General Information About Panama Foundations
B. Panama Foundation Facts
· Second Most Popular Jurisdiction in the World: Panama is the registered domicile for over 400,000 corporations & foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong.
· No Reporting Requirements or Taxes: Panama does not impose any reporting requirements or taxes for Panamanian Foundations.
· No Piercing the Corporate Veil: Panama does not allow "piercing the corporate veil", so your Foundations books are maintained 100% private and confidential by law.
· Anonymous 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.
· 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 Foundation(s). For purposes of confidentiality, most of our clients prefer that we provide nominee council members for their Foundations. 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. There is no additional fee for the use of our nominee council.
· Directors or Beneficiaries Meetings: Annual general meetings of council members of the 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: The Registered Agent is not required to keep any records for the Foundation, however, it is recommended that every Foundation should maintain a minute (council meeting) record book, which can be held anywhere in the world.
· Annual Corporate Franchise Tax: Panama Foundations should pay an annual corporate franchise tax of US$150 to remain in good standing. The public registry allows a grace period of 90 days from the date of incorporation to pay the corporate franchise tax. After 90 days, if the tax is not paid, there is a US$30 late fee for every year that the tax is not paid on time.
· Convenience: It is not necessary for the interested parties to be present in Panama for the purpose of establishing a Foundation. We can handle everything for you without you having to come to Panama.
· No Business License Requirement: Panama Foundations DO NOT require a commercial business license to operate internationally.
· Re-Domiciliation: Foundations from other jurisdictions may be "re-domiciled" to Panama, and vice-versa. Many people who have corporations in jurisdictions such as Liechtenstein, Switzerland, and other jurisdictions are currently re-domiciling their Foundations to more affordable, private and secure jurisdictions such as Panama.
· Corporate Seal: A 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.
Note: If calling to Panama from the US or Canada, you must dial "011" prior to the country code (507).