The present law related to Panama foundations has been crafted to offer a lot of benefits to those who are interested in setting up an offshore account here. The benefits are maximum in terms of tax planning, confidentiality, and flexibility. These foundations can be used for many more good reasons including asset protection.If you want to set up offshore corporate account here in Panama, you have to fulfill some formalities. As a founder, you need to draft a Foundation Charter. The charter should contain the name of the foundation, the purpose, the name and contact address of the members, and the initially contributed amount. The minimum amount of $10,000 is the initial amount required to start a Panama foundation.
The name and address of the Panamanian agent have to countersign the charter and other details such as the way charter can be amended and the time duration of the foundation. Once all these formalities compete, the foundation is established.The biggest advantage of a Panama foundation is that it is highly confidential. Although the charter is registered in a public register but this important document does not have the details of a possible protector or the information of the beneficiaries. The charter also does not contain the details of how the assets are distributed to the beneficiaries. And there is no annual reporting required. The confidentiality of the information about the foundations is protected by law and those disclosing this information is bound to pay heavy fines or may even prison sentences.Today many individuals and businesses are attracted to set up foundations in Panama. A foundation can be used for multiple purposes. One more benefit is that the asset in the foundation is owned by a separate legal entity and no longer by an individual. Many think of establishing a foundation in order to arrange their inheritance. They can set out how and when the assets can be distributed among the beneficiaries after their passing away. This advantage can help in avoiding inheritance taxes in some cases.
As in this case, the asset is transferred to another legal entity, the assets in the foundation are out of the reach of the creditors. The offshore company formation experts and marketing analysts recommend businesses to establish Panama foundations because they consider it a useful tool for asset protection, tax planning, confidentiality and flexibility. If you are interested in setting up an offshore corporate account or establishing a Panama foundation, you should take help of a service provider that helps individuals in setting up offshore accounts. This will make the entire process easy and simple.
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