FIP

• Establishment of the legal name of your entity.
• Being subject of law that will allow opening bank accounts, acquiring assets, signing contracts, establishing the legal platform for the protection of assets, among others.
• Establishment of the figure of the Founder, the beneficiaries of the foundation and a legal Foundational Council that manages and cares for the assets of the foundation, with its powers and responsibilities, as a measure of internal legal transparency of its actions in favor of the founder and/or or their beneficiaries.
• Legal establishment of a Protector or Guardian who will ensure compliance with the purposes of the foundation.
• The assets of the foundation will constitute a patrimony separate from the personal assets of the founder and the beneficiaries.
• Are exempt in Panama from any tax, contribution or tribute of any kind or denomination, as well as the acts of transfer, transmission or encumbrance of the assets of the foundation and the income from said assets or any other act on them, only when the assets are located abroad, when the money is deposited by persons whose income is not from a Panamanian source, or is not taxable in Panama for any reason

• A minimum of three (3) natural and/or legal persons, Panamanian and/or foreign that will form the members of the first Foundation Council.
• Have a name that is not already in use by another legal entity in Panama.
• Have a place that can be the domicile of the entity.
• Define what the objective of the foundation will be.
• Define who will act as the Founder, the Protector and the Beneficiaries of the foundation .

With this information you can have a meeting with the lawyer to start the next steps, consisting of the drafting of the Founding Act, its formalization in a Notary and its subsequent presentation in the Public Registry. Once registered, the Unique Taxpayer Registry (RUC) can be obtained and the Foundation Regulations can be managed in the same way, as a private legal instrument of the Foundation, the founder and its beneficiaries.

• Comply with the due diligence update.
• Not pursue a profit and therefore not carry out commercial activities (with some exceptions).
• Pay a single first registration fee and the annual fees.
• Manage the assets of the foundation, in accordance with the Founding Act or its regulations.
• Inform the beneficiaries of the foundation of its patrimonial situation, as established in the founding act or its regulations.
• Deliver to the beneficiaries of the foundation the assets or resources established in their favor by the Founding Act or its regulations.
• Carry out the acts or contracts that are allowed to the foundation by the Law and other legal or regulatory provisions.
• The Foundation Council must render accounts of its management to the beneficiaries and, where appropriate, to the supervisory body.
• Have a minute book and the necessary accounting books or records.

In order for your Foundation to have a Regulation, the prior legal constitution of the Private Interest Foundation before the Public Registry will be required and it must contain all the private information that is not mandatory by Law to have in the Foundation Act for its administration. Therefore, this Regulation should not be filed in the Public Registry.

In this sense, said Regulation will contain the precise data of the beneficiaries, their profit percentages, responsibilities of all the organizations and people that administer the foundation, the legal assumptions that must be met to materialize benefits and also the entire private structure that allows the assets of the foundation are maintained.

In a general scenario, the person is the owner of assets, money and rights and makes a will so that they go through a civil succession process that lasts more than a year to their heirs.

If these assets, money and rights were in the name of the foundation and the person who acts as the founder dies, they pass to the benefit of the "heirs" categorized as post-mortem beneficiaries or second beneficiaries automatically with the mere formality of notification of the Foundation Council, without ceasing the assets to be protected in the Foundation against risks and legal threats of these. The confidentiality and reserve of the identity of the beneficiaries is even preserved, a situation that would be more public if it were processed within a civil succession process.