Panama Private Interest Foundation

Our company specializes in providing incorporation services for Private Foundations in Panama. We offer two comprehensive packages designed to cater to the specific needs of our clients.

What is a Panamanian Private Interest Foundation?

A Panamanian Private Interest Foundation is a distinct legal entity that possesses the ability to exercise rights, assume obligations, and hold various assets such as properties, patents, and other forms of assets. Unlike corporations or associations, a foundation does not have shareholders or members. Instead, it is established by a founder who sets forth the foundation's objectives and regulations. The foundation operates independently and is governed by its own regulations and appointed officers or beneficiaries.

What are the Advantages of a Panama Private Interest Foundation?

A Panama Private Interest Foundation offers several advantages, including:

• Affordable Annual Renewal Fees: The ongoing costs are reasonable and affordable compared to other jurisdictions.
• No Minimum Capital Requirement for establishing a foundation in Panama, this provides flexibility in structuring the foundation's assets.
• The formation process can be conducted remotely, allowing for convenience and accessibility for individuals or legal entities establishing the foundation.
• Any person or legal entity, regardless of their nationality or location, can establish a Panama Private Interest Foundation.
• Unlike some other legal entities, Panama Private Interest Foundations are not obligated to maintain extensive accounting records or undergo auditing processes, reducing administrative burdens.

These advantages collectively make a Panama Private Interest Foundation an attractive option for individuals and entities seeking cost-effective and flexible asset management structures with minimal regulatory requirements.

What is the Legislation for the Panama Private Interest foundation?

The legislation governing the establishment and operation of Panama Private Interest Foundations is the Private Interest Foundation Law of 1995. This law sets out the requirements, rights, and obligations of the foundation, the founder, the beneficiaries, and the council or foundation council responsible for its administration. The Private Interest Foundation Law of 1995 serves as the primary legislation that governs Panama Private Interest Foundations.

What is the purpose of a Private Interest foundation?

The purpose of a Private Interest Foundation can vary depending on the specific goals and needs of the founder. Some common purposes for establishing a Private Interest Foundation include:

Holding Company: A foundation can serve as a holding entity for assets such as entities, patents, trademarks, real estate, and other valuable holdings. It provides a centralized structure for managing and protecting these assets.

Asset Protection: A foundation can be utilized as a means of safeguarding assets from potential claims by creditors, family members, or in situations of political instability. It can help separate and shield assets from personal liabilities and external risks.

Investments: Private Interest Foundations can be established for the purpose of managing and investing funds in various financial instruments such as bonds, foreign exchange (Forex), mutual funds, and other investment vehicles. This allows for efficient wealth management and diversification.

The Foundation Charter and Private Document for each foundation are drafted in accordance with the specific purposes outlined by the client. These documents outline the foundation's objectives, regulations, and the intended use of its assets in alignment with the client's goals.

Do you get a registered agent and office address when establishing a Panama Private Interest Foundation?

Our packages include a registered office address and the appointment of a registered agent in Panama, which are essential requirements for establishing a Panama Private Foundation.

It is important to note that while the registered office address and registered agent must be in Panama, the principal office address of the foundation can be located in any country.

Additionally, we offer Panama mail forwarding services, which are provided through our virtual office address. This service enables you to accept mail from your customers and suppliers.

Who makes up a Panama Private Interest Foundation?

A Panama Private Interest Foundation is made up of a Founder, Foundation Council, Protector and Beneficiaries.

What is a Founder?

The founder of a Panama Private Interest Foundation is the individual or legal entity responsible for establishing the foundation and determining its purpose, regulations, and beneficiaries. The founder can be from any country and may be an individual or a legal entity.

At least one founder is required for the foundation's formation. The founder can also serve as a member of the Foundation Council, a beneficiary, or both, depending on their designated roles.

It is important to note that the names and addresses of the founders are included in the Foundation Charter, which is a document filed with the Public Registry Office and accessible to the public.

To provide privacy protection, our company offers nominee founder services. These services involve appointing a nominee founder who will sign the Foundation Charter on behalf of the client. This option can expedite the registration process as the client does not need to sign and courier this document to the Panama Registered Agent.

What is a Foundation Council?

The foundation council is responsible for managing and administering the foundation. It consists of three individuals or one legal entity and may be a resident of any country. The council oversees the foundation's activities and is responsible for executing the purpose of the Private Interest Foundation, while protecting the interests of the beneficiaries.

For enhanced privacy and confidentiality, we offer the option of a nominee foundation council for clients who require it.

What is a Protector?

The protector is an optional role within a Panama Private Interest Foundation and may be a resident of any country. The protector's primary duty is to oversee the activities of the foundation council, ensuring that they act in accordance with the foundation's objectives and in the best interests of the beneficiaries.

What is a beneficiary?

Beneficiaries are the individuals or entities that are designated to benefit from the assets and activities of the foundation. The beneficiaries may include individuals, family members, charitable organizations, or legal entities. Having a beneficiary is an optional position and not mandatory.

Information about the beneficiaries is listed in the Private Documents and not filed with the registry nor available to the public.

What information regarding individuals of the foundation is available to the public?

The Foundation Charter is the only document filed with the registry and is accessible to the public. It contains important information, including the names and addresses of the founders and the foundation council members.

To enhance privacy and provide an extra layer of protection, we offer nominee services for both founders and the foundation council.

Are there requirements for accounting and auditing?

Panama Private Interest Foundations are not subject to audit requirements.

However, it is mandatory to maintain accounting records for a Panama Private Interest Foundation. These accounting records should be kept and the scanned copies of these records are to be submitted to the registered agent. The foundation is not obligated to undergo auditing procedures.

How long does a Foundation take to establish?

The formation process takes approximately 10 to 13 business days to complete. After the registration is complete, there is an additional time frame of 3 to 5 business days for the preparation of all internal documents.

Once the documents are ready for shipment, we provide scanned copies via email for your convenience. Subsequently, the originals are then couriered to you.