The private interest foundation
The private interest foundation is a legal entity with autonomy and its own legal existence and capacity to be subject to rights, and obligations. It is constituted for private and specific purposes or objectives such as the organization, conservation and protection of its patrimony, planning estate, management and orderly disposal of assets even with hereditary purposes and effects. It can be subject of bank relationships and even if The Private Interest Foundations shall not pursue lucrative ends, but it may engage in mercantile (commercial) activities in a non-usual manner.
It is regulated by Law 25 of June 1st, 1995 and the Executive Decree No. 417 of August 8th, 1995.
The Private Interest Foundations shall be governed by the:
- Foundation Charter
- By-Laws,
- as well, by the provisions of this Law and others legal or regulatory provisions applicable thereto.
The members of the foundation are the Founder (s), Foundation Council, Protector or Supervisory organs, Beneficiary, beneficiaries., Others ( Resident agent, Executor)
It is important to mention that the assets of the foundation shall constitute an estate separate from the founder’s personal assets for all legal purposes, and with the entity, all the assets included under the name of the foundation, will not require to go through a hereditary process in the Civil Courts in Panama.
Also, very important to mention that the foundation of private interest is different in nature and characteristics to ONG (in Panama known as OSFL), and is also different to the Corporation, so you must understand these legal entities if you want to reside or you are living in Panama to chose the best option according to your needs and objectives.
We will have a talk about this topic in Boquete’s Library and also in Volcan, if you are interested in participating, below is my contact information.
Asesoría Legal Panamá
Cindy Murillo
+63719372
cindy.murillo@gmail.com
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