Registration of a Private Investment Fund not Exceeding 20 Investors (PIF 20) in Panama. Service offer

PIF20 is a fund whose charter allows no more than 20 investors and only private subscription. Such a fund is not required to appoint an investment manager in Panama or register with the Panama Superintendence of Securities Markets (SMV).

Characteristics of this type of entity

It is an offshore company with a special charter that also complies with the requirements of the Panama Securities Law;

It can use the word "Fund" in its name, however special permission by SMV is required for usage of the word “FUND” in the name;

It is equivalent to an ordinary offshore company in terms of taxation;

It is obliged keep accounting records and inform the registered agent about the address where they are kept, but is not obliged to submit them to any authorities;

It is not required to adopt its own Compliance policy or comply with special requirements of the regulator;

No license is required to conduct any activity related to cryptocurrencies (this area is not subject to special regulation in Panama).

Registration

The fund is registered remotely within a week of provision of all KYC documents.

The fund is required to appoint at least three directors/officers who then appoint a Fund Manager.

Directors can be any individuals or legal entities, there are no requirements for citizenship or qualifications. Any legal entity can be appointed as Fund Manager.

PIF20 is normally registered with two types of shares:

investor (non-voting) and
management (voting) shares.

The government fee for registration will depend on the size of the capital and is calculated individually.

Subsequent administration of the fund

The services of a registered agent and a registered office are paid for annually.

A PIF20 will be considered as an ordinary Panama offshore company for taxation purposes. Consequently, a PIF20 will not be subject to any withholding tax in Panama.

A PIF20 shall maintain accounting records but there are no reporting requirements. Registered agent must have access to the accounting records for compliance purposes, upon request. You will be asked to provide an address and the contact details of the individual who will keep custody of the accounting records. A PIF20 is not a regulated entity, but the registered agent may be subject to inspections from the SMV in order to validate that the company is in full compliance with PIF20 regulations.

This offer does not constitute a consultation. To address the tax aspects of the proposed structure, we recommend seeking advice of a tax consultant (can be arranged by us on request).

Fees*

Services	Fees (USD)
Total cost of a new fund registration (not including apostilled copies of corporate documents or the government fee) - Government fees depend on share capital. For example, in case of share capital is equal to 5 000 000 USD, the government fee will be 4 250 USD.	8 500
Apostilled set of corporate documents	750
Fund Manager (Seychelles company) incorporation	1 390**
Starting from the second year:
Annual registered agent services	4 200
Annual government fees depending on the share capital. For example, in case of share capital is equal to 5 000 000 USD, the government fee will be 4 250 USD.	~ 4 250
Fund Manager (Seychelles company) annual maintenance	From 1 800**
Compliance fee Payable in the cases of: - incorporation of a company, - renewal of a company, - liquidation of a company, - transfer out of a company, - issue of a power of attorney to a new attorney, - change of director / shareholder / beneficial owner, except the change to a nominee director / shareholder, - signing of documents.	350 (standard rate, includes the check of 1 individual), + 150 or each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL, + 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL, 450 (rate for high-risk companies, includes the check of 1 individual), 100 (signing of documents).

*The fees are valid as at May 2023.

**See separate offer for Seychelles company incorporation and annual maintenance.

Are you interested in the offer?

8 500 USD

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Registration of a Private Investment Fund not Exceeding 20 Investors (PIF 20) in Panama. Service offer

Contents

Characteristics of this type of entity

Registration

Subsequent administration of the fund

Fees*