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Panama Private Interest Foundation
PRIVATE INTEREST FOUNDATION:
Private Interest Foundation aims to:
1. Preserve the founder's assets
2. Increase the founder's assets
3. Distribute assets according to the founder given will in case of the founder death or incapacity.
Likewise, a trust, separate the owner from his property. Once the founder transfers properties to the foundation, the foundation becomes the owner. Nevertheless, the initial owner can be the administrator of the foundation or appoint a third party to carry on that duty.
The foundation usually has (a) Founder who establishes the foundation and transfers properties to it for administration; (b) Foundation Council who are persons who carry out the day-to-day administration of the Private Foundation. The founder himself or herself can be part of this council. (c) the Beneficiaries who are the persons to whom the property of the foundation will be transferred according to the founder's instructions on the occurrence of specific stipulated events. (d) The Protector is a supervisor appointed by the founder. It is his responsibility to ensure that the council strictly carries out the founder's instructions.
Other Information
Foundation Council | Management of Panama Private Foundation is vested in the Foundation Council.Panama Private Foundations require to appoint as the Foundation Council a minimum of three natural persons from any legal jurisdiction or a minimum of one legal entity from any legal jurisdiction.Panama Private Foundation must file information on its Foundation Council with the Public Register of Panama. |
Authorized capital | Minimal authorized capital 10,000 USD |
Foundation Name | The name must include the word "Foundation." Words such as "Bank," "Insurance" will not be permitted unless the company has obtained an appropriate national operating license. |
Beneficiary information | Information about ultimate beneficial ownership must be disclosed to the Register Agent and is held by the agent on a confidential basis. |
Foundation Franchise Tax | Panama Private Foundations are subject to a yearly government fee of USD 400 |
Timeframe for registration | Seven business days. Documents can be delivered in seven weeks. |
Management & foundation council services for an existing Private Foundation | Foundation council services could be provided before verification of founder and beneficial ownership. Also, an agreement of discharge of liabilities to the previous corporate service provider in Panama and the founder is required. |
Price | Each foundation is individually prepared following the requirements and instructions of each client; therefore, the price depends on the completion of its foundation documents, structure, and other details. The minimum amount of USD 1500, including incorporation costs and Registered Resident Agent. 1-year fee |
Cost of annual support services | Not less than USD 945.00 per year, including full Registered Resident Agent costs (USD 250.00) and annual Government Fee (USD 400.00) and its payment (USD 45.00), plus compliance fee (USD 250.00) An additional fee is charged in case of requiring assistance with the foundation council members |
Private Interest Foundation Related Law
Law No. 25 of 1995 on Private Interest Foundations: Panamanian Foundation Law
FINAL REMARKS: If you require specific information about the process, or specific quotations, our legal fee per consultation is USD 200 per hour or fraction, which you can pay through PayPal or bank transfer. We will not answer any mail or specific inquiry if we have not received the payment for consultation. This payment may be deducted from the legal fees in case of hiring our services.
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