Panama Foundation Facts

POLS explains important facts about Panama Foundations.

IMPORTANT NOTICE TO US PERSONS: POLS does not offer Panama Private Interest Foundations to US Persons (Citizens or Residents of the US).

Panama Private Interest Foundation Facts

  • No Reporting Requirements: Panama does not impose any reporting requirements or taxes for Panamanian Foundations as long as their income is generated outside of the territory of Panama.
  • No Piercing the Corporate Veil: Panama does not allow “piercing the corporate veil” (in civil cases).
  • Private Ownership and Control: 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.
  • No Capital Requirements: Panama Foundations do not require Paid-In Capital.
  • Directors: Every Panama Foundation must have a council (same as directors of a corporation), who’s names and addresses are registered in the public registry.  The council members can be either individuals or entities of any nationality and resident of any country. If the council is made up of individual persons, then it requires 3 council members (President, Secretary and Treasurer).  If the council is an entity, then only one council member is required.
  • Nominee Foundation Council: We offer our clients the optional service of using our “Nominee Council” for their Panama Foundation(s). When we appoint nominee council members for the Foundations that we establish for our clients, we always provide our clients with pre-signed, undated letters of resignation from the council members so that our client can replace those council members at any time.
  • Directors or Beneficiaries Meetings: Annual general meetings of council members of the Panama Foundation are not mandated or required. However, if meetings are held, they can take place anywhere in the world by proxy – 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.
  • Corporate Books: Every Panama Foundation should maintain a minute (council meeting) record book, which can be held anywhere in the world.
  • Annual Corporate Franchise Tax: Panama foundations must pay a low annual corporate franchise tax of US$400 to remain in good standing.  The deadline for the tax payment depends on when the entity was formed.  If the entity was formed from 1 January to 30 June, then the tax is due on the 30th of June. If the entity was formed from 1 July to 31 December, then the tax is due on the 31st of December.  If the tax is not paid on or before the due date, the entity will be charged a late penalty of US$50.  If the tax is not paid after the following “deadline” period, the entity will be charged a second late penalty of US$300.
  • Convenience: It is not necessary for the interested parties to be present in Panama for the purpose of establishing a Panama Foundation.
  • No Business License Requirement: Panama Foundations DO NOT require a Panama commercial business license to operate internationally, outside of the Panama territory.
  • Re-Domiciliation: Foundations from other jurisdictions may be “re-domiciled” to Panama, and vice-versa.
  • Corporate Seal: A Panama Foundation seal is optional.  We also offer Foundation seals if you want one.  Please see our Fee Schedule for pricing details.
  • Legal Address: When registering a new Panama Foundation, it must have a legal physical address that is included in the articles of incorporation. Our law firm provides a legal physical address as Resident Agent and Registered Office.
Contact Us to create a Panama Private Interest Foundation.

 

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