We have an established Law Firm back office in Panama for more than a decade. We offer truly low-cost, fast and confidential services.
The Panama Foundation is a legal entity that is entirely separate from its creators, and it is unlike any other entity. The Panama Private Interest foundation was carefully designed and developed to create a more flexible, a more modern and a more affordable model which is to be used internationally for philanthropic reasons. International estate planning, ultimate privacy, anonymity, and protection to the Protectors, Founders, and Beneficiaries of the Foundation. These are just some of the clear and present advantages of a Panama Foundation.
The Panama Foundation is a global solution for an affordable, anonymous, flexible, private, estate planning instrument that can be used to hold various assets such as companies, bank accounts, investment accounts, real estate, Trusts, or any other type of asset: real or tangible or intangible.
Foundations were introduced first in Western Europe over 100 years ago. Since then, these legal entities have been adopted by many offshore jurisdictions. The Panama Private Interest Foundation under Law No. 25 was legislated into the Public Registry on June 12, 1995 and this is the presiding law for governance and regulation of all Panamanian Private Interest Foundations.
A foundation has no owners; a feature that makes it attractive as the assets held by the foundation belongs to no specific person or persons. The assets held by Panama Foundations take on a separate legal identity from the personal assets of the Founder, the Protector, the Council, or the Beneficiaries.
The Panama offshore foundation benefits from the exemption of all taxes and enhanced protection and privacy of owners guaranteed under the prescribed law. A Panama foundation is a tax free entity as long as the revenue or income of the foundation is earned outside of Panama.
Advantages and Benefits of Panama Private Foundations
- Panama Foundations are not subject to any form of taxation.
- Guaranteed Confidentiality and privacy.
- Secrecy by officers is mandatory by law: Panama Foundation law orders total confidentiality from anyone serving a foundation during and after the life of a foundation. Failure to uphold this can lead to imprisonment or heavy fines.
- The law does not require the disclosure of the ultimate founder, beneficiaries or protectors.
Panama foundation can be ordered by third parties (nominee founder) and Nominee member services are allowed and provided by us the agents.
Panama Foundations are not subject to or accountable to foreign laws or judgments.
- The Foundation endowment does not have to be paid up at time of registration..
- The Panama Foundation may exist for life; it is granted with the option of perpetuity.
- Panama foundations may engage in any legal commercial or civil activity anywhere in the world.
- Panama is a strong and stable democratic country
- A Panamanian Foundation may be revoked under certain conditions.
- A Panamanian Foundations may be re domiciled into or out of Panama.
- While Panama foundations may not engage in direct business or trade, they may carry out business in a non- routine manner and derive earnings from investments, sales, deposits etc.
- A foundation is protected under law against the Founders liabilities.
- Matters arising may be settled out of court through arbitration.
- Panama Private Interest Foundations may be instituted for the gain and benefit of individuals (a person or persons, a family) or a specific social purpose.
The document by which the Panama Foundation is established is the Panama Foundation Charter. The foundation charter may be written in any language, but if not written in Spanish, submitted with an authorized translation. (we offer these services)
This foundation charter document must contain the following information:
- The name of the foundation( the name can be expressed in any language and must include the word foundation);
- The initial patrimony (US 10,000);
- The names and addresses of the council members; who may be natural or juridical persons- (the names and addresses of the council members is a matter of public record);
- The domicile of the foundation;
- The purpose of the foundation;
- The percentage allocations- how assets are to be distributed, destination of assets upon liquidation or dissolution;
- The appointed registered agent and address;
- The duration of the foundation;
- Any other lawful clauses that the founder may deem convenient.
Uses of Panama Foundations
- For increased confidentiality and discretion and Information Protection.
- Holding entities- Panama grants corporate existence to a Panama Foundation and as such as foundation may buy, own property in any form, conduct business, trade and commercial activity.
- Asset Protection- To carry out legal Transfer of ownership while reducing tax liabilities
- Anonymous Ownership and Control of corporate bodies: The Protector and Beneficiaries need not be publicly registered. Panama Foundations Protectors can be appointed through a Private Protectorate Document, and the Beneficiaries can be appointed through a Private Letter of Wishes, written and signed by the Private Protector.
- Tax Planning- reduce tax liabilities
- Estate Planning
- For Philanthropic reasons- for the primary benefit of social causes
Characteristics of the Panama Foundation
In order to establish a foundation in Panama you must maintain a registered office in Panama and must appoint a licensed Panama law firm or lawyer as the registered agent. We provide these Panama offshore services. We also provide Apostilles for the international legalization of your company documents.
In general, Panama Private Interest Foundations may not engage in habitual profit-making commercial activities as a corporation can. Nevertheless, they may carry out commercial activities from time to time, as long as the profits of those activities are used for the objectives of the foundation. For instance, Panama Foundations may engage in investment activities or banking, such as investing in bank time deposits (Certificates of Deposit - CD's), stocks, bonds, mutual funds, options, money markets, etc. so long as the proceeds from these investment activities are for the benefit of the beneficiaries of the Foundation.
Panama Foundation’s Constitutional Requirements
- One or more persons, be it individual or bodies corporate may be the founder (creator) of the foundation, nominee founder services allowed.
- Founders, members, beneficiaries or protectors may be natural beings, or corporations of any nationality, domiciled anywhere in the world.
- The founder can be a beneficiary or a member.
- No limit on number of founders, members or beneficiaries
- The foundation must at all times-
- Be managed by a Foundation Council with three or more persons; where the council is a corporate entity there must be at least three directors. We provide three nominee members.
- Have a registered agent in Panama, who is an authorized lawyer or law firm. (OCH provides these services to all our clients).
- Have an existing Panama Foundation Charter
Have a resident secretary
Meetings of the foundation council may be held when and where the foundation pleases and by any means available, telephone, video conference etc.
- Panama foundations books and accounts (if any) may be kept anywhere.
- A register of the foundation council members, the guardian, the secretary, the beneficiaries, the auditor (where applicable) shall be held by secretary or registered agent.
- Nominee officers available for enhanced privacy and confidentiality.
We offer Nominee Services for Panamanian Foundations to provide for your further confidentiality and privacy.
Panama Foundation Taxation & Fees
Panama is a 100% "tax haven". Panama Offshore Foundations offer the following tax advantages:
- Panama Foundations are exempt from all taxes.
- No tax reporting requirements.
Panama Foundation may:
- Have professional contact with local lawyers, accountants, investment advisors etc.
- Hold meetings in Panama.
Since the founder of a Panama foundation has NO influence over the control of the Foundation and only acts as the person who present articles to the registry, our firm will act as the founder. Better security.
Nominee foundation council is available since the information on council members is public. With this service pre-signed, undated letters of resignation (the client can replace the council at any time) from each member is part of the package. The nominee council has no power over the Panama foundation or its assets.
You do not have to be present in Panama to register your Foundation. With your instructions, we will do it all for you.
We offer a variety of new and ready-made Panama companies and Panama foundations packages either with or without bank account openings.
Form a Panama Foundation! Protect Your Wealth!
For purposes of this document, the term "Panama Foundation" has the same meaning as "Panama Offshore Foundation", "Panama Private Interest Foundation", "Panamanian Foundation", "Panama Private Foundation", and "Panama Private Offshore Foundation".