The Panama Private Interest Foundation (PPIF) is a type of Private Foundation formed under the laws of Panama.
The Private Foundation is Europe’s equivalent of a Trust and has been used principally as an estate and succession planning tool by wealthy European families for hundreds of years.
A Foundation is a legal entity, created at the request of a Founder, for the benefit of a group or class of beneficiaries which is managed by a Councillor or Board of Councillors.
Panama’s version is based upon the Liechtenstein “Stiftung” (a family foundation). In terms of legal structure it is like a hybrid or combination of an Offshore Company and an Offshore Trust: Like a company it can sue and be sued in its own right and like a Trustee it can own, receive and hold/manage assets for the benefit of others. Like a Trust the Founder can request the appointment of a “Protector” to watch over the Foundation thus ensuring that the Founder’s wishes are carried out by the Councillor/s.
The principal difference between a private foundation and an offshore company is that a foundation, generally speaking, cannot engage directly in commercial business activity, although it can own investments such as real estate, shares, bonds etc. Given that it does not appear to be captured by the wealthier countries’ (eg UK, Canada, USA, Australia, New Zealand, France, Italy, Spain) Controlled Foreign Corporation (“CFC”) Laws a Private Interest Foundation is commonly formed to hold shares in an Offshore Company or IBC thereby creating a vehicle that boasts both tax deferral and asset protection capabilities.
Key Features of the Panama PIF include:
- Variety of Purposes: a Panama PIF may be established for the benefit of a person (or persons), a family, or for a specific social purpose.
- Second Most Popular Offshore Jurisdiction in the World: Panama is the registered domicile for over 400,000 corporations & foundations, making it the second most popular international offshore financial centre in the world, after Hong Kong.
- No Reporting Requirements or Taxes: Panama does not impose any reporting requirements or taxes on its Foundations.
- No Piercing the Corporate Veil: Panama does not allow “piercing the corporate veil”; hence Panama Foundations’ books are maintained 100% private and confidential by law.
- Confidential Ownership and Control: The Protector and Beneficiaries need not be publicly registered. Panama Foundations Protectors can be appointed through a Private Protectorate Document, and the Beneficiaries can be appointed through a Private Letter of Wishes, written and signed by the Private Protector.
- Corporate and Nominee Councillors are allowed: Although the Councillor/s name/s must be recorded in the public registry (minimum 3 Councillors are required) a Corporate Professional “Nominee’ Founder or Councillor may be appointed to preserve management and/or ownership privacy
- Meeting Flexibility: Annual general meetings of council members of the Panama Foundation are not mandatory and meetings, if held, can take place anywhere in the world via telephone, email or other electronic means. Any resolutions passed are valid regardless of whether they are signed on different dates or in different jurisdictions.
At OCI we believe in giving you more for your money than would the average Foundation formation service. Hence included in the registration package for your Panama Foundation is the following:
- Unlimited name availability inquiries
- Advice from an experienced International Corporate Lawyer on how to structure your Foundation
- Preparation (overseen by a Lawyer) of application to register the Foundation
- Preparation (overseen by a Lawyer) of the Foundation Charter
- Preparation (overseen by a Lawyer) of the Foundation regulations
- Attending to filing the Foundation registration request with the registry
- Attending to payment of government filing fees
- One year’s Registered Agent’s service in the country of registration
- One year’s Registered Office service in the country of registration
- Mailing address in the country of registration
- Delivery of registration pack by international courier (ie DHL/Fedex/TNT etc)
- Unlimited free legal consultations for 12 months
Documents included in your Incorp pack:
- Certificate of Registration
- A sealed/stamped copy of the Foundation Charter
- Official English translation of Foundation Charter
- Foundation Regulations
- Resolution to open a bank account
- Resolution to appoint a lawyer for the Foundation
- Resolution to appoint an accountant for the Foundation
- Sample/template letter of wishes
- Resolution appointing you as the Foundation’s authorised representative in commercial negotiations
- Resolution appointing you as Investment adviser to the Councillor/s (ie the Foundation’s CEO or Management team)
- Agreement authorising you to represent the Foundation in commercial negotiations
- Agreement appointing you as Investment adviser to the Councillor/s
Price (all inclusive): $US1,900
With tax effective offshore management (including Professional Nominee Councillor) + $600
What are Foundation Regulations?
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Every effort has been made to ensure that the details contained herein are correct and up-to-date, but this does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.