A Panama Company VS a Panama Foundation

Panama company and Panama Foundation are regarded as high quality asset protection mediums. Panama Foundations has been registered in the Republic of Panama from 1995 whilst Panama Company has been registered from 1927. The Panama Company is the most registered business company in Panama and it has helped to build Panama Republic as a respected offshore jurisdiction that it is today.

Second citizenship has provided a reliable solution to investors and families seeking alternative, equally safe means of wealth preservation. Approved agents in the islands of Dominica under the Dominica Economic Citizenship Program and St. Kitts under the St. Kitts Citizenship-by-Investment https://www.stkittscitizenship.com/ program carry these services through. Second passport programs like these allow foreign nationals to acquire a second home which they can be used to their full benefit as citizens. Though not commonly referred to as a means of asset protection, dual citizenship can serve this purpose. Anyone who has a second domicile, capable of buying real estate, earning an income and opening bank accounts can manage their affairs accordingly. Second citizenship in a country with lower income tax rates and a friendlier climate for businesses encourages financial gain. Second passports to countries with visa free travel arrangements also promote free movement. These individuals get privacy and can allow accounts to grow undisturbed.

Although the Panama Company has been used for asset protection for many decades the fairly new Panama Foundation is considered to be a better asset protection tool that the corporation. A Panama Foundation does not belong to anyone. As a legal a foundation stands on its own and has possession of all the assets within it. This being the case the assets in a foundation therefore cannot be taken away to repay the debts or obligation of the founder or beneficiaries. The assets in a Panama Foundation are protected from civil litigations or mishaps on the job etc. A Panama Company even with nominee owners the assets can be linked to an individual.

A Panamanian Foundation has another very important advantage over a Panama Company. The Panama Foundation is often described as a cross between a will, trust and corporation. The Panama Foundation can serve as a will. A foundation Charter regulated the foundation and its assets. This instrument dictates how and when the foundation’s assets are to be disbursed. In this way the inheritances can be protected and forced heirship can be avoided.

Panama Corporation and Panama Corporation can both own assets, bank accounts etc. A Panama Corporation can conduct business operations anywhere in the world including the Republic of Panama. A Panama Foundation is restricted by legislation to conduct habitual business operations. The laws of Panama however permits foundations to own stock, bonds and shares on other corporations and business entities on the condition that it is in the interest of the beneficiaries of the foundation. This therefore means that a Panama Foundation can own a corporation maximizing asset protection since a Panama Foundation has no owners. This is especially advantageous to foreign citizens who are taxed by their government for owning shares in foreign corporations.

A Panama Foundation and a Panama Corporation have no financial reporting to prepare for the Government of the Republic of Panama. All financial reports are prepared for the members of the business and can be kept at a location convenient to them. Panama Corporations and Panamanian Foundations pay no local taxes if their assets /capital are generated outside of the jurisdiction. Panama Foundation and Panama Corporation will pay local taxes if they own real estate or conduct business in Panama. Both are exempted from Stamp Duty on transfers made on behalf of the two entities.

A Panama Foundation and a Panama Corporation have many good advantages. Incorporated in tax haven Panama they are easy to maintain and incorporate. Panama Corporations and Panama Foundation only pay a very inexpensive annual renewal fee to the Government of Panama.