Panama Private Interest Foundation

 

The Panama Private Interest Foundation Law No. 25 passed in June 1995 sanctions the public registration of Panama foundations. In a few ways the Panama foundation is different from the other tax free foundations we offer:

  • The information contained in the Articles of Formation is public; we provide nominee council members for privacy and confidentiality
  • the founder of the Panama foundation is merely the person who registers the foundations, in this case us — your agent, and the founder has no other function, control or business with the foundation
  • The Panama foundation requires a minimum of three foundation council members
  • Panama foundation can own Panama corporations, and can do business in Panama. As long as the revenue generated for the foundation is earned outside the jurisdiction, the foundation income is tax free.

The Panama foundation is most suitable for asset protection and holding for family, business, philanthropic or charitable uses. The foundation should not be used for profit making, but it may conduct unconventional business (through the use of corporate interest — companies, shares of companies — held by the foundation)

Panama Foundations Requirements:

  1. Must have a foundation council, with at least three members- we offer nominee council members as part of the standard package.
  2. Individual or corporate members are permitted. We offer the services of nominee member.
  3. There are no taxes on Panama foundations.
  4. There is no requirement for stamp or capital gain tax on foundations in Panama.
  5. There is no restriction on the accumulation of income on offshore foundations in Panama.
  6. The Panama foundations cannot involve any property or interest or assets in Panama but the foundation can hold interest in offshore companies or other offshore entities.
  7. Panama foundations may own and trade in other shares or open bank accounts.
  8. Must have a registered agent with a local address in Panama.
  9. Must have a resident secretary, which is provided by us, your agent
  10. Foundation can be revoked or amended, so long as this is set out in the foundation charter.
  11. The minimum endowment value is US$10, 000.
  12. The name of the foundation must end in foundation or FDN, or the equivalent in another accepted language.
  13. Panama foundations can in fact own Panama corporations, and can do business in Panama. As long as the revenue generated for the foundation is earned outside the jurisdiction, the foundation income is tax free;

Panama Private Interest Foundation — Required Information

Once the draft of the Declaration of Establishment (DOE) is prepared, the foundation is registered using an extract document that is based on the DOE contents. While the DOE is signed by the founder/s and the founder anyone else may contribute assets to the foundation.

The DOE for the Panama foundations must contain:

  • Name of the foundation
  • Name and address of the founder
  • The purpose of the foundation
  • Name and address of registered agent
  • Name and address of council member/s
  • Initial endowment value
  • Duration of the foundation
  • Specify the beneficiary by name or class
  • Provisions for management and administration

Though the actual document registered merely contains the name, the purpose and the registered agent information, plus details on the foundation council members (Nominees)

You can only apply to form an international foundation through us online.

We are here to set up an international offshore foundation for you.

Panama Foundation Formation Procedures

You need to fill the application form on the page below.

We will check the name availability for your foundation and let you know about the results via e-mail and may require additional information from you and answer your questions if you have any.

When you are ready we will need a copy of an identity document for the Settlor. At the same time we will raise an invoice, which you have to pay by the method you choose (We accept Visa and MasterCard; wire transfer; Western Union or Money Gram. We will proceed with the foundation registration after we receive the necessary information and payment.

The process of foundation registration normally takes three working days. You will receive the Charter of foundation and Certificate of Registration by courier post. The delivery time varies depending upon your location.