.:Why Do You Need A Private
Interest Foundation?
Y
our Panama Private Interest Foundation represents an alternative or
compliment to your Panamanian corporation. Unlike a common law trust, the Foundation
is an autonomous legal entity with no members or shareholders. 
It is generally used for the protection of assets and no business activities are permitted.
The foundation can hold shares of a corporation engaged in business activities however...
A Foundation's assets are its exclusive property, and constitute an independent estate apart from the Founder&apos's or the Beneficiaries' own assets. Foundational assets can not be seized, sequestered or frozen in order as a result of obligations or claims (lawsuits, divorce, liabilities) of any kind that the Founder may have.
A Foundation can be the owner of real estate and brokerage or bank accounts. Bank accounts are structured so the Foundation is the beneficial owner of the account rather than you personally. Instead, you are granted a Power of Attorney which does not legally equate to ownership or control.
There are no restrictions on the nationality of Council Members. Members do not have to be shareholders, Panamanian or Panamanian entities.
And, your Foundation can be set up in less than a week.
How Is A Panamanian Foundation Structured?
The Foundation Charter and By-laws are the two major elements required to form your Foundation. Panamanian Foundation law does not contain restrictions or limitations (other than those outlined for the Foundation Charter) with respect to the contents of either document. This means either document can be structured flexibly according to the desires of the Founder.
Foundation Charter: The Charter is equivalent to the Articles Incorporation of a company and contains the operational framework of the Foundation. A Charter must include at least…
—The Foundation name.
—The Foundation’s purpose.
—The identities of the Council members.
—The Beneficiary appointment process.
—Its initial capitalization (usually $10,000 or more).
—Its domicile or country of registration.
—Its duration.
—The destination and distribution of its corpus if the Foundation is dissolved.
—The name and domicile of its resident agent.
The Charter can also include the powers delegated to each entity in the Foundation, how they will be chosen and the manner in which they will approve their decisions. Panamanian law requires that the Charter be recorded in the Panamanian Public Registry.
The By-laws: The By-laws constitute a private and confidential document does not require registration with any registry or authority so it is not available for regulatory inspection. The By-Laws contain the names of the Beneficiaries and establish the way and the proportion in which the assets and income of the Foundation will be distributed to them. The By-laws may also contain any other stipulations regarding the operation of the Foundation that has not been included in the Charter.
Foundation Specifics.
Key Entities:The Foundation is set around the Founder, the Foundation Council and the Beneficiaries. There is also a fourth, albeit optional, figure: The Protector or Guardian.
Founder:The Founder is the person in charge of the organization and the creation of the Foundation, and can be you or a Nominee. In case of a Nominee, the Charter will assign all controlling authorities and decision-making capabilities to the Foundation Council, the Protector or both, and none to the Founder.
Foundation Council:The Council can be compared to a Board of Directors of a company and is in charge of overseeing the Foundation objectives. The Council is in charge of the administration of Foundation assets and can enter into any acts, contracts or other legal business convenient or necessary for the purposes of the Foundation.
The Council can be comprised of individuals or legal entities. In the case of individuals, the minimum number of members is three. In the case of a company or legal entity, only one member is required.
Protector or Guardian:The Protector is the individual/entity responsible for the supervision of the Council and may be assigned the ultimate control over the structure and management of the assets of the Foundation.
If combined, the use of Nominee Council members and the Protector, or the use of a Company issuing Bearer Shares in either capacity, will allow you to retain Foundation control, while ensuring a buffer from the entities that actually exercise said control.
Foundation Beneficiaries:Three individuals or companies may be appointed as Foundation Beneficiaries. Beneficiaries are limited to receiving the income and assets of the Foundation and do not possess any further rights other than those established in the Charter or By-laws.
Council or Beneficiaries Meetings:Meetings can be held by proxy, by telephone or any other electronic method, anywhere in the world. A Minute Book must be kept
Annual Fees:Foundations pay a government fee of $250 for the first year and $300 for subsequent years.
Records and Accounts:There are no accounting or transaction records required. Foundations are not required to file tax reports.
Foundation Duration:This is usually in perpetuity.
Resident Agent:This is a Panamanian attorney or law firm.
Domicile:This is determined by the registered address.
Re-domiciliation:Re-domiciliation to Panama of foreign Foundations is allowed, regardless of provisions in this respect in the country of origin. Moving Panamanian Foundations to other jurisdictions that accept such re-domiciliation is also allowed.
Our Panama Foundation Package is only $1295.
With OBR you receive…
—Original Charter and By-Laws (Spanish).
—Official English translation of the Charter and By-Laws.
—Nominees Council Members (optional).
—Pre-signed, undated Nominee Council Members resignation letters.
—Notarized Private Protectorate Document.
—Resident Agent.
—Registered Office.
—General Power of Attorney (notarized & Apostille).
Add a Panama Corporate Bank Account to the above package for only $450.00.
Corporate Bank Account includes:
—Online Internet access to account.
—Investments in time deposits (Certificates of Deposit).
—Reputable, licensed, secure international bank.
—English-speaking customer service.
—Corporate credit cards available (optional) for access to cash via ATM's around the globe.
