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In 1995, the nian government introduced “ Private Interest Foundations” by carefully adapting various European principles and combining a new and innovative trust model to provide valuable protection, flexible management options and an efficient vehicle for transferring wealth and assets unto family and future generations.
Tax Advantages. Private Interest Foundations offer total exemption of taxes in the Republic of , which include: income tax, wealth tax, inheritance tax, sales tas, transfer tax, among several others. Also, there are no requirements to file annual tax returns or financial statements for these foundations.
Complete Privacy & Anonymity. Maintain full control without ever disclosing your identity, because at no time, is it required to disclose the name of the founder, beneficiary or protector of a Private Interest Foundation. Addidionally, Law 25 (article 35) of the law on Private Interest Foundations states the Foundtion Council , the Protector and the Resident Agent (law firm) and any persons or institutions which by reason of their function, obtain information related to the activities, transactions or operations of the Private Interest Foundation, are required by law to preserve and uphold secrecy, even after the foundation has been liquidated. Violators face imprisonment of up to six months and fines of up to US $50,000.
Hassle-Free Set-Up & Management. Only 3 council members are required to set up a foundation, and most law firms in Pananma offer “nominee council” services for this purpose. There is no limitation in respect of perpetuities, accumulation of capital, etc. that are generally required for other similar structures required for other similar structures in different jurisdictions.
Flexibility. In general, Private Interest Foundations can engage in a variety of business transactions in most any part of the world and/or currency. The founders, members of the foundation council, beneficiaries and protectors may be individual or corporations and of any nationalilty. The members of the foundation council are not required to be the actual founders. The founders, the protectors and the members of the foundation council can indeed be the beneficiaries of the foundation, however it is not required. Plus, there are no restrictions on the maximum or minimum number of founders, members of the foundation council, beneficiaries or protectors for a Private Interest Foundation. Founders meetings can even be held outside of , and representation via proxy is also permitted. The foundation charter can be signed by a nian attorney or by a nominee appointed by the attorney, and of course, there is no need to ever disclose the name of the original founder. Private Interest Foundations that were established and incorported outside of can be easily, re-domiciled in through a simple legal procedure.
Low Start-Up & Maintenance Fees. Average set-up costs average about $1000 to start a Private Interest Foundation in , and the set-up process usually takes about a week. The annual maintenance costs are $300 for government fees, and most law firms charge an average of $300-$500 for resident agent fees (varies by law firm).
Pension Management. Foundations can aid in the management of profit-sharing as well as, employee pension plans.
Holding Entity. Use a foundation as a holding entity for corporation shares or as a vehicle for collecting and the holding of royalties. Private Interest Foundations can also be used as a vehicle to own assets of considerable wealth and value such as, real estate, yachts, intellectual property, art and jewelry, gold bullion, cars and much more.
Investment Vehicle. Foundations can also provide a protective vehicle for investements in real estate, equities, bonds, mutual funds, bank deposits, futures trading currency trading, or other investments.
Asset Protection. Article 11 of law 25 guarantees that assets held within Private Interest Foundation cannot be attacked, frozen or sequestered, which provides the ultimate “asset protection” vehicle (i.e. divorce, law suits, etc.). Foundations are used as a medium to protect assets against excessive taxes, claims by creditors, frivolous lawsuits, political volatility or forced heir ship. Furthermore, Private Interest Foundations can also hold and operate bank acocunts in any part of the world. |
