Summary of facts and features
The Panama Private Foundation has the following legal advantages which make it attractive for offshore structures:
It is the creation of assets comprised of donation / endowments.
The foundation is established as a corporate entity with a distinguishing registration number and its assets constitute an independent / autonomous estate.
The foundation protects the founder’s hereditary wishes and provides several layers of confidentiality, privacy and anonymity.
The foundation assets cannot be used to satisfy debts of the founder’s beneficiaries, creditors or third parties and fraudulent conveyance claims must be made within three years. Can also be structured to include arbitration provisions.
The foundation may not have primary profit –making goals but can lawfully engage in any commercial transaction (s) to benefit its purposes / objectives; no commercial business license is required.
It may be revocable or irrevocable, and perpetual or for limited prescribed period.
It is not subject to any taxation, assessment or levy in panama. (Except for the
Annual fees to maintain its good standing) provided that income from contribution originates from outside fiscal territory of panama; there is no tax reporting requirements.
Anonymity: Can be structured to provide anonymity to its founder’s
Beneficiaries, Protector’s, and others.
Law does not require the name(s) of the actual Founder(s) Beneficiaries or protector to be revealed.
Our firm can provide relevant nominee/attorney – in –fact facilities for your specific structuring requirements for both the foundation Charter and all other related documentations.
Speedy Formation procedures, easy administrative and ongoing requirements, reasonable formation and maintenance fees.
Minimum Capitalization requirements and no restriction on maximum assets allowed.
A minimum equivalent to USD 10’000.00 of assets must be donated / endowed to the foundation but this need not to take place at time of formation. There is no further public record of donated assets other than this initial minimum amount so the foundation’s total assets remain confidential.
No requirement to file annual income tax returns or publically file financial statements, books and accounting records (if any) may be held in Panama or elsewhere.
Law does not require annual meetings of the foundation Council, Founder(s)
Protector (s) ,or any Supervisory Bodies.
Founder(s) and foundation Council Member(s) may hold their meetings any where in the world and may be represented by proxy.
There are no limitation regarding the maximum number of founder(s), beneficiaries, or protector(s), the law requires a minimum of three if natural person /individuals, or one if a corporate entity, our firm can provide nominees for either cases.
Founder(s) need not to be foundation Council Member(s).
Founder(s), Protector(s), Foundation Council Member(s) or Supervisory Bodies may be Beneficiaries’
No limitation regarding perpetuities, accrual of capital or other restrictions.
The US, Dollars circulates freely as legal tender in Panama, and rigorous bank secrecy laws are in effect. Panama is also a strong and stable democracy with impeccable reputation and long history as a prime offshore centre for international business.
The Panama Foundation Can be Used for the following Purposes:
There are many reasons to use the Panama Foundation, the most common are listed below, the Foundation may be established to achieve any one or more of the following objectives:
To protect minors, disabled persons or those incapable of managing their own assets and/or those at risk of losing their assets.
To protect the continuity and control of family businesses for future generations by preventing property fragmentation by outsiders.
current and/or future family members. For education, maintenance, housing and To assure and manage payments of grants, income or distribution of assets to other expenses, which can mitigate or negate fiscal gift tax regulation surrounding donations.
Charitable and Social Purposes.
Business and Investments.
Foundation Regulations (similar by law)
The Foundation Regulations are not mandated but are recommended for planning purposes for the management, administration of the foundation’s asset’s, They can be private and confidential and do not have to be publicly recorded. They are designed to ( privately /confidentially ) stipulated the following:
The actual assets of the Foundation.
Specific powers / functions of the Foundation Council and / or causes for their removal.
The method of the Foundation’s administration / management.
Identifying the Beneficiaries of the Foundation or methods of determining them
And by nature of the benefits / distributions corresponding to each of them.
The naming / appointment of regulatory / supervisory bodies i.e. Protector(s)
Auditor(s) etc, and their specific powers.
The rules for presenting the Foundation’s accounts.
The method of determining how beneficiaries may be added removed or substituted.
The method of remunerations to be paid.
Further details ( aside from those in the charter ) of how the Foundation assets may be liquidated.