Funds and Trusts
Panamanian Private Foundations
Private foundations are a combination of the company and the trust.
Foundation - an independent legal entity, which may have its own assets around the world, as it looks like the company and can act as a trust, being in fact a combination of both. This requires two documents: a charter, which is similar to the company's charter and is registered in the public registry, and internal rules, which is a private document similar to the Trust.
Establishment of the Fund requires three physical persons or one legal as members of the Board of the Fund. Their role is similar to a board of directors or trustee in the trust. The Fund may also have a defender, as well as in the trust.
To create a private foundation in Panama a Charter (equivalent to M & A) with the name (must include the word "Foundation") and the Board of the Fund (as the board of directors), as part of which should be 3 natural person or a legal one to be prepared. Initial contribution to the fund shall not be less than $ 10,000. The Council has rights to manage the fund.
Foreign funds can also be transferred (re-domiciled) to Panama, using simple and not costly procedures.
Merging Fund and the international company is a very efficient structure for planning your future. It provides confidential offshore property rights to protect the ownership of assets, both now and in the future.
A typical use of the Funds
- Asset Protection
- Minimizing taxes on large estates
- To save and hold together family assets
- Planning assets
- Separation of assets from founder
The main advantages
- A private foundation is a unique form of legal entity that acts as a Trust and operates as a company.
- The following are some of the advantages of private foundations:
- Private Foundation is a legal entity that exists only in Panama, Liechtenstein and Austria, where only Liechtenstein and Panama are "offshore jurisdictions"
- Information about the Beneficiaries is not public. There is no need to submit annual reports or financial statements; complete exemption from tax on any activity outside of Panama, a simple ongoing administration.
- The Fund may conduct business in any currency of your choice, and its founders, members of the foundation council and protectors may be persons of any nationality and may be residents of any country accounting of private funds can be stored both in Panama and abroad.
- Under no circumstances could the Fund's assets be used to meet the obligations of the founder of the fund or its beneficiaries.
- The law of inheritance in respect to the founder or place of residence of the beneficiary is not opposed to the fund and can not influence his actions or hinder achievement of its objective.
- In the Law on Private Foundations there are sections favorable for protection of assets.
Requirements
Panama Private Interest Foundation is a legal entity created by private or public instrument, by one or more individuals or legal person (referred to as the founder (s)). The distribution of donations of funds or assets of the founder is essential for the creation of Fund. The Fund becomes a legal entity by registering in the State Register the Charter of Fund, which contains:
- Name of the fund, which must include the word "Foundation" (in any language) • Its place of business (legal address)
- The initial capital / property (in any currency), which can not be less than the equivalent of U.S. $ 10,000.00
- Names and addresses of the members of the Foundation Council, who manage the property (they may be natural or legal persons)
- Name and address of the resident agent of the Fund in Panama (which must be a lawyer or law firm)
- The goals and objectives of the Fund (it should be possible, reasonable, moral, and legal)
- How beneficiaries to be selected (which may be a founder)
- Reserving the right to amend the Articles of Association of the Fund
- Duration of the fund
- Use of Fund's assets, and how the property should be liquidated in the event of termination of the Fund.
The Council of Fund
Members of the Council of Fund may be natural or legal persons of any nationality and need not to be residents of the Republic of Panama. If required, we can provide the members of the board of the fund. The Board of the Fund has the following duties and responsibilities:
- Management of the Fund's assets in accordance with the Charter of the Fund or its regulations.
- To perform these actions, contracts, or transactions that may be appropriate or necessary to fulfill the purpose of the fund and to include in such contracts, agreements and other documents, or obligations, such clauses and conditions that are necessary and appropriate, being in line with the objectives of the fund and does not contrary to law, morals, good manners or public order.
- Inform the beneficiaries of the Fund on its economic situation, as envisaged in the Fund’s Charter or its regulations.
- To transfer to Fund beneficiaries assets or resources placed in the fund on their behalf in accordance with the Charter of fund or its regulations.
- Perform acts or contracts authorized by the law of private foundations and other applicable laws and regulations.
Beneficiaries
There may also be prepared additional rules to fund (which are not registered in the public registry), and this document may include details regarding the Board of the Fund, the frequency of reporting, the reasons for the removal of the Foundation Council, as well as the allocation of income to the beneficiary. It is not required to appoint the beneficiaries in the Charter of Fund.
Liabilities
Panamanian Private Foundations As stated in the law on private foundations, for all legal purposes the fund's assets are separate from the personal assets of the Founder. Therefore, for such property can not be seized, it can not be the subject of prosecution or any action or preventive measures, except for the obligations assumed for the purposes of the fund or the legitimate rights of the beneficiaries of the fund. Under no circumstances should the fund's assets be used to meet the obligations of the founder or the beneficiaries. Founder lenders have the right to object to the payment or transfer of assets to the Fund, because sometimes it defrauded the creditors, but the right to such actions of creditors is set for three (3) years from the date of contribution or transfer of assets in the fund.
In addition, members of the foundation council, regulatory authorities, if any, as well as civil servants or employees of the private sector, having details about the Fund has no right to disclose confidential information about the Fund. Violation of this provision threatens to six (6) months of imprisonment and 50, 000.00 fine, without prejudice to the corresponding civil liability.
