The panama foundation – a complete summary

The Panama Foundation – a Complete Summary The Panama foundation was introduced by Panama in 1995 and a number of jurisdictions followed this action later on. At the present time, Panama foundation offers a great measure of confidentiality and flexibility and is used for a range of purposes including asset protection, inheritance planning, etc.

The Panama foundation offers some of the best asset protection and estate planning available today, throughout the world. It is a foundation that is completely separate from its creator and is a global solution for an affordable and flexible estate planning instrument which can be used to hold various assets such as companies, bank accounts, real estate, etc.

NOW, SOME OF THE USES OF PANAMA FOUNDATIONS ARE

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Panama foundations are mainly used to hold shares, patents, collect royalties, and manage other passive activities

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These are used as offshore asset protection for those who want to diversify out of the US

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Panama foundations are also used in moving assets out of the US estate

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These are also used as investment management and private asset management by firms

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Panama foundations are one of the preferred choices for inheritance planning

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THERE ARE VARIOUS ADVANTAGES OF OFFSHORE PANAMA FOUNDATIONS WHICH ARE AS FOLLOWS

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Guaranteed 100 % confidentiality and complete privacy

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Panama foundations are not subject to or accountable to any foreign laws and judgments

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Panama is a strong and stable democratic country

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The Panama foundation endowment does not have to be paid up at time of registration

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One can easily domicile a Panama foundation into or out of Panama

Now, a Panama foundation can be simple as well as complex as per your requirements and this flexibility is possible because of the Foundation Council of Panama, which is very unique. It is the Foundation Council that allows you to maximize asset protection or separate yourself from structure and assets. Your Panama Foundation Council may consist of three or more persons or one legal entity i.e. a corporation or LLC. One can manage the Panama foundation directly until and unless there is an issue.

SOME GUIDELINES RELATED TO PANAMA FOUNDATIONS

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A Panama foundation can be formed using any name. One needs to include “Foundation” in the name.

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A Panama foundation requires a local address and a local agent for service of your process

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Any person or entity can be the founder the of Panama foundation

Lastly, if you wish to form a Panama foundation, search for a trustworthy and competent service provider who can structure and assist you in your affairs and foundation formation. There are also some service providers who can look after your entire Panama foundation formation and can act as a founder on your behalf and will function with your instructions.

Always set up an offshore corporate account through offshore service providers for best outcome

Many offshore merchants face a dilemma while opening an offshore bank account; whether it is worthwhile to pay someone for it or not? However, both the options i.e. whether you do it yourself or take the help of an intermediary, have their own set of benefits and drawbacks.

Getting assisted by an intermediary or offshore service provider will help you in a number of ways such as: 

If you use an offshore service provider to set up offshore corporate or personal account, you will be free from handling most of the paperwork. These offshore service providers often handle most of the paperwork for you and all you need to do is to just fill the application form and provide whatever due diligence the bank requires. Usually, you need to provide a notarized copy of your passport and bank statement as address proof.

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There are a number of offshore banks which require a reference while opening an offshore account. In this case, a service provider can be very helpful and worthwhile.

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There are few banks which have a tie up with some service providers and only open accounts through service providers or any other trusted person.

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On the whole, service providers make the whole procedure easy and hassle-free.

Contrary to this, there are few drawbacks too which need to be considered such as:

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A service provider or intermediary generally deals with 10 to 20 offshore banks which offer you a limited selection of banks.

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Taking the help of a service provider costs more than to do it yourself.

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Till the account is set up, you will have no contact with the bank

No matter which decision you stick to but the most crucial thing is to take an informed decision. You must have a complete knowledge about the service provider you are choosing starting from which banks they work with and what services they

offer. These offshore service providers offer numerous services like high-risk merchant services, low-risk merchant services, credit card processing, e-check solutions, and much more.

On the other hand, if you decide to open your offshore bank account yourself you need to understand which bank will be suitable and efficient for your specific needs. You will need to visit the bank yourself and finish the entire procedure abiding by all the rules and regulations.

Now, to set up an offshore corporate account you need to present some documents which are as follows: 

A notarized copy of passport or any other form of photo identification

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Any form of address proof such as bank statement or notarized copy of utility bill

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A bank reference letter which indicates for how many years you have been an upstanding customer to the bank.

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Some banks even require a professional reference. It is a letter from a trusted or reputed professional, lawyer confirming that you are of good character

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You also need to present a full set of notarized company documents and detailed business plans, estimate turnover, competition analysis, and other such details.

You can also open an offshore personal account by showing the first four documents and a proof of your income. Lastly, if you set up an offshore corporate account for your offshore company using a service provider, they can efficiently handle the whole procedure and will also take care of company documents.

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