Closing a company is not just about shutting the doors or stopping operations. In Panama, the process of dissolving and liquidating a corporation requires compliance with a series of legal and tax requirements. Failing to do it correctly can result in penalties, personal liabilities, and even future problems for shareholders or partners.
In this article, we explain the most frequent mistakes when closing a company in Panama and how to avoid them.
Many companies simply stop operating without registering their dissolution and liquidation at the Public Registry.
Mistake: Even if it no longer generates income, the corporation still exists legally and continues to accumulate obligations.
Solution: Prepare the dissolution resolution, have it notarized, and file it with the Public Registry.
A common mistake is assuming that dissolution is enough. However, the General Directorate of Revenue (DGI) keeps the taxpayer active until the closing notice is filed.
Mistake: Accumulating fines for failing to file income tax or VAT (ITBMS) returns.
Solution: Notify the DGI of the closure, cancel the RUC, and file all final tax returns.
Before dissolution, all outstanding obligations with suppliers, banks, employees, and government entities must be paid.
Mistake: Leaving creditors unpaid can lead to lawsuits against shareholders or legal representatives.
Solution: Prepare a final liquidation balance sheet and proceed with the orderly payment of debts.
One of the most delicate points is paying labor benefits (severance, vacation, and the thirteenth-month salary).
Mistake: Closing operations without settling with employees results in labor lawsuits and fines from the Ministry of Labor.
Solution: Properly calculate employee benefits and complete all payments before dissolution.
Closing a company involves simultaneous procedures before the Public Registry, DGI, Social Security Fund, Ministry of Labor, and others.
Mistake: Trying to handle it without professional support can delay the process and multiply errors.
Solution: Seek comprehensive advice in corporate law and accounting.
Closing a company in Panama must be done with order, transparency, and full legal compliance. Avoiding the most common mistakes saves time, money, and protects the reputation of shareholders.
At JVD Consultores, we guide you through the entire process of dissolution and liquidation of companies, ensuring compliance with current legal and tax regulations.
📩 Contact us today and close your company correctly and securely.
