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Private Investment Corporations
1. The Private Investment Corporations (“PIC”) are those corporations administered in or from the Republic of Panama; one of their characteristics is that their shares cannot be offered in Panama, nor to Panamanians or foreigners domiciled in Panama.
2. The Articles of Incorporations of PIC must contain some of the following conditions:
(a) A provision that limits the amount of effective owners of their participation quotas to fifty, or that obliges that the offers be made by means of private communication, and not through public communication means; or
(b) A provision that establishes that their participation of quotas can only be offered to qualified investors in minimum initial investment amount of one thousand balboas (B/.100,000.00).
3. The minimum requisites to initiate operations in Panama are:
(a) To provide the Articles of Incorporation of the Corporation
(b) To submit the outstanding certificate (existence) of the Corporation issued by the Public Registry.
(c) To deliver copies of the identity documents of the directors of the PIC.
(d) To Submit the Audited Financial Statements.
(e) Curriculum Vitae of the Directors.
(f) Prospectus
(g) Physical Address of the
(h) The Appointment of one Representatives before the National Exchange Commission (“Conaval”), who could be our Firm, in order to receive administrative or judicial notifications, but without being part of the operation of PIC.
(i) To receive the Resolution from Conaval, wherein it is indicated that the requisites of the Law have been fully fulfilled. It is worth mentioning that the referred Resolution should not be understood as if the is a registered Investment Corporation, because the latter has other requisites and must comply with major controls and reports before Conaval.
4. We shall have the Resolutions form Conaval in an approximate term of 3 months
5. Once the Resolution is obtained, we proceed to the opening of a commercial account.
6. After obtaining the Resolution, each year it must communicate to Conaval that the requisites are fulfilled.
7. It is important to mention that PICs are obliged to report to their representative before Conaval any change in the information or in the documents described in item 3 (clauses “a” to “h”).
8. Likewise the PIC must deliver to its representative a copy of the audited financial statements within 120 days following the closing of the year.
9. Under this financial scheme the client may obtain investors, in correctly way.
10. Any default of the foregoing may be sanctioned by Conaval.
The present document about is informative, with the sole purpose of serving as general knowledge for this financial instrument, and should not be construed as a Formal Legal Opinion, which for such effects, we recommend to make an appointment with LBA to analyze your business opportunity.
1. The Private Investment Corporations (“PIC”) are those corporations administered in or from the Republic of Panama; one of their characteristics is that their shares cannot be offered in Panama, nor to Panamanians or foreigners domiciled in Panama.
2. The Articles of Incorporations of PIC must contain some of the following conditions:
(a) A provision that limits the amount of effective owners of their participation quotas to fifty, or that obliges that the offers be made by means of private communication, and not through public communication means; or
(b) A provision that establishes that their participation of quotas can only be offered to qualified investors in minimum initial investment amount of one thousand balboas (B/.100,000.00).
3. The minimum requisites to initiate operations in Panama are:
(a) To provide the Articles of Incorporation of the Corporation
(b) To submit the outstanding certificate (existence) of the Corporation issued by the Public Registry.
(c) To deliver copies of the identity documents of the directors of the PIC.
(d) To Submit the Audited Financial Statements.
(e) Curriculum Vitae of the Directors.
(f) Prospectus
(g) Physical Address of the
(h) The Appointment of one Representatives before the National Exchange Commission (“Conaval”), who could be our Firm, in order to receive administrative or judicial notifications, but without being part of the operation of PIC.
(i) To receive the Resolution from Conaval, wherein it is indicated that the requisites of the Law have been fully fulfilled. It is worth mentioning that the referred Resolution should not be understood as if the is a registered Investment Corporation, because the latter has other requisites and must comply with major controls and reports before Conaval.
4. We shall have the Resolutions form Conaval in an approximate term of 3 months
5. Once the Resolution is obtained, we proceed to the opening of a commercial account.
6. After obtaining the Resolution, each year it must communicate to Conaval that the requisites are fulfilled.
7. It is important to mention that PICs are obliged to report to their representative before Conaval any change in the information or in the documents described in item 3 (clauses “a” to “h”).
8. Likewise the PIC must deliver to its representative a copy of the audited financial statements within 120 days following the closing of the year.
9. Under this financial scheme the client may obtain investors, in correctly way.
10. Any default of the foregoing may be sanctioned by Conaval.
The present document about is informative, with the sole purpose of serving as general knowledge for this financial instrument, and should not be construed as a Formal Legal Opinion, which for such effects, we recommend to make an appointment with LBA to analyze your business opportunity.
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