An exclusive association which is a distinct form of lawful body, the Panama Foundation functions like a board trustee that operates similar to any business company. With such, there are many advantages such as offering total secrecy, no requirement in revealing beneficiaries, complete exemption from taxation and no mandate to file yearly returns, among the others.
The Panama Foundation is permitted to execute business in whatever monetary denomination it will choose. The founders, members and protectors may belong to any races that come from various countries. Its accounting books may even be hidden anywhere in the globe. However, its assets are not allowed to be utilized to gratify the founders’ or the beneficiaries’ pecuniary liabilities.
There is a law on inheritance in the Panama Foundation that touches on the initiators’ or recipients’ residence is not in contention to the foundation nor may it any way affect its legitimacy as well as hinder its objectives to be carried out. Aside from all those there are constitutional obligations as it is a unit managed by either a private or public individual.
By being transformed into a corporation, the Panama Foundation is registered as an Institution Charter at the Government Registry that consists of its name and address as well as starting capital which should be lower than the equivalent of US$10, 000, persons running need not be those that belong to the commercial world, resident agent must be a practicing lawyer, its set of objectives must be reasonable and method of selecting the recipients must have reservation of the right to alter the charter.
Those that belong to the assembly may either be natural or juridical persons of whatever citizenship and need not be exactly living in the country. They also need to understand that their responsibilities are to administer the resources in accordance with its regulations, carrying out contracts that are deemed significant to fulfill the goals, inform the beneficiaries of its current pecuniary status and pass over the properties settled in favor of its rules, among the others.
As for its offshore corporation, it is actually a body identified by the law as a person other than that has a limited liability. It is a corporation who has the option to sell its shares with the right to raise a legal complaint as well as have the perpetual existence. It is used to operate businesses together issues stocks, guarantee obligations, hire laborers, purchase goods, avail services, maintain checking and save accounts.
The Articles of Corporations is the written account that establishes the basic information such as the name, share framework and intention of the entity. Its by- laws or also referred to as jurisdictions are those that are followed by everyone that are under the units. It is adopted by the Board of Directors down to its subordinates.