Panama Private Investment Fund
(20-FP)

Our company specializes in facilitating the incorporation process for international private investment funds known as "20-FP." In Panama, all the services related to this endeavor are delivered by our licensed lawyer who is registered in Panama.

What is a Panama Private Investment Fund?

A Panama Private Investment Fund "20-FP" is a Panama Company, in which only 20 private investors are allowed.

What are the advantages of a Panama Private Investment Fund?

There are several advantages associated with a Panama Private Investment Fund ("20-FP"):

• Flexibility in Asset Investment: The 20-FP allows for unrestricted investment in various types of assets, providing flexibility to the fund's investment strategy.
• Unlike many other types of investment funds, the 20-FP does not require the appointment of an auditor, custodian, or investment manager. This can result in cost savings and streamlined operations.
• The 20-FP is not required to register with the Superintendency of the Securities Market since it does not comply with the regulations applicable to a 50-FP. This exemption simplifies the regulatory process.
• The directors or investors of the 20-FP are not obligated to have a residency in Panama. This provides flexibility and allows for residents of any country to participate in the 20-FP.
• Setting up a 20-FP can be done quickly and at an affordable cost, making it an attractive option for investment fund formation.

These advantages collectively make a Panama Private Investment Fund ("20-FP") a favorable choice for investors seeking flexibility, reduced regulatory requirements, and cost-effective fund establishment.

What is the legislation for a Panama Private Investment Fund?

The legislation governing the establishment of a Panama Private Investment Fund is based on the following laws and regulations:

Decree-Law Number 1 of July 8, 1999: This law, commonly known as the "Securities Act," serves as the foundational legislation for securities and investment-related matters in Panama.

Regulation No. 5 of July 23, 2004: This regulation, issued by the Superintendency of the Securities Market (SSM), provides specific guidelines and provisions for the operation and regulation of private investment funds in Panama.

The Superintendency of the Securities Market (SSM) is the government authority responsible for overseeing and regulating the activities of investment funds in Panama, including the establishment and operation of private investment funds.

Together, these laws and regulations provide the legal framework for the formation, operation, and regulatory compliance of Panama Private Investment Funds.

What should be included in the corporate name of a Panama Private Investment Fund?

A 20-FP Panama Private Investment Fund has the flexibility to adopt a corporate name in any language. However, it is required to include the word "Fund" before the legal ending. The legal endings available for the corporate name of a 20-FP are "Incorporated," "Corporation," "Sociedad Anónima," or their respective abbreviations: "Inc.," "Corp.," "S.A."

Do you get a registered agent and office address when incorporating a Panama Private Investment Fund?

In order to successfully incorporate a 20-FP, it is mandatory to have a registered office address and a registered agent in Panama.

Additionally, we provide Panama mail forwarding services, which are commonly referred to as our virtual office address. This address is able to accept correspondence from your customers and suppliers.

Can one person/entity be appointed as director, shareholder/investors and officers?

When incorporating a 20-FP company, a minimum of three individuals must be appointed as directors, and corporate directors are not permitted. However, for shareholders/investors and officers, it is possible for one person or entity to be appointed as a shareholder/investor, and there can only be a maximum of two individual investors.

The Board of Directors has the authority to appoint officers such as the President, Secretary, and Treasurer. It is worth noting that officers must be individuals, and one person may hold multiple officer positions. Furthermore, officers do not need to be directors of the company.

Lastly, individuals or legal entities included in the company can be residents of any country. There are no specific residency requirements imposed for the stakeholders of a 20-FP company.

What is the authorized Capital of a Private Investment Fund?

The registered capital of a private fund amounts to US$10,000.00, which is divided into two categories of registered shares:

Common Registered Shares: The fund consists of 10,000,000 common registered shares, each having a par value of US$0.0005 (five one-hundredths of a cent).

Preferred Registered Shares: Additionally, there are 10,000,000 preferred registered shares, also with a par value of US$0.0005 (five one-hundredths of a cent) each.

It is important to note that the capital can be adjusted by issuing additional shares and by making changes to the par value, class, and rights associated with these shares. However, the issuance of bearer shares is prohibited.

Is information regarding directors, officers and shareholders private?

Shareholder and beneficial owner details within a 20-FP company are kept strictly confidential and are not accessible to the general public. However, the Articles of Association, which are filed with the registry, do contain information about the directors and officers, including their names and addresses, which is publicly available.

If you desire an additional level of privacy, we provide Nominee services. These services encompass both director nominees and shareholder nominees, allowing you to enhance the privacy of your company.

Are there requirements for accounting and auditing?

A Panama Private Investment Fund does not have audit requirements.

However, it is necessary to maintain proper accounting records for the fund. These accounting records should be kept and maintained by the company, and the scanned copies of these records are typically submitted to the registered agent. While auditing is not mandatory, it is still important to ensure accurate and transparent financial reporting within the fund.

How long does a Panama Private Investment Fund take to incorporate?

The process of incorporating a 20-FP company typically takes around 10 to 13 business days. Following the completion of the incorporation process, the preparation of corporate documents requires an additional 3 to 5 business days.

Once the documents are ready for shipment, we provide scanned copies via email for your records. And the original documents are sent to you via courier.