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The Private Interest Foundations
(Part II)

REQUIREMENTS FOR THE FORMATION OF A
PRIVATE INTEREST FOUNDATION IN PANAMA

The Foundation Charter shall be executed by the Founder by means of a private document, in which case it should be authenticated by a Notary Public, or by means of a public document directly before a Notary Public.

The requirements that must be contained in the Foundation Charter as follows:

1. Name desired for the Foundation expressed in any language with characters of the latin alphabet. The name shall include the word "Foundation" to distinguish it from natural persons or from juridical persons of another nature.

2. Initial patrimony of the Foundation, expressed in any currency of legal tender, and which shall in no case be less than an amount equivalent to ten thousand U.S. dollars (US$10,000.00).

3. A complete and clear designation of the member or members of the Foundation Council, to which the Founder may belong, including their address.

4. Domicile of the Foundation.

5. The name and domicile of the resident agent of the Foundation in the Republic of Panama, who shall be a lawyer or law firm. The resident agent must countersign the Foundation Charter prior to its registration at the Public Registry.

6. Purposes or objects of the Foundation.

7. The manner of appointing the beneficiaries of the Foundation, which may include the Founder.

8. The reservation of the right to modify the Foundation charter when deemed convenient.

9. Duration of the Foundation.

10. The destination to be given to the estate of the Foundation and the manner in which such estate shall be liquidated in the event of dissolution.

11. Any other lawful clauses which the founder may deem convenient.

In order for a law firm to provide full services in the constitution and management of Private Interest Foundations, the following information will be necessary:

1. Name desired for the Foundation to check on its availability.

2. Initial patrimony if other than the standard of $10,000.00.

3. Names and addresses of the members of the Foundation Council, which will be no less than three (3) members (natural persons), unless a juridical person is appointed, in which case a minimum of one member is required. The law firm may provide nominees for these positions.

4. Domicile of the Foundation, if other than Panama.

5. Purposes.

6. Duration, if other than ilimited.

7. Name of the protector if required.

Registration of a Private Interest Foundation takes approximately 3 to 5 working days.

No other legal or administrative authorization is necessary after the registration of the Foundation Charter in order to constitute the Foundation as a legal entity.

 

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This information has been provided by Patton, Moreno & Asvat

DISCLAIMER

To request more information or to form a private interest foundation,
click here to contact an attorney.