PANAMA PRIVATE FOUNDATIONS
ADVANTAGES OF PRIVATE FOUNDATIONS
Foundations of Private Interest (FIP) are legal entities for protecting the distribution of assets or incomes in accordance with the wishes of the person (legal or natural person) who established it. This person is known as the Founder.
The benefits involved in registering a Foundation go parallel with those offered for estate planning or asset protection purposes. Furthermore, the Foundation is in all respects an excellent substitute for testamentary and trust instruments, since they provide the same usage of those traditional structures, with a preferred operational flexibility.
- Panama Private Foundations are grounded on offshore principles, same as Liechtenstein.
- Secrecy and anonymity.
- Disclosure of beneficiaries is not necessary.
- Transactions carried out of Panama are tax exempted.
- No restriction on nationalities of members nor currencies used to operate with.
- Same operational principals as an offshore company.
- May carry out business activities in none customary manner.
CONSTITUTION REQUIREMENTS
Foundations are brought into existence by registering at the Public Registry the "Foundation Charter", which will after this registry act, be of public domain. The Foundation Charter is signed and executed by the Founder (who can be a nominee member of our firm). The Foundation Charter can be drafted in any language and translated into Spanish for registration purposes. The Foundation may be established with a perpetual duration or to that effect for a limited period of time.
- Its name can be in any language as long as it mentions the word "Foundation".
- Domicile.
- Minimum required authorized capital is of US$10,000.00.
- Full description of those persons (natural or legal entities) that will comprise the Foundation Council.
- Foundation's Resident Agent in Panama (which must be a lawyer or law firm).
- Goals and objects of the Foundation.
- Duration of the Foundation.
FOUNDATION COUNCIL ("The Body")
The entity which is responsible for the administration of the Foundation is the "Foundation Council" and will therefore be responsible and accountable for the well management of the Foundation.
Among those responsibilities we must mention the investment or management of assets of the Foundation's endowment, the distribution of funds to beneficiaries of the Foundation, and ensuring that the purposes for which the Foundation was established are fulfilled.
The Foundation Council members do not need to be Panamanians, and it may be composed of natural or legal persons.
- Management of assets of the Foundation.
- Execute those obligations stated in the Foundation charter.
- Keep beneficiaries of the foundation well informed of daily activities, plans and statistical as well as economical aspects of its operation.
- Duly exercise those activities which are stated in the objects of the Foundation.
BENEFICIARIES
Beneficiaries are those individuals (or that group of people) who are meant to benefit from the Foundation. Beneficiaries are not to be considered as owners of the property or assets, they generally have little or no say in the day to day operations issues of the Foundation, regardless of the fact that all actions are taken by the Foundation Council for their benefit.
OBLIGATIONS
Those assets, properties or rights owned by the Private Foundations shall constitute a separate estate from those of the founder.
The assets that the Founder grants to the Foundation will be considered no longer his, but belonging to the Foundation for all legal purposes.
Therefore, those assets cannot be seized nor attached by third parties.
