The Benefits of Using a Panamanian Private Foundation: A Look at the Characteristics

Panamanian private foundations are a popular choice for individuals, families, and companies looking to protect their assets and achieve their philanthropic goals. These foundations are legal entities that are separate from their founders, and they offer a number of benefits, such as privacy, flexibility, and tax advantages.

Delvalle & Delvalle Law Firm is a leading provider of services for registering Panamanian private foundations. Our team of experienced attorneys can help you create a foundation that meets your specific needs. We can also assist you with the day-to-day management of your foundation and provide guidance on all aspects of Panamanian private foundation law.

Key Characteristics of Panamanian Private Foundations

There are four key characteristics of Panamanian private foundations:

Founder: Is the person who establishes or subscribes to the foundation in the Public Registry of Panama, owner of the funds and goods that will be transferred.

The founder can be one or more natural persons or a juridical person of any nationality.

Foundation council: To operate, the foundation must have a foundation council, which is the one in charge of managing the foundation before the government and third parties.

Our clients have the option to choose two types of foundation councils:

• Natural persons: To do business, the foundation shall have a minimum of three persons of any nationality to form the foundation council. The council members’ names and addresses will appear in the foundation charter that must be registered at the Panama Public Registry. The client appoints three persons for the foundation council, or, if preferred, we may appoint members of the nominee council. We offer this service to protect our clients` privacy and anonymity.
• A legal person: A national or foreign juridical person can be the foundation council. For example, it can be a Panamanian Corporation or a Hong Kong Corporation.

The founder could likewise participate in the foundations’ management, with all the majority of the juridical person’s shares acting as council being issued in his favor (as registered or bearer shares).

Protector: The client might choose to appoint a protector, who will be appointed to ensure strict compliance with the objectives and purpose of the foundation, as well as the interest of the beneficiaries.

The protector can be a natural or juridical person, the client, or a trusted person named by the client. There are two ways to designate a protector:

• By the foundation council during the incorporation process and appearing in the foundation charter.
• Through a private document authenticated by a Public Notary, the client holds complete control of the foundation in a private manner.

Beneficiaries: These are the persons or institutions receiving benefits from the foundation.

In Panama, the beneficiary of a foundation can be the founder. It is not required to list the foundations’ beneficiaries in the foundation charter (A legal document registered in the Public Registry). You can list them in the “Regulations of the Foundation” (A private document that is not registered).

Here are some of the key benefits of working with Delvalle & Delvalle Law Firm to register your Panamanian private foundation:

• Expertise: Our team has extensive experience in registering Panamanian private foundations. We can help you navigate the complex legal and regulatory requirements of setting up a foundation.
• Confidentiality: We understand the importance of confidentiality for our clients. We will keep all of your information confidential and secure.
• Personalized service: We will work with you to understand your specific needs and goals. We will create a foundation structure that is tailored to your circumstances.

Benefits of Panamanian Private Foundations

In addition to these key characteristics, Panamanian private foundations also offer a number of other benefits, such as:

• Privacy: The identity of the founder, the beneficiaries, and the assets of the foundation are all confidential.
• Flexibility: The foundation charter can be customized to meet the specific needs of the founder.
• Tax benefits: Panamanian private foundations are not subject to income tax in Panama.
• Asset protection: Panamanian private foundations can help to protect assets from creditors, lawsuits, and other legal risks.
• Succession planning: Panamanian private foundations can be used to ensure that assets are transferred to the desired beneficiaries after the founder’s death.

Panamanian private foundations are a valuable tool for individuals and families who are looking for a way to protect their assets, achieve their philanthropic goals, and plan for their family’s future. If you are considering setting up a Panamanian private foundation, it is important to consult with an experienced attorney like Delvalle & Delvalle to discuss your specific needs and goals.