Another 381,000 companies have been struck off the Public Registry this December, in accordance with Law 52, 2016.
In May 2016, some 290,000 companies were struck off the Public Registry. These companies failed to pay their government fees for ten or more years. In August 2018, the tax department sent a 158-page list to the public registry for companies to be struck off. This has been followed up this year with further 381,000 companies. Corporate rights for these companies has been suspended, and the public registry has put a margin note.
For companies on the 2016 list, the Public Registry expected to have them dissolved within three years. These companies failed to get up to date with more than ten years of payments outstanding.
For the companies on the 2018 and 2019 lists, owners of the companies have two years from the date of publication of the list in the gazette to pay. If payment of outstanding government fees was made, the company avoids dissolution.
All of the above actions have been taken with a view to showing the FATF that Panama takes serious compliance with the international expectations to fight money laundering.
In other news, the Tax Department and the Public Registry signed an accord in November 2019. This accord facilitates the exchange of information with foreign governments regarding which companies were in good standing or not. The complaint of foreign governments is that the Public Registry system is difficult to use. This system is used to verify the information regarding which companies are in good standing and which have been suspended. Part of the agreement covers the lifting of the marginal notes when a company has been put back into good standing (by paying the government fees owed) and notification of the Public Registry by the tax department in a more timely manner.
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If your company has been struck off and you are looking to get it back into good standing, please contact the law firm in Panama that is the registered agent, or contact us to see how we can assist you.