Private Interest Foundations in Panama
LAW 25 of June 12, 1995.
Regarding Law 25 of June 12, 1995, the Panamanian Nation regulates The Private Interest Foundation in Panama. Private interest foundations are a legal structure that provides goods with an excellent protection; becoming an interesting maneuver in order protects your assets, minimize tax payment and extend your investments. Allow an optimal administration, disposition and protection of the patrimony.
Definition: Private Interest Foundations are defined as the allowance or donation of assets for some determined objectives or goals in the document called the Foundational Act: for the benefit of individuals designated as Beneficiaries.
BENEFICES OF THE PRIVATE INTEREST FOUNDATIONS
1. Can hold bank accounts, shares, real estate property in any place of Panama and around the world.
2. Private Interest Foundations arehighly used for estate planning and asset protection purposes in Panama and worldwide.
3. The Panamanian Private Interest Foundations complements the Offshore Services structure, the technical origins thereof are to be found in the well-known Liechtenstein family Foundation, with the inclusion of various persons or entities as beneficiaries and not only members of the family nucleus.
4. The Private Interest Foundation does not have Partners or Shareholders and cannot engage, in a regular and continuous manner, in the exercise of commerce, being able to carry out commercial acts only in an accidental or isolated manner.
5. Private Interest Foundations are not contingent on the life or death of their founder, reason why they have a permanent character, subject to the conditions established in the Foundational Certificate.
6- Fiscal Advantages.
7. The Foundation's net value constitutes a separate patrimony from the assets of its founder and that of its beneficiaries, their sequestration, embargo or any other action or cautionary measure not being possible.
REQUIREMENTS OF PRIVATE INTEREST FOUNDATIONS IN PANAMA
1. A Panamanian Private Interest Foundation requires a minimum nominal capital in the amount of US$10,000.00, which can be paid after the constitution of the foundation;
2. The Foundations Founder does not acquire any right over the assets of the Foundation;
3. The Name of the Legal Representative of the Foundation;
4. The Foundational Certificate constitutes the juridical instrument that governs the foundation, which must include, among other things, sufficient information as to the name and seat of the foundation, its objectives and purposes, the address of the council's members, and the use of its net worth in the event of the dissolution of the foundation;
5. The name and domicile in the Republic of Panama of the resident agent who has to be a Lawyer or a Law Firm confirming the Foundational Certificate;
6. The founder can establish a "regulation" which will be of a private nature and in which everything related to the benefits of the foundation is set out, in such a way that said information not be of public knowledge and only known to the interested parties. In this regulation the founder can issue, within the framework of the Foundational Certificate, the instructions related to the ways of administrating the foundational funds and in a manner compatible with its expressed purposes;
7. The Foundational Certificate as well as the Regulation can be modified, if and when it is established in said documents. The duration of the foundation can be perpetual or not.
Should you have any further questions or doubts, do not hesitate to contact us at email@example.com.
JOHNNY A. GRIFFO. A, LAWYER
PTY LEGAL CONSULTING
Lawyers in Bocas del Toro and Panamá