Private Investment Fund in Panama

Introduction

The operation of FPs is governed by Decree-Law No.1 of 8 July of 1999 (the “Securities Act”) together with Regulation No.5 of 23 of July of 2004 (the “Regulations”) issued by the Superintendency of the Securities Market (the “SSM”), which is the governmental body responsible for regulating funds in Panama.

There is no restriction on the type of assets the FP can invest in. However, should the FP hold local assets then it may require additional regulation in Panama.

private investment fund panama

Basic terms

  • FP is generally a Panamanian company;
  • The shares of a FP must only be offered on a private basis rather than to the public;
  • Upon establishment of the FP, there is no requirement to register with, or notify the SSM;
  • FP is not required to comply with the provisions of the Regulations;
  • In summary, this means a FP does not need an auditor, a custodian or investment manager;
  • FP therefore has a very light regulatory touch in Panama and can be established relatively quickly and cost effectively.

Advantages of an FP

Panama is an attractive jurisdiction for the establishment of a private fund. There are numerous advantages to establishing a FP, including but not limited to:

  • Panama is one of world’s fastest growing economies;
  • Panama is an excellent banking and international financial services centre;
  • No requirements of a minimum paid up capital;
  • There is no restriction on the type of investment the FP can make;
  • The directors of the FP do not need to be based in Panama;
  • Information about shareholders and beneficial owners is not filed with the Public Registry Office and not available to the public;
  • FPs are exempt from tax on income received overseas and so can be structured so as to have a zero rate of tax in Panama;
  • Any individual and legal entity may become a shareholder;
  • No foreign exchange control.

FUND+ is able to assist with the establishment of an FP by drafting all of the necessary documents including the constitutional document (e.g. the articles of incorporation), the offering memorandum, the subscription agreement and legal opinion to set up account with a broker.

It includes all documents required for opening a corporate bank account in most international banks (Panama IBC registration, Apostille Legalization, Certificate of Good Standing with Apostille, Certificate of Incumbency with Apostille, Corporate Seal + nominee and virtual office if required).

Additionally we advice you on how to setup your electronic money borderless account to get instant international bank details to receive money from over 30 countries around the world with zero fees. You also get Eurozone, US, Australia, and UK bank details to get paid like a local.

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