Ismael Gerli of Alliott Group's Panama law firm member Gerli Wren & Co. provides an introduction to the benefits of Panama Private Foundations

Private Foundations are a unique form of legal entity which acts like a Trust and operates like a company. Following are some of the advantages of Private Foundations:

1. A Foundation is a sui generis body corporate, in existence only in Panama, Liechtenstein and Austria, but where only Panama and Liechtenstein are "offshore jurisdictions".
2. It offers total secrecy and anonymity; no requirement to disclose beneficiaries; no requirement to file annual returns or financial statements; full exemption from taxation on any business activity or transaction carried outside of Panama; simple ongoing administration; complete management privacy and confidentiality.
3. A Foundation may transact in whatever currencies it chooses; its founders, members of the foundation council and protectors may be of any nationality and may be residents of any country; the accounting books of the Private Foundation may be kept in Panama or abroad.
4. In no case may its assets be used to satisfy the founder's or the beneficiaries obligations.
5. The law on inheritance regarding the founder's or the beneficiaries' domicile is not opposable to the foundation nor may it affect its validity or prevent the fulfillment of its objectives.
6. There are favorable asset protection sections in law.

Please click on the 'Download Document' button for more information on Panama Private Foundations. Alternatively please contact Ismael Gerli igerli@gerlico.com

Article Date: 15th June 2010

Author: Ismael Gerli

Firm: Gerli Wren law office