Recommended Structure
The structure that can be used for maximum anonymity, privacy and confidentiality, may consist of a Private Interest Foundation holding ownership of an International Business Corporation. The corporation holds all major assets, such as bank accounts, brokerage accounts, real estate, etc., and the foundation acts as a holding company to the corporation.
Like an incorporated company, using such a structure to own bank or investment accounts, of course, offers some important tax benefits as well. However, it is important to note that a Foundation is not an incorporated company and cannot engage in a for profit business the way an incorporated company could. The Foundation could of course act as the 100% owner of an incorporated company, offering investors the opportunity to keep company directorship or stock out of their name.
In addition, some clients consider that the foundation can be the shareholder of an incorporated company, thus allowing for profits to be "distributed" out of the company and into the foundation.
The company incorporated in Panama would be a structure that can be used to carry on a business enterprise. Actually, an incorporated company can be also an important tool in tax planning or asset protection as well, depending upon the goals and needs of the client.
For some clients that may wish to use nominees and feel comfortable with this arrangement, one company incorporated in Panama may be sufficient. Please keep in mind that providing company profits are generated outside of Panama, there is zero corporate tax liability for the company. The only exception to this is interest generated from bank account deposits, which is 100% tax free.
The best decision of the problem is not to maintain any accounts in your name directly and do not have yourself listed as a shareholder or director in the public record. This is accomplished by using the Foundation structure in concern with an incorporated company.
The ways of arrangement
Some clients may prefer to act as the President of the Foundation council and use nominees for incorporated company. Other clients do not wish their name on anything, and may prefer to use nominees for all functions, with a private legal power of attorney given directly to the client.
It is not completely a negative to act as the president of a Foundation, because it is a private non-profit entity. This can be compared to acting as the President of your Condominium Association, local Chamber of Commerce, or a kind of other non-profit association. The term "non-profit' simply means that one cannot directly operate the Foundation in the same capacity as a company. However, the legislation of Panama ways that a Foundation may do anything permissible under law to increase the assets of the Foundation.
