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The Private Interest Foundations
(Part III)

MANAGEMENT STRUCTURE

The Council of the Foundation shall be the governing body, entitled to exercise all the powers of the Foundation and subject to the powers reserved by Law, the Foundation Charter and the regulations which may be adopted from time to time.

The Foundation Council shall be composed of 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 Foundation Council shall render accounts annually to the beneficiaries of the Foundation, unless otherwise specified in the Foundation Charter.

The Foundation's Regulations are for internal purposes of the Foundation and are not a matter of public records. Information regarding names of beneficiaries and of the protector and method for distribution of assets can be contained within the Regulations; thus, will not be publicly disclosed.

AMENDMENTS TO THE FOUNDATION CHARTER

Amendments to the Foundation Charter shall be executed in accordance with the provisions of the Foundation Charter and must contain the date and name of the person(s) subscribing the same. The signature of the persons duly authorized to carry out such amendment must be authenticated by a Notary Public of the place of execution of the document.

TAXATION

Panamanian Private Interest Foundations need to pay an annual franchise tax of US$150.00.

According to article 27 of Law No. 25 of 1995, Private Interest Foundations are exempt from payment of any duties arising from the acts of constitution, amendment or extinction of the same, as well as acts of transfer or encumbrance of the Foundation's assets and the income arising thereof.

CONTINUATION OF A FOREIGN FOUNDATION AS A PANAMANIAN
PRIVATE INTEREST FOUNDATION

Foundations that are organized pursuant to the laws of a foreign country may continue their existence in Panama and, conversely, Foundations that are organized pursuant to the laws of Panama may continue their existence in accordance with the laws of another country.

SCHEDULE OF FEES

Normal fees for registration and management of a Private Interest Foundation may vary from one firm to another. An initial fee ($1,000.00 - $1,500.00) includes all expenses incurred in the formation process, such as incorporation, notarial, communication and courier expenses.

Next -> Sample of standard form of Foundation Charter


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.