Private Interest Foundations, in Panama are legal entities that are created in order to protect the interests of its beneficiaries. Private Interest Foundations in Panama are legal entities governed by law 25 of 12 June 1995. They are formed by a Founder by establishing a patrimony to meet specific objectives are set forth in a document called Founding Act. To ensure the achievement of the aims of the foundation, a Council of Foundation, which serves as a kind of board of directors, and is designated in the Founding Act is created; foundations have no owners but only beneficiaries: those people or organizations for whose benefit the foundation is created.
Private Interest Foundations combine the advantages of companies and trusts in a legal instrument. Through a Private Interest Foundation you can divide all or part of its assets in a confidential and secure manner. The Private Interest Foundations work with two types of documents: one, the Founding Act, which is public and serves to create the legal entity, and the other, Regulation, which is private and confidential and details the benefits, assets and their distribution among the beneficiaries.