Law N° 25 of June 12, 1995 governs the Private Interest Foundations. According to this Law, one or more natural or juridical person, by themselves or through other parties, may create a Private Interest Foundation. Likewise, the law provides that such foundation may be constituted by trustees or by natural or juridical persons.

The law provides that a “Certificate of Incorporation” be recorded in the Public Registry of Panama, which must include, among other information:

Name: “The name of the foundation stated in any language with characters of the Latin alphabet, which must not the same or similar to the name of other pre-existing foundation in the Republic of Panama. The name must include the word foundation to distinguish it from other natural or juridical person of other nature”.

Patrimony: “The initial patrimony of the foundation, stated in any legal tender, that in no case will be less than the equivalent to US$10,000.00.”

Purposes of the Foundation: The Private Interest Foundations, such as it is set forth by Article 3 of the Law, may pursuit profits, nevertheless the Foundations may carry out business activities in the normal manner, provided that the proceeds arising from such activities be exclusively devoted to the foundation.

The Private Interest Foundations have been created as a par excellence legal instrument, aimed to protect the personal patrimony. For further information regarding the benefits that may be obtained through this novel legal figure, please, do not hesitate to ask for advice or make any comments by contacting us at the window “Contact Us”, so that we quickly and effectively may solve your concerns.