PANAMA PRIVATE INTEREST FOUNDATION
In an effort to provide additional opportunities to the Offshore
Community Law 25 of 1995 was created. Said Law contains the procedures
and requirements for the creation of Private Interest Foundations.
ADVANTAGES OF PRIVATE INTEREST FOUNDATION
Private Interest Foundations may be used as tax and estate planning
device with the following advantages:
1. They provide a fiduciary structure for the orderly transfer and
disposition of assets to beneficiaries upon the death of the Founder,
keeping control of the assets during lifetime;
2. They may be established to have effects from the date of their
constitution or after the death of the Founder;
3. According to Law 25 of 1995, inheritance laws that apply in the
domicile of the Founder or the Beneficiaries, shall not be effective
against the Foundations assets nor may these laws affect the validity
or performance of the Foundations objectives;
4. Foundations are established to carry the specifics goals set
out in the Foundation Charter and may additionally undertake sporadic
commercial activities, exercise rights pertaining to their holdings,
own property, contract obligations and take part in administrative
or judicial proceedings.
5. A Private Interest Foundation should be established with a patrimony
destined to fulfil its objectives, which shall be no less than US$10,000.00.
Said patrimony may be increased by additional contributions of the
Founder or third parties;
6. The assets of the Foundation become legally independent and do
not form a part of the private estate of the Founder. Such assets
are not sizeable and may not be subject to any precautory action
or measure, unless such action or measure pertains to obligations
incurred or damages arising from the fulfilment of the Foundations
objectives;
Notwithstanding the creditors of the Founder or of a third party
shall have the right to contest the contribution or transfer of
assets to a foundation when such transfer constitutes an act in
fraud of the creditors. The rights and actions of such creditors
shall lapse at the expiration of three (3) years, counted from the
date of the contribution or transfer of the assets to the foundation.
7. According to article 27 of Law 25 of 1995, Private Interest Foundations
are except from payment of any taxes, contributions, duties, liens
or assessments of any kind arising from the acts of constitution,
amendment or extinction of the same, as well as acts of transfer
or encumbrance of the Foundations assets and the income arising
thereof, when related to:
(1). Assets localized abroad;
(2). Money deposited by natural or juridical persons whose income
does not derive from a Panamanian source is not taxable in Panama
for any reason;
(3). Shares or securities of any kind issued by corporations which
income is not derived from a Panama source, or which are not taxable
for any reason, even when such shares or securities are deposited
in the Republic of Panama;
The transfer of unmovable property, titles, certificates of deposits,
assets, funds, securities or shares carried out by reason of the
fulfilment of the objectives of the foundation or the termination
of the same, in favor of relatives within the first degree of consanguinity
or the spouse of the Founder shall also be exempted from all taxes.
The Foundation Charter shall be executed by the Founder by means
of a private document, in which case it should be authenticated
by a Notary Public, or by means of a public document directly before
a Notary Public.
INFORMATION REQUIRED
In order for us to provide services in the constitution and management
of Private Interest Foundations, the following information will
be necessary:
1. Name desired for the Foundation to check on its availability.
The word Foundation must be included in the name, for example: The
Clear Water Foundation, John Doe Foundation for the Children, etc;
2. Initial patrimony if other by the standard of U.S.$10,000.00;
3. Names and addresses of the members of the Foundation Council,
which will be no less than three (3) members (natural persons), unless a juridical
person is appointed, in which case a minimum of one member is required.
We may provide nominees for these positions;
4. Domicile of the Foundation, if other than Panama;
5. Duration, if other than limited;
6. Name of the protector if required.
If required, we can provide standard Regulations with blank spaces
to name beneficiaries for an additional fee of US$150
COSTS
We use Panama to form the offshore foundations, because the Panama
law offers most protection.
The fees to form a Panama Private Interests Foundation: US$1350
This price includes:
- Notarial and registration fees
- Certified translation to English of the Foundational Charter
- Notarized Blank Power of Attorney
- Three (3) nominee foundation council members (If this service
is required, there will no charge for the first year)
Options:
Certificate of Incorporation with Apostille US$200 (required for
any bank account)
Courier delivery: $100
Certificate of Good Standing (after first year of existence) US$200.
Nominee services US$400 p.a.
Mail Forwarding: US$400 p.a. + $100 deposit
Bank account in Panama: US$600. (see below)
Process of incorporation will take between 8 to 15 working days
after receipt of payment.
Annual maintenance fees after first year:
Registered Office/Agent: $500 p.a.
Government Licence: $250 p.a.
Options:
Nominee services US$400 p.a.
Mail Forwarding: US$400 p.a. + $100 deposit |