Private Interest Foundation

A Private Interest Foundation is an independent legal person, instituted and separated from its founders, beneficiaries, or administrators. It is constituted by one or more people that are known as founders.

The foundations of Private Interest can be owners of goods of any kind, nature or description. There is no requirement of initial capital.
The foundations of private Interest can be shareholders of corporations which facilitate the anonymity of the actions, with a greater security than the actions to the carrier, generally the clients who look for anonymity buy the Foundation so it can be the owner of the actions that the corporation emits.

YOU CAN OPEN BANK ACCOUNTS IN NAME OF the FOUNDATION WHICH IS GOING TO BE A SEPARATED PATRIMONY OF THE FOUNDER, BENEFICIARIES AND DIRECTORS, IN PANAMA THERE ARE MORE THAN 90 BANKS, WE WILL ADVISE YOU AND MAKE THE TRANSACTIONS SEPARETELY  FOR THE OPENING OF THIS BANK ACCOUNT, (know the banks)

The Foundations have different uses, one is the explained in the previous paragraph, another one is the minimization of taxes, and the following taxes are not applicable to the foundations:

Tax on the rent
Tax on capital gain
Withholding Tax
Tax of Invention
Tax of incoming interest
Tax of sale
Tax to the beneficiaries
Tax of transfers to the beneficiary
Tax of capital
Tax of property (for the foreigner)
Tax of Transfers of Real Estates
Tax of gift
Tax of inheritance
Tax of seals
Tax of succession
Tax of inventory

The Elements required in a Foundation are the followings: organization, Goods, Private Interest and No eagerness of Profit.
The Foundation has a Founder, a Council, a Protector and Beneficiaries. Next, we are going to explain what paper plays each one of them in the Foundation:

ORGANIZATION

Founder:  is the one who institutes the Foundation. Our law firm, some of our corporations or the corporation of our client is generally the Founder of each Foundation that we establish.

COUNCIL

The Council of the Foundation is the Organism that directs the Foundation and that determines the Protector; it can be designate to a Panamanian corporation so that it can be the Council of the Foundation. The members of the council are registered in the public registry with their names, addresses.

PROTECTOR
Is the person or organization that controls the Foundation and all the goods maintained in it. It is designated by the Council of the Foundation when the Foundation is created, the Protector has the faculty to remove the Council of the Foundation, is not necessary that the Protector is registered in the Public Registry.

Beneficiary or Beneficiaries:
The Beneficiaries of the Foundation are named by the Protector and can be any person.
Facts of a Panamanian Foundation

There are Requirements of Reports nor of no Taxes
There is no Penetration in Corporative Veil
Anonymity

There is no Requirement of Capital
Meetings of Directors or Beneficiaries can be held in any place of the world and they are not a requirement
The Foundations will pay the annual rate of USS300.00 annually.
It must have a Resident Agent and an Address.

• Costs of Constitution of a Foundation of Private Interest
• Contact us for more information

Frequent ask questions on Foundations of Private Interest in Panama