TO CREATE A PRIVATE INTEREST FOUNDATION IN PANAMA

The Private Interest Foundation is built up on a Foundation Act that must be notarized and registered at the Public Registry of Panama and must contain, among other info the following:

- Name: The name of the Foundation expressed in any language but with characters of latin alphabet

and it should not be equal or similar to another existing Foundation name in Panama. The name must include the Word Foundation to distinguish it from another juridical or natural person.

- Patrimony: The initial patrimony of the Foundation, expressed in any legal tender currency, which

can´t be less than an equivalent of ten thousand dollars (US$10,000.00)

- The Objectives of the Foundation: Private Interest Foundations as states article 3 Law Nº 25

cannot be lucrative but may execute some lucrative activities provided that the economic result of those activities benefit exclusively the Foundation goals and that they are not done oftenly.

The Foundation Act is usually complemented by another document called Private Regulation which doesn´t need to be registered and that must be kept undisclosed by the Founder due to the confidential information about beneficiaries and ways of distribution of their benefits that are displayed on it.

Law also allows to name a Protector or Auditor to supervise activities done by the Foundation Council (administrative party of no less than three members, may be natural or juridical persons that should cover functions of President, Secretary and Treasurer).

Assets transferred to the Foundation are a separate and different patrimony of the Founder and in any case may be disputed in inheritance affairs.

For more information about the advantages of building up a Private Interest Foundation in Panama and the necessary requirements please go to our section CONTACT US

We´ll help you in the decision of patrimony and tax planning through this legal figure

• Private Interest Foundations in Panama

• Advantages of the Private Interest Foundations

• To create a Private Interest Foundation

• Costs & Taxes

TO CREATE A PRIVATE INTEREST FOUNDATION IN PANAMA