RSSThe PIF cannot technically engage in business activities. But the beneficial owner of the shares of onshore or offshore companies is engaged in business activities. The PIF can engage in any activity which will increase the value of its assets. It can own bank accounts, securities, brokerage accounts and real estate holdings. There are no ownership shares in a PIF and the founder does not own the foundation. Thereby he benefits in areas of Tax reporting and asset protection.
Charter Requirements for PIF in Panama:
1. The name of the foundation can be expressed in any language. But it must contain the term ‘foundation’ as part of the title. This indicates that the entity is a foundation structure.
2. The foundation can be funded in any currency. The initial patrimony or the amount used to fund the foundation cannot be less than the equivalent of US$ 10,000.00. The initial funding or contribution does not have to be done at the time of creating the foundation. Apart from the fact that the foundation is funded with ten thousand dollars there are no public records of the foundation assets.
3. The foundation structure must have a minimum of three council members who are natural persons or a juridical person, such as a corporation that has three directors. The names and addresses of the council members is public record.
4. The purpose of creating a Foundation may be anything within the ambit of the law. The foundation may be created for reasons such as the maintenance and welfare of minor children, a college tuition or scholarship funding for any person, the maintenance and welfare of the founder upon his or her retirement , the maintenance of a building or property, the benefit of any charitable organization or foundation, within the law.
5. The foundation structure must name beneficiaries as in the case of a trust document. It must also name the basis of distribution entitlement for each beneficiary. The foundation charter must indicate the manner in which any assets are to be disposed of upon its dissolution. The client or the founder of the foundation may be named as a beneficiary.
6. Any desired jurisdiction or location can be the domicile of the foundation. IMT suggests that Panama or any other Civil law jurisdiction be used.
7. The foundation must have a local Resident agent. A duly authorized lawyer or law firm, with a physical presence in Panama may be the Local Resident Agent.
8. According to the client’s desire, the foundation can have a specified life span.
Source Courtesy : IMTS-INC.NET
