The Panama Foundation is a very flexible figure for general estate planning, assets protection, and family inheritance purposes. It also allows the investor to perform transactions and to distribute the proceeds generated from the same, with a grade of privacy superior to any other type of investment instrument. The Foundation may be used to hold any type of assets, present or future, and may derive its income from any type of legal business. The Foundation will constitute a separate estate from those of The Founder and Beneficiaries. According to our laws, under no circumstances, the assets of the Foundation could be used to satisfy the personal obligation of The Founder or of The Beneficiaries.
The Founder can be a natural or legal person; furthermore, the standard practice is to use a nominee founder in order to grant more privacy, in this way the client individual name would not need to appear at the Foundation Charter, which is a public document. One important advantage gained by using a Panama Foundation is its tax treatment. For tax purposes, Foundations receive the same treatment as an offshore "IBC" company, and as such, it is governed and benefits from the Panamanian tax principle of territoriality. Under this system, only incomes or profits generated within the geographic territory of Panama are subject to Panama tax.
The total cost of the Panama Private Interest Foundations is US$2,000 and includes documents translations into English language and Apostille legalisation of all the official documents.
The above cost includes expenses such as:
The Foundation must have a Foundation council, which is similar to the board of directors of a company. Regarding this point, you have two alternatives:
1. To appoint your own Foundation council (must be formed by - 3 - natural persons)
2. To appoint a corporate entity as the Foundation Council.
Maintenance and Annual renewals.
In each anniversary of the date of incorporation, you must pay US$400 for the Annual Franchise Tax plus US$800 for Resident Agent fees.
In order for us to proceed with a Private Foundation, please provide the following:
Procedures Time Frame.
Once we receive the above requirements and confirmation that the funds were transferred to our account, we would send you the soft copy of Foundation documents in approximately six business days.
We will also be making arrangement for you to open a bank account. As a Foundation, not all the banks that are listed on our website can provide this kind of banking facility, we will give you our opinion about these banks as well. We will assure you that the documents are in a complete and orderly manner. We will give you our opinion on which bank is suitable for you depending on your situation and needs. In most of the cases, we will arrange for you to open a bank account in a jurisdiction without the need for you to meet the bank face-to-face. The bank will usually provide you with:
For more information, please go to our steps to set-up an entity page to find out more.