• 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), whose 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: For purposes of confidentiality, most clients prefer their attorneys to provide nominee council members for their Foundations. After your attorneys appoint nominee council members for the Foundations that they establish for you, they should provide pre-signed, undated letters of resignation from the council members so that you can replace those council members at any time.
• 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 corporations & foundations should pay a low annual corporate franchise tax of US$250 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 be charged a late penalty of US$50.00 . If the tax is not paid after the following "deadline" period, the entity will be charged a second late penalty of US$250.00.
• Convenience: It is not necessary for the interested parties to be present in Panama for the purpose of establishing a Foundation.
• 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.
• Legal Address: When registering a new Panama Foundation, it must have a legal physical address that is included in the articles of incorporation. |
