A potential concern of entrepreneurs and business owners and fortunes is the organization of the economic operations of their companies and the protection of their assets. This goes hand in hand with the disposition of those assets after the death of their owner and how to ensure the stability and economic security of their families.
In many countries, there is still no specific regulation for the administration of fortunes or patrimonies. Even so, there are professional offices that, through Offshore services, organize the economic operations of the companies, having as a platform the jurisdiction of Panama. The opening of bank accounts, financing of transactions, tax planning and administration services stand out in that portfolio.
Offshore services include the use of Panamanian legal entities such as Corporations or Public Limited Companies and Private Interest Foundations. Through these figures, Mutual Funds are constituted; re-invoicing operations are executed, taking advantage of the tremendous operational and fiscal benefits offered by the Republic of Panama as Offshore Operations Center.
About Private Interest Foundations, I believe that there is no similar figure in other jurisdictions. The most graphic way to understand them is to imagine a hybrid between a corporation and a trust. The most similar statistics are the Private Interest Foundations of Switzerland, the Principality of Liechtenstein and Luxembourg. Panamanian legislation designed these legal entities with the intention of creating a modern, flexible, accessible, useful and safe tool for estate planning for people from different parts of the world.
This figure is created legally to administer an estate and that meets the objectives for which it was designed for the benefit of a person, family or general group of individuals. Once the foundation is created and duly registered, it acquires independent legal status, but unlike a Corporate Society, it has no partners, participants or shareholders, but a Founder, and is not allowed to engage in regular or continuous trade but only sporadically.
They are ideal to become Holdings of other Panamanian or foreign juridical persons, by becoming holders of the shareholdings of those companies. They are instrumental in avoiding waste, mishandling, usurpations and finally any act that may affect the heritage of the beneficiaries by third parties or the recipients themselves, as the trust has the power to establish the disposition of the beneficiaries. Goods, participation in other companies and patrimony in general even in a period long after the death of the Founder.
An excellent corporate scheme with the participation of the Foundations and Corporations can be beneficial for adequate fiscal planning, without incurring in any action that violates the laws of the jurisdictions of the countries of origin of the companies.