Panama
Foundations
The Private Interest Foundation
Law of Panama is based on the Panamanian Trust Law (No. 1 of 1994)
as well as the Liechtenstein Family Foundation Law of the Principality
of Liechtenstein in Europe. The Legislative Assembly in Panama
approved Law No. 25 of June 12, 1995, whereby private interest
foundations are regulated. Below we summarize its relevant aspects.
* CONSTITUTION. The foundation
may be constituted by one or more natural or juridical persons,
either by themselves or through third parties. The endowment of
a foundation capital is required, exclusively destined to the
purposes expressly provided in the foundation instrument. The
foundation capital may be increased by the founder or by the Board
of Governors of the Foundation.
Constitution may be obtained
through the following methods;
a) private instrument subscribed
by the founder, whose signature must be authenticated by a Notary
Public;
b) before the Notary Public
of the place of constitution. In case the foundation is to be
formed to have effect after the founderīs death, testamentary
grant formalities are not required. The foundation instrument
must contain:
1) Name of the foundation.
Which must not be identical or similar to any other existing foundation
in Panama. The word "foundation" must be included in
the name.
2) Foundation Capital. No less than US$10,000.00
3) Names and addresses of the foundation board members to which
the founder may belong;
4) Domicile of the foundation;
5) Name and domicile of the foundationīs resident agent
(lawyer or law firm) who must authorize the foundation instrument
before its registration at the Public Registry Office;
6) Purposes of the foundation;
7) Procedure to appoint the foundationīs beneficiaries,
amount which the founder may be included;
8) Reserve of the right to modify the foundation instrument when
deemed convenient;
9) Duration of the foundation;
10) Destiny of the foundation assets and liquidation procedure
upon dissolution, and;
11) Any other lawful clause the founder deems convenient.
* PURPOSE. Private interest
foundations must seek Non-Profitable Purposes. Nevertheless, commercial
activities may be carried out and capital stock rights may be
enforced by the foundation as long as the outcome of such activities
is destined to the foundationīs purposes.
* TAXATION. All foundations
are subject to payment of registration fees and annual franchise
tax equivalent to those charged to Panamanian corporations. All
acts of constitution, modification, extinction, transfers or encumbrance
regarding the foundation assets and foundation assets related
income, are exempt of any kind of taxes, duties, charges or fees,
if such assets meet the following requirements:
1) Assets located abroad,
2) money deposited by natural or juridical persons whose rent
is not of Panamanian source or not taxable in Panama,
3) stocks or any kind of securities, issued by corporations whose
rent is not of Panamanian source or not taxable by any cause,
even though those stocks or securities are deposited in Panama.
* REGISTRATION. Registration
of the foundation instrument before the Public Registry Office
shall invest legal capacity to the foundation, regardless of any
other legal or administrative authorization. Said registration
will also be of public record against third parties.
* FOUNDATION CAPITAL. Once
the foundation is registered, the founder or third parties are
obliged to the endowment of assets (either current or future),
must formalize its transfer. An important characteristic of the
foundation capital is that it constitutes an independent property
from the founderīs personal property. Therefore foundation
capital may not be attached or garnished, except for damages or
obligations incurred as result of the foundation purposes. In
any case, foundation capital will compensate personal obligations
of the founder or the beneficiaries.
* IRREVOCABILITY. Private
Interest Foundations and transfers to the foundation are irrevocable.
* FOUNDATION BOARD. This Board
must have a minimum of three (3) members, in the case of natural
or juridical persons. Its main function is to fulfill the foundation
purposes.
* SUPERVISORY ORGANS. Besides
the foundation board, the foundation instrument may provide for
the appointment of supervisory organs ( custodians, auditors,
or any other similar) appointed by the founder or majority of
founders.
* DISSOLUTION. Specific causes
are established in the Law, but in general they may be perpetual.
* FOREIGN FOUNDATIONS. Foreign
foundations may be registered in Panama and continue its legal
existence as private interest foundations in the Republic of Panama.
Likewise, private interest foundations constituted according to
Panamanian Law and its assets, are entitled to be transferred
to another jurisdiction.
* BANKING SECRECY. All members
of the Foundation Board and Supervisory Organs as well as private
of public officers that are aware of the foundation activities
or operations must provide reserve and confidentiality at all
times, and are subject to criminal and civil responsibility.
* CONTROVERSIES. The foundation
instrument may express that all controversy will be settled by
arbitration. In lack of this provision, general Procedural law
would be applicable.
Our Price: Only $750.00 USD which
includes courier to your door.
We
accept wire transfer, e-gold and Western Union as
payment.
The Government tax of $250 (increase to $300 as of 2005)
is not included and must
be paid at time of Incorporation.
Panama Foundation annual fees:
Second year Government tax $300 ($50 late fee applies): must
be paid before
June 30th or before December 31st if registered
after June 30.
Resident Agent and
Directors $300
Total: $600/year
Order now!
Paying by
wire transfer
please contact us by e-mail at info@offshore-etc.com for wiring instruction.
If you require
more information about Panama Foundations please contact
us.
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