Panama Investment Corporation
Investment companies, also known as investment funds are collective investment schemes. Raise funds to reinvest public collectively and diversely, therefore the investment risks are lower and the returns of investors are theoretically higher.
Concept – An investment company in Panama is any legal entity (corporation or foundation), trust or contractual agreement through the issuance and sale of participation shares are in the business of extorting money from public investment through a lump sum or periodic payments, in order to invest and negotiate, either directly through managers or investment managers, investment securities, bonds, options, futures, metals, real estate or any other means recognized investment. Investment firms in Panama are entities that meet the public to reinvest funds collectively. The intention is that they can offer you management risks and costs (reduced trading commissions, for example) and a professional capacity investment analysis, management, monitoring and financial control of investment.
Conducting an Initial Public Offering in Panama
Legally it is understood that a public offering of participation shares of an investment company occurs when it or its investment manager, or other entity on behalf of offers value through marketing and promotion activities in the territory of the Republic Panama. These activities are marketing and promoting any form of communication to potential investors in order to promote the collection of subscription or participation shares (investments) in a vehicle of investment companies, and is considered the territory of the Republic of Panama, provided it is directed to persons domiciled in Panama. This is probably not of interest to many of you. It is useful to read this article to see how the law applies and how it can be excluded from registration, which will probably be of interest to you.
An investment company is considered to be administered in or from Panama, when given one of the following requirements:
1. That means an investment company, investment manager in the Republic of Panama.
2. That the primary residence of the investment company in the Republic of Panama.
3. That investment company designates a custodian in the Republic of Panama
4. Directors need to adopt a resolution of the Board of Directors of the investment corporation with its domicile in Panama.
Corporations that require investment for the Degree Commission of Panama
1. Investment Company Simple: Just have a type of participation shares and a portfolio of investments.
2. Investment Company with limits: Having multiple sets of fees for participation in different investment portfolios.
3. Multiple Investment Company: Having multiple sets of fees for participation, each of the series with different terms regarding payment of fees and subscription fees, depreciation and administrative expenses.
Requirements for Registration of a Panama Investment Corporation
1. Name and incorporation of information.
2. Legal and business address of the corporation.
3. Designation of an investment manager who will have to be licensed by the National Securities Commission. When the investment company will be managed by itself, the documentation of the person who is the CEO and the compliance officer must be submitted.
4. The appointment of a custodian of the investment company.
5. Identify the type of fund.
6. Authorized capital stock and minimum capital required to start operation.
7. Amount of participation fees required to be registered public offering and the value of the initial offer.
Documents to be submitted with the application
1. Authenticated copy of the memorandum, which must demonstrate that the company will work exclusively as an investment company and the books will remain in Panama. Must be in Spanish, but a certified translation can be valid.
2. Copy of passport.
3. Audited financial statements or initial equilibrium.
4. Curriculum Vitae of the directors and officers and legal representative.
5. informative perspective of the investment corporation.
6. Contract with the investment manager and custodian contract signed.
7. Draft Code of Conduct for investment firms that take their own administration and representation.
8. Advertising and other publicity material to be used by the investment firm (all of which will be used only once).
9. Project investment contract to be subscribed to all potential investors.
10. Draft Minutes of the Board of Directors that sets all the terms and conditions relating to the operation of the investment company.
Private Investment Corporations
This type of investment companies are not required to register with the SEC and therefore are not subject to the rules that apply to registered investment companies listed above.
The Commission can sanction any representation or statement that the investment company has, saying that it is registered with the Commission.
It is considered a private investment when the companies are managed in the Republic of Panama, and participation fees have not offered in the Republic of Panama and its Articles of Incorporation include one of the following two provisions:
1. A provision which limits the number of owners of their participation quotas to 50 or which states firmly that the bids for the investment is made through private communications and not through public media such as websites, newsletters, print ads or media.
2. A provision stating that their participation quotas will only be offered to qualified investors in minimum initial investment of $ 100,000.
Private Investment Corporations must designate a representative in Panama, which can be an investment manager license, a brokerage, a licensed investment advisor, one licensed by the Bank, an accountant or a lawyer, you should be able to adequately represent the investment company before the Securities and Exchange Commission at any time.
Must provide copy of the bylaws, the offer document, the audited financial statements, the name and address of Directors. Audited annual statements must be submitted.
Investment self-administered
When the investment firm does not choose to use an external investment manager must meet the following:
1. The investment company must have at least 3 members of the Board of Directors, all of which must be renowned business and professional honor. They should be able to prove they are professional company with good reputation. This is generally set with reference letters and professional licenses.
2. At least one third of the members of the Board should have adequate knowledge and experience in fields related to the stock market and financial markets in general. This would be established through professional licenses, work experience, references and education.
3. It has a full administrative and accounting in addition to the technical (Information Technology, Legal) and human resources to manage the investment company. They should be able to clearly demonstrate that all parts are in place to manage competently and profitable investment.
4. A code of conduct.
5. Designate a compliance officer can determine all investments and due diligence requirements are being met.
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