Panama IBC Corporations
From our experience working with Private Foundations we can select the following main advantages of this type of structure that although relatively unknown to many clients has been gaining traction year after year since its inception and has drawn the attention of head of families throughout the world looking for estate planning, asset protection, and in general as a holder of all kinds of assets.
The anonymity and privacy of the beneficiaries is kept, since their names are not registered at any Public Office. Also, there is no legal requirement to publicly disclose the name of the real Founder or Protector.
Note: There is an approved law for the registry of final beneficiaries of the foundation; when in application, the beneficial owner identity will remain private but guarded by a Panama superintendence in case they are required by a Panamanian authority.
No requirement to pay or deposit the Foundation Authorized Capital.
The payment or deposit of the foundation authorized capital is not required for the incorporation of the foundation and there is no deadline to make such payment.
Flexible reporting requirement for activities outside Panama.
No requirements to file annual returns or financial statements; full exemption from taxation of any business activity transacted out of the Republic of Panama.
However, Panama Private Foundations are obligated by law to keep accounting records detailing its assets, incomes and its support documentation, which could be held by the client outside Panama; however, the client shall send us a copy each year of said records and shall be presented if a Panama authority requests them from us as Resident Agents.
The Panamanian Foundation offers flexibility, to transfer or to administrate a patrimony on behalf of the same Founder or third parties, families, children or inheritors. The Founders and the members of the foundation council may hold their meetings in any country and may be represented by proxy.
Foundation books and accounting records can be kept and abroad.
The foundation books and accounting books may be maintained in Panama or abroad and can be kept by electronic means.
Note: Panama Private Foundations are required by law to keep accounting records detailing all its assets, incomes and its support documentation, which could be held by the client outside Panama; however, the client shall send us a copy each year of said records and shall be presented if a Panama authority requests them from us as Resident Agents.
The Panama Private Foundation can act as a fiduciary structure for the orderly transfer and disposition of the assets to the beneficiaries upon the Founder’s death, keeping control of assets during its lifetime.
Inheritance laws that apply in the domicile of the Founder or the beneficiaries shall not be effective against the foundation’s assets, nor may these laws affect the validity or performance of the foundation’s objectives.
It is possible to transfer a foreign foundation to Panama.
A Private Interest Foundation duly organized in other countries, may be migrated to Panama.
Low incorporation and maintenance cost.
The Panama Private Interest Foundation creation cost and management is very competitive with respect to similar structures in Europe and of other similar jurisdictions.
The Panamanian legislation regulating Foundations, confer upon the Foundation excellent mechanisms for the protection of the same against third party claims.
The Founder and Council could be a person or a corporate entity.
The Panama PIF Founder and Foundation Council could be a natural person or act through a corporate entity.
A superior holding legal structure.
A Panama Foundation allows the investor to perform transactions and investments and to distribute the proceeds generated from the same, with a grade of impenetrability superior to any other type of investment instrument.
Fast incorporation time frame.
Brief Incorporation time frame, approximately four business days.
Panama, like many other international financial centers, only taxes income produced or generated by economic activities carried out within the country. Consequently, someone who utilizes a Panamanian Private Foundation outside of Panama shall not be subject to taxes within the country of Panama, with the exception of the annual franchise tax of US$400.
Important: The client must consult with a legal or tax specialist in his country of residence or nationality to ensure compliance with his local tax obligations.
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Advanced Tower, 1st Floor
Panama City, Panama
+507 264.5570 | 264.5931