized document must then be registered in the Public Register of Panama, which typically takes 4-5 business days.

After the registration is complete, Delvalle & Delvalle will send a scanned copy of the dissolution documents to the client. If the original documents are required, they will be sent via courier.

Post-Dissolution Considerations

Once the company is officially dissolved, it is no longer considered an active entity. Any legal or other proceedings must adhere to the terms stated in the company’s articles of incorporation. It is important to note that Delvalle & Delvalle assists in the dissolution process only for companies where they act as resident agents.

Ethical and Professional Standards

Delvalle & Delvalle emphasizes their commitment to the highest ethical and moral standards throughout the dissolution process. Their team of lawyers ensures that every step is handled with the utmost professionalism and integrity.

Contact Information Delvalle & Delvalle

For further assistance or any questions regarding the dissolution process, clients are encouraged to contact Delvalle & Delvalle directly. Their expertise and guidance are invaluable in navigating the legal requirements and ensuring a smooth dissolution process.

In summary, dissolving a company in Panama involves a clear set of steps and adherence to specific legal requirements. By following the guidelines established by Law 32 of Public Limited Companies and working with experienced legal professionals like Delvalle & Delvalle, companies can efficiently and effectively terminate their operations in compliance with Panamanian law.