Panama Smart Company – A Paperless Entity 

Thought the transition from paper signature to e-signature was a big move? Let us walk you through what’s it like running a completely paperless entity, something we call the Smart Company (SC). 

In a nutshell, Smart Company is an entity that is fully digital.

From incorporation to shares transfers and board resolutions, you’ll be able to navigate all these steps through just a few clicks on your dashboard. This helps our users save a huge amount of time, costs and a good amount of  headache from all that outdated bureaucracy.   

 

Panama Smart Companies are International Business Companies with built-in compliance 

Smart Companies in the Republic of Panama are legally recognized as International Business Companies (IBC). Governed by Panama Corporate Law, this is one of the most popular company types in one of the most popular offshore jurisdictions in the world. 

So how does a paperless business work exactly? 

Smart Companies are 100% digital. This means every transaction that happens in your company governance (share transfer, board resolution, treasury management, cap table etc.) happens directly on the digital dashboard. Ultimately, this will change the way our legal, financial, human resources and payment processes can be managed. 

Each Smart Company gets a dedicated digital dashboard. We use technology that automatically generates all the necessary legal documents to make your transactions compliant. We understand Panama’s corporate law and have integrated all legally required elements in our solution, so you don’t have to even think about them. This is what we mean by built-in compliance. 

On the digital dashboard, every single action is done through a click of a button and has the following characteristics: 

• Every action happens in real time. Literally.
• Every action is legally compliant and is governed by the code. 
• Every action is recorded on Smart Company digital dashboard. 
• We are completely paperless. 
• Every action is error and temper-proof, trackable and traceable. 
• Smart Company corporate shares are tokenized i.e. your ownership is automatically converted into digital form. You can utilize this for entirely new business models or just operate like a traditional company and not use them. 
• Significantly lower in costs (compared to traditional way) 
• Significantly lower in time spent (compared to traditional way)

 

How is this different from a traditional Panama entity?

Traditional limited companies in general are manual, bureaucratic and full of processes and paperwork. If you’ve ever run a company on your own and had to deal with corporate governance, you already know this. 

Mandatory annual meetings, physical presence required here and there, non-transparent processes and endless amount of paper documentation. Most corporate transactions were simply not designed for the digital age and therefore are often outdated for today’s average user. Panama offshore companies, however, are already quite progressive about paperwork – from accepting e-signatures to electronic records. We wanted to take this even further.

Instead of scattering all your legal documentation around, keeping a record of individual transactions, shareholders and terms, we wanted to gather all of this together in one place. So you, as a user, can just log in to a private view of your Smart Company, have a quick overview on what’s happening inside your governance structure, make changes with immediate legal effect and watch as documents are being created automatically. No middlemen included if you don’t want to. All this within a few minutes and virtually zero costs. 

Can I get an example? 

Absolutely. Let’s take a look at a real-world scenario for what happens in a Panama Smart Company. 

Real-world Scenario: Meet Peter, the night owl

Your name is Peter. 

You like to work in weird hours: late at night, sometimes during the weekends. Your life isn’t tied to 9-5 working office hours and in the age of the internet, this is easy.

Except for when it comes to the manual paperwork and the bureaucracy of your startup’s corporate governance. 

Problem

You and your Board of Directors have been trying to schedule a time to vote for that new C-level you’re trying to bring into the team. Just arranging a suitable time for everyone is taking you guys 2 days with different time zones. 

Then the Minutes of the Resolution, working with the agent during their office hours.. And oh, that one modification you needed to get one before the end of the week but it’s already Friday afternoon. That’s a minimum 3 more days of waiting before you get anything with legal validity. This simple decision has taken you guys already more than a week, and still no end in sight.

Solution

A friend tells you about Panama Smart Companies. You heard it’s ‘digital 24/7 and paperless’ so you decide to give it a try. 

Here’s what happens: 

• You migrate your company into a Panama Smart Company. All it took to set it all up was to fill in one digital form. 10 minutes, check.
• You immediately get a digital dashboard dedicated for your company that is open 365 days, 24 hours a day. 
• You create a new vote for the board in the middle of the night, all your directors get an immediate notification and they respond to it in their own time. 
• Because you set the voting deadline in 48hours, it closes itself on the dot, approves your vote with a 75% majority you had instructed and automatically generates the legal documentation of this action with immediate validation. 
• It’s zero paperwork. Zero hassle with agents or your board members.

And that’s it. You’re done. 

 

Okay this is awesome. How to set up one for myself? 

Super simple. Just follow these 3 steps: 

Step 1. Fill in your information here.
Step 2. Invoice.
Step 3. We transfer you the legal ownership of your new Smart Company.

After this, we give you access to the digital dashboard dedicated exclusively to you and your Directors. That’s where your journey shall begin. And don’t worry – we’ll be here to help and assist you all the way.