Accounting Records obligations

For Panama Companies and Private Foundations.
Updated requirements as per law 254 of November 11, 2021.

Legal entities that do not carry out operations that are perfected or consumed or have their effects within the Republic of Panama, as well as those that are dedicated exclusively to being an asset holder, inside or outside Panamanian territory are obliged to keep accounting records and maintain their supporting documentation.

Accounting records and supporting documentation may be kept outside Panama, however, after one year of incorporation the legal entities shall be obliged to provide the Resident Agent (our law firm) annually, as of April 30 a copy of the accounting records relating to the fiscal period that ended on December 31 of the immediately preceding year.

The legal entities must report annually, in writing to the resident agent, the name, contact details of the person who maintains the accounting records and supporting documentation in their custody, and the physical address where they are kept.