PANAMA PRIVATE INTEREST FOUNDATION

In an effort to provide additional opportunities to the Offshore Community Law 25 of 1995 was created. Said Law contains the procedures and requirements for the creation of Private Interest Foundations.

ADVANTAGES OF PRIVATE INTEREST FOUNDATION

Private Interest Foundations may be used as tax and estate planning device with the following advantages:

1. They provide a fiduciary structure for the orderly transfer and disposition of assets to beneficiaries upon the death of the Founder, keeping control of the assets during lifetime;

2. They may be established to have effects from the date of their constitution or after the death of the Founder;

3. According to Law 25 of 1995, inheritance laws that apply in the domicile of the Founder or the Beneficiaries, shall not be effective against the Foundations assets nor may these laws affect the validity or performance of the Foundations objectives;

4. Foundations are established to carry the specifics goals set out in the Foundation Charter and may additionally undertake sporadic commercial activities, exercise rights pertaining to their holdings, own property, contract obligations and take part in administrative or judicial proceedings.

5. A Private Interest Foundation should be established with a patrimony destined to fulfil its objectives, which shall be no less than US$10,000.00. Said patrimony may be increased by additional contributions of the Founder or third parties;

6. The assets of the Foundation become legally independent and do not form a part of the private estate of the Founder. Such assets are not sizeable and may not be subject to any precautory action or measure, unless such action or measure pertains to obligations incurred or damages arising from the fulfilment of the Foundations objectives;

Notwithstanding the creditors of the Founder or of a third party shall have the right to contest the contribution or transfer of assets to a foundation when such transfer constitutes an act in fraud of the creditors. The rights and actions of such creditors shall lapse at the expiration of three (3) years, counted from the date of the contribution or transfer of the assets to the foundation.

7. According to article 27 of Law 25 of 1995, Private Interest Foundations are except from payment of any taxes, contributions, duties, liens or assessments of any kind arising from the acts of constitution, amendment or extinction of the same, as well as acts of transfer or encumbrance of the Foundations assets and the income arising thereof, when related to:

(1). Assets localized abroad;

(2). Money deposited by natural or juridical persons whose income does not derive from a Panamanian source is not taxable in Panama for any reason;

(3). Shares or securities of any kind issued by corporations which income is not derived from a Panama source, or which are not taxable for any reason, even when such shares or securities are deposited in the Republic of Panama;

The transfer of unmovable property, titles, certificates of deposits, assets, funds, securities or shares carried out by reason of the fulfilment of the objectives of the foundation or the termination of the same, in favor of relatives within the first degree of consanguinity or the spouse of the Founder shall also be exempted from all taxes.

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.

INFORMATION REQUIRED

In order for us to provide 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. The word Foundation must be included in the name, for example: The Clear Water Foundation, John Doe Foundation for the Children, etc;

2. Initial patrimony if other by the standard of U.S.$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. We may provide nominees for these positions;

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

5. Duration, if other than limited;

6. Name of the protector if required.

If required, we can provide standard Regulations with blank spaces to name beneficiaries for an additional fee of US$150

COSTS

We use Panama to form the offshore foundations, because the Panama law offers most protection.

The fees to form a Panama Private Interests Foundation: US$1350
This price includes:
- Notarial and registration fees
- Certified translation to English of the Foundational Charter
- Notarized Blank Power of Attorney
- Three (3) nominee foundation council members (If this service is required, there will no charge for the first year)

Options:
Certificate of Incorporation with Apostille US$200 (required for any bank account)
Courier delivery: $100
Certificate of Good Standing (after first year of existence) US$200.
Nominee services US$400 p.a.
Mail Forwarding: US$400 p.a. + $100 deposit
Bank account in Panama: US$600. (see below)

Process of incorporation will take between 8 to 15 working days after receipt of payment.Annual maintenance fees after first year:
Registered Office/Agent: $500 p.a.
Government Licence: $250 p.a.

Options:
Nominee services US$400 p.a.
Mail Forwarding: US$400 p.a. + $100 deposit

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