Foundations In Panama

Overview

Foundations are incorporated and regulated in Panama by Law 25 of June 12, 1995 (the "Foundations Law") and are commonly referred to as Private Interest Foundations ("PIF").

Like a company, it is an incorporated entity, having its own legal personality, which means it can hold assets, transact and sue in its own name.

Uses

A PIF is popularly used for succession and asset protection purposes and as a part of larger offshore structures for corporate transactions. Commonly a PIF is established by an individual donating assets (the "Founder"), which are applied by the Council in accordance with the Charter and Regulations for the benefit of certain Beneficiaries.

The PIF itself may not engage in regular trade or commerce, but can do so by way of an underlying company.