Private Interest Foundations

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Star Legal is pleased to introduce you the "Asset Protection" option through a Private Interest Foundation in Panama.

The main function of this legal figure is to administer the assets that have been granted to it in order to comply with the will of the founder, who can act in a personal capacity or through a third party. These assets can be of a personal or commercial nature, which makes this figure ideal for the organization and protection of assets.

The assets to be managed by the Foundation Council become part of the Foundation's Heritage, which is detailed in a private document called "Regulations". These assets are separate and independent from the founder.  Said assets cannot be seized for reasons attributed to the founder. 

It will be necessary to register in the Public Registry of Panama a document called the Foundation Charter, which establishes the name of the Foundation, name of the Founder, minimum assets and the Foundation Council, which can be a minimum of three (3) natural persons or one (1) legal person.

In addition, the beneficiaries of the foundation and their protector must be established. Said persons can be appointed in the Founding Charter or in the private document called Regulations, in order to provide greater privacy.

It is common to use a Private Interest Foundation as a "holding company", since they are allowed to be holders of shares and receive dividends and income from other assets. However, its biggest difference compared to a corporation is the inability to carry out commercial activities on a regular basis. 

Since private interest foundations are used for the distribution and organization of patrimony, they are also used for patrimonial succession, better known as "Inheritance". However, the succession process is carried out privately and without major complications than those presented by a testamentary succession.

During the life of the founder, the income generated by the assets of the foundation can be delivered to him. Once the founder dies, said income will be distributed to the beneficiaries, as established in the Regulations and in accordance with the provisions of the founder, which makes it an excellent figure for structuring family assets and their distribution.

We are pleased to confirm that registering a Panamanian private interest foundation is extremely simple and fast. It will be a pleasure for us to assist you.