Setup Panama Private Interest Foundations

What is it ?

A Panama Private Interest Foundation is a combination of a will, a trust and a corporation. It is the ideal structure for asset protection and testamentary planification.

Parties involved

• The founder or subscriber, to be supplied by the agent. The Founder has no control over the Foundation and its affairs, and is only recognized as the individual who file its Constitutional Charter.


• The Foundation Council Members (equivalent to companies Board of Directors) Minimum one corporate member or three (3) individual, combination of corporate and individual members is also feasible. Matter of public records, It is possible to obtain nominees through the agent.


• The client, requesting the set up of the structure.


• The beneficiaries appointed in the by laws and therefore not a matter of public record.


• The protector (not mandatory), who may be a corporate body or an individual. Oversees that the foundation purposes are achieved. Its functions may be freely established in the Constitutional Charter and By Laws and in a private document.

Panama Foundation Benefits:

• Asset protection, which can not be subject of any precautory measures. All foundation's assets can not be reached by creditors.


• No paid up capital requirement. There are no requirements to file tax returns. Books and accounting records may be held in Panama or abroad. The management and operation of the Foundation is not subject to the supervision of any governmental authority.


• Estate planning and testamentary use. Foundations can be used to provide for the financial well being of family members according to your explicit instructions, saving you from time consuming and expensive judiciary procedures. It is an efficient substitute to wills and trusts . The Panamanian Foundation is a perfect vehicle for inter vivos or mortis causa estate planning, as it can be set up to remain in perpetuity in so far as the purposes of the Foundation continue to be met. This may prevent hereditary disputes, as well as avoiding forced heir ship rules.
  


• In general, Private Interest Foundations may not engage in commercial activities like a corporation but they may carry out commercial activities sporadically and to achieve the purposes of its formation and obtain profits for its beneficiaries.


• The Foundation can carry on scientific, philanthropic, religious, humanitarian or educational purposes.


• The Foundation can hold a bank account, be an investment vehicle for real estate, stocks and bonds. It can hold boats, planes, artwork, collectibles or other assets with highly specific instructions as to how such assets should be dealt with under varying circumstances, all custom designed to meet your specific needs. Royalties, copyrights, trademarks can be assigned to the Foundation.


• The Foundation Charter may provide that any controversy arising in connection with the Foundation be resolved by arbitration, thus avoiding the public records of litigation. These provisions may also include the location and the procedural rules to be followed in arbitration.


• Tax Advantages: The assignment, transfer or donation of assets to the Foundation is not subject to any tax under Panamanian law, neither is the organization, modification or dissolution of the Foundation. Income generated by assets of the Foundation is not subject to taxes, contributions, rates or liens of any kind.


• Revocability. Although the Foundation is generally irrevocable, however,it is possible to revoke its establishment under certain circumstances.The foundation may be created to become effective on a certain date, on the occurrence of certain event or condition, or upon the death of the founder.

It only takes 5-7* business days to form a Panama Foundation.

• Foundation’s Constitutional Charter
• Certificate of Incorporation
• Regulations
• Protector Appointment
• Power of Attorney
• Undated and signed resignation letters from the Council Members.
• First year governmental fees
• Nominee corporate or individual council members

Renewal fees – USD 3100 (includes resident agent fees, nominee corporate or individual council members, governmental fees)

Any questions ? Please contact us on info@sfm.com or by phone on +971 4 246 9700.

* Subject to the constraints of the due diligence procedure.