Many people do not understand the “offshore foundation”. The purpose of an offshore foundation is to manage assets.
The Panama Private Interest Foundation (PIF) has its origins in the “Liechtenstein Persons and Company Act”, that contains one of the first references to the private non profit foundations.
A Private Foundation is a unique form of legal entity, which acts like a Trust and operates like a company.
There are many advantages of Private Foundations:
- It offers total secrecy and anonymity;
- no requirement to disclose beneficiaries;
- no requirement to file annual returns or financial statements;
- full exemption from taxation on any business activity or transaction carried outside of Panama;
- simple ongoing administration;
- complete management privacy and confidentiality;
- A Foundation may transact business in whatever currencies it chooses;
- Its founders, members of the foundation council and protectors may be of any nationality and may be residents of any country;
- The accounting books of the Private Foundation may be kept in anywhere in the world;
- Its assets may NOT be used to satisfy the founder’s or the beneficiaries financial obligations;
- The law on inheritance regarding the founder’s or the beneficiaries’ domicile is not opposable to the foundation nor may it affect its validity or prevent the fulfilment of its objectives;
The Panama Private Foundation is a legal entity established through a private or public instrument, by either one or more private person(s) or corporate entity (ies) (called the Founder(s)) and the allocation or endowment of funds or assets by the Founder is essential to its creation. The Foundation then becomes a corporate body by registering a Foundation Charter at the Public Registry, which contains:
- Its name, which must include the word “Foundation” (in any language);
- Its domicile;
- The initial capital/estate (expressed in any currency) which can not be less than the equivalent of US$10,000.00;
- The name(s) and address(es) of the Member(s) of the Foundation Council which administers the estate (they can be individuals or corporate entity(ies);
- The name and domicile of the Foundation’s Resident Agent in Panama (which must be a lawyer or law firm);
- The objectives and goals of the Foundation (these must be possible, reasonable, moral, and legal);
- The manner in which the Beneficiaries (which may include the Founder), are selected;
- Reservation of the right to modify the Foundation Charter;
- The duration of the Foundation;
- The use to be made of the Foundation’s assets and the manner in which its estate is to be liquidated in the event of dissolution.
Members of the Foundation Council may be natural or juridical persons of any nationality, and do not need to be residents of Panama. Unlike other service providers, we provide members of the Foundation Council acting as nominees at no extra charge, if so desired. The Foundation Council has the following obligations and duties:
- To manage the assets of the Foundation in accordance with the Foundation Charter or its regulations;
- To carry out those acts, contracts or business as may be expedient or necessary to fulfil the purpose of the foundation and to include in such contracts, and agreements or obligations, such clauses and conditions as are necessary and expedient, being consistent with the foundation’s purposes and not contrary to law, morality, good manners or public order;
- To inform the beneficiaries of the foundation about its economic situation as provided by the Foundation Charter or its regulations;
- To hand over to the beneficiaries of the foundation the assets or resources settled in their favour in the Foundation Charter or its regulations;
- To carry out those acts or contracts which the foundation, according to the Private Foundations Law and other applicable legal or regulatory provisions, may be permitted to carry out;
Optional Foundation Regulations can also be prepared, and this could contain details regarding the Foundation Council’s attributes, frequency of statements, causes for removal of the Foundation Council, and the manner of distribution of the Beneficiaries’ interests. It is not required to appoint beneficiaries in the Foundation Charter, and in order to protect the Founder, the Beneficiaries are appointed in the Foundation’s Regulations that are kept under strict confidentiality in the Registered Agent’s office.
Members of the Foundation Council and of the supervisory bodies, if any, as well as public servants or private sector employees who have knowledge of the activities, transactions or operations of foundations shall maintain secrecy and confidentiality regarding these at all times. Breach of this obligation shall be punishable by six-(6) months imprisonment and a B/.50,000.00 fine, without prejudice to the corresponding civil liability.
Plus!, you need not worry about providing the US $10,000 proof of Capitalization requirement as we handle this too during the formation procedure!
This is a highly effective, turn key, asset protection and Tax Minimization tool.
Now is truly the time to Register a Foundation in Panama and get established offshore before it’s too late!
The total cost to Register a Foundation in Panama is only US $1,795 including all first years fees.
Contact Us to become a client and Register a Foundation in Panama Today!
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