Panama Foundation
About Panama Foundation
Panama is a small country located in Central America; bordered by the Caribbean on the North, the Pacific Ocean on the South, and connected by the infamous Panama Canal. Panama is the fastest growing economy in the Americas and has become a well-known international hub for business with the highly developed banking sector and sophisticated infrastructure for commercial and financial activities.
Inspired by the Liechtenstein family foundation structure, Panama introduced their own private interest foundation (PIF). The PIF offers a modern and flexible structure governed by Law 25 of June 12th, 1995. It provides a legal vehicle to hold a variety of investments, protect the foundation´s assets from any legal disputes, protect family wealth and pass them along to succeeding generations.
Prime Minister:
Laurentino Cortizo
Government:
Constitutional representative democracy
Economy:
Services sector inclusive of the Panama Canal banking, commerce, and the Colón Free Trade Zone
Currency:
US Dollar, Panamanian Balboa
Capital City:
Panama City
Population:
Over 4 million
Language:
Spanish
Tax system:
Territorial Tax System
Members of:
United Nations, Inter-American Development Bank, IMF
Benefits
A private foundation is a unique legal structure that encompasses the benefits of a corporation as well as the asset protection features of a trust. It is a separate legal entity where the founder transfers the legal ownership of the assets to the foundation. The council manages the assets in accordance with the by-laws set by the founder while the protector controls and oversees the foundation. A unique feature of the foundation is that it does not have shareholders and instead lists beneficiaries who will then benefit from the assets held in the foundation.
Characteristics
Process
1. While many offshore jurisdictions offer similar advantages and benefits, there is no one-jurisdiction-fits-all. Our advisors will discuss your needs and goals and ask you the right questions to help determine which jurisdictions are right for you.
2. Defining the objectives of the foundation will help establish which legal structure is right for you. Our advisors will assist in setting up the foundation charter in accordance with the founder´s wishes.
3. Choosing a local resident agent is key in establishing a well-defined foundation that adheres to local laws and offers the foundation the most protection and privacy. As this is an ongoing relationship, it is advisable to set up an offshore foundation with a reputable and trusted firm.
4. Each jurisdiction will have its own setup process and set of due diligence processes. Panama requires clients to fulfill KYC (Know Your Client) by proving their identity with proof of address, as well as completing a simple form to provide the necessary information to draft the foundation charter and regulations.
5. Once the required documentation is received, the provider can then file the foundation charter, creating a legal entity in the public registry. The founder is required to sign the incorporation documents in front of a Panamanian notary or sign and apostille a Power of Attorney for our firm to sign it on behalf of the elected founder. The regulations of the foundation or letter of wishes are then privately issued.
6. The founder´s assets are transferred to the foundation thereby transferring legal ownership of the assets to the foundation.
7. The protector controls the foundation along with the assets and oversees the affairs of the foundation. The council manages to fulfill any duties in accordance with the by-laws of the foundation. Duties.
8. Expenses including annual maintenance fees as well as any tax expenses incurred by the assets must be paid and maintained. Financial statements are required to be maintained, though filing of the statements is not required.
Choose your jurisdiction
While many offshore jurisdictions offer similar advantages and benefits, there is no one-jurisdiction-fits-all. Our advisors will discuss your needs and goals and ask you the right questions to help determine which jurisdictions are right for you.
Choose the legal structure
Defining the objectives of the foundation will help establish which legal structure is right for you. Our advisors will assist in setting up the foundation charter in accordance with the founder´s wishes.
Choose your professional provider
Choosing a local resident agent is key in establishing a well-defined foundation that adheres to local laws and offers the foundation the most protection and privacy. As this is an ongoing relationship, it is advisable to set up an offshore foundation with a reputable and trusted firm.
Fulfill due diligence
Each jurisdiction will have its own setup process and set of due diligence processes. Panama requires clients to fulfill KYC (Know Your Client) by proving their identity with proof of address, as well as completing a simple form to provide the necessary information to draft the foundation charter and regulations.
Draft and execution
Once the required documentation is received, the provider can then file the foundation charter, creating a legal entity in the public registry. The founder is required to sign the incorporation documents in front of a Panamanian notary or sign and apostille a Power of Attorney for our firm to sign it on behalf of the elected founder. The regulations of the foundation or letter of wishes are then privately issued.
Transfer of assets
The founder´s assets are transferred to the foundation thereby transferring legal ownership of the assets to the foundation.
Duties & Responsibilities
The protector controls the foundation along with the assets and oversees the affairs of the foundation. The council manages to fulfill any duties in accordance with the by-laws of the foundation. Duties.
Maintenance of Foundation
Expenses including annual maintenance fees as well as any tax expenses incurred by the assets must be paid and maintained. Financial statements are required to be maintained, though filing of the statements is not required.
Other Services
Latest News
Dual citizenship is the best gift you can give your children
Up until recently, the primary benefits of 2nd passports was that they offered global visa-free Read More
Calling all Canadians: Residency and Citizenship-by-Investment Programs offer an Exit Strategy
It started with the Freedom Convoy – with the government’s response and conflict in the Read More
You CAN Legally Purchase a Second Passport
Yes, you can legally purchase a 2nd citizenship with a passport to go with it! Read More
Dual citizenship is the best gift you can give your children
Up until recently, the primary benefits of 2nd passports was that they offered global visa-free Read More
Calling all Canadians: Residency and Citizenship-by-Investment Programs offer an Exit Strategy
It started with the Freedom Convoy – with the government’s response and conflict in the Read More
You CAN Legally Purchase a Second Passport
Yes, you can legally purchase a 2nd citizenship with a passport to go with it! Read More