Pay up or shut up for offshore companies

COMPANIES   registered in Panama, but without  operations in the country, will be more closely monitored and  face fines, and even dissolution if they are delinquent with the payment of fees.

A proposed change in the company’s law would also create the obligation for these companies to maintain accounting records in Panama for some of their operations.

The project was approved by the Cabinet Council and will go  to the National Assembly for discussion.

According to the proposal, the Public Registry shall suspend the corporate rights of companies that do not pay registration fees for a period of three years. They will also be subject to a fine for late fees.

If a company is suspended, it cannot engage in financial transactions or other activities.

If a company doesn’t pay the required fees in two more years, it will be dissolved.

During this period, representatives of the society can apply for its revival of they agree to pay the late fees.

The initiative is aimed at raising the transparency of the financial services industry.