Provision of directors and nominal Shareholders
In many cases, for reasons of maintaining privacy in their businesses, clients engage in hiring the services of nominee directors and /or shareholders. In other instances, solely for compliance with economic substance requirements or to make the signing of documents more flexible or more comfortable, especially if the client travels continuously. In any case, CLD has the possibility of offering this service through physical or legal persons.
Drafting of Legal Documents
At CLD we can also provide support and assistance in preparing and reviewing contracts for your company. Typical or most common agreements we see on a daily basis are Joint Venture Contracts, By-Laws, and Shareholder Agreements, however, there are also other agreements that you may need help with such as the Distribution Agreement, Co-existence Agreements, among others.
Remember, the world changed and transparency matters quite a bit, so having documents in writing is essential for the protection of your interests, not only from a business perspective but also protection against the tax authorities.
The vast majority, if not all jurisdictions in international financial centers require companies and other legal structures incorporated under their Laws to keep accounting. It does not matter so much where the accounting takes place, but that it exists. On the other hand, it is a verifiable fact that financial institutions are demanding justification of transactions and in not a few cases, that the company shows accounting entries, invoices, contracts, etc.
This is a reality that is linked to the global trend towards transparency and for this reason, at CLD we offer accounting and auditing services for all types of companies, both in Panama and in any jurisdiction.
Virtual Office Services
Today there is a clear trend towards transparency in the legal structures that are established day after day throughout the world, but mainly in offshore financial centers. Part of this transparency strategy is to end the companies commonly known as "ghost" or "shell" companies. In this sense, a multitude of jurisdictions, mainly linked directly or indirectly to the United Kingdom (the British Virgin Islands, Cayman Islands, Bahamas, Belize, among others), have been modifying their laws so that certain activities carried out by legal entities comply with having an adequate level of economic substance. This implies, depending on the type of activity, meeting more or fewer requirements.
On the other hand, banks and other financial institutions have become more demanding and little by little they are adjusting their portfolios to the new reality and they are completely moving away from shell companies, which is a patent fact in banks in Europe and Asia.
By substance, banks want to determine whether the company has an address from which it operates and perhaps a utility bill, but also accounting, as they require certainty in transactions.
The world has changed, transparency is the norm and with it comes responsible tax and estate planning. Also, a bank account is a coveted asset these days, therefore meeting tax obligations and having declared assets are more valuable than not. Banks are risk-averse, so if you are not a risk, your business will be more interesting for the bank.
At CLD we are prepared to provide the following services for the companies that we register:
- Virtual office services, which involves providing a physical address where you can receive correspondence. In certain jurisdictions, you can obtain a telephone number, with call forwarding or voicemail.
- Recruitment of personnel (if applicable)
- Establishment of an operations license if necessary.