Following international standards with respect to transparency in commercial activities, the government of Panama has passed Law No. 52 of 27 October 2016 whereby it requires that Panama companies and other entities keep accounting and financial records and supporting documents of all transactions carried out by the company for the previous five (5) years to allow for its financial position to be determined with reasonable accuracy. The records and the underlying documentation must be accurate, reliable and sufficient to show and explain the transactions executed by the entities
- The accounting and financial information is to be kept by the registered agent and if not, it is mandatory that the clients inform the registered agent of the exact physical address where said accounting records are maintained and the name and contact information of its custodian. In addition, if said location is changed for any reason, the registered agent must be informed of the new address within fifteen (15) days.
- If the information is not kept by the registered agent, it must be provided by the client within fifteen (15) days upon request.
- In addition, the law requires registered agents to maintain copies of the registers of shares and shareholders of the companies under their administration.
Lack of compliance with any of the above requires the registered agent to resign.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.