The Panama Foundation is a popular choice for managing crypto projects. This article provides essential details on establishing and managing a Panama Foundation.

Onboarding

Setting up a Panama Foundation involves KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures as part of the due diligence process. Supervisors and directors can be either individuals or legal entities.

Company Directors

To establish a Foundation in Panama, you need three directors, who can also be corporate entities. If you don't have enough directors, Otonomos can provide Nominee Directors.

For individual directors, the following documents are required:

• Certified Copy of Passport

• Certified Proof of Address

Additional KYC requirements include:

• Second certified copy of ID

• Professional Reference Letter

• Bank Reference Letter

• Source of Wealth Declaration

For corporate directors, the following documents are required:

• Certified copy of the Certificate of Incorporation or equivalent

• Certified copy of the Register of Directors

• Certified copy of the Register of Shareholders

• Certified copy of valid passports for the Directors

• Certified copy of a recent utility bill (issued within the last three months) for the Directors

• Certified copy of valid passports for Shareholders holding 10% or more shares

• Certified copy of a recent utility bill (issued within the last three months) for Shareholders holding 10% or more shares

Learn more about the additional KYC requirements here.

Renewals

Panama Foundations have two renewal periods each year:

• 1st Semester: Foundations registered between January and June need to renew by July 15th.

• 2nd Semester: Foundations registered between July and December need to renew by January 15th.

To maintain your Panama Foundation’s good standing, ensure timely renewal payments to avoid penalties.

Entity Management

It is mandatory to file yearly financial statements in Panama. These statements must be submitted with the renewal of your entity to ensure the renewal process is completed smoothly.

Closing Down the Entity

Company Dissolution: To properly close down the entity, you should file for company dissolution. This ensures that the entity is shut down correctly without any loose ends.

Company Strike Off: Alternatively, an entity can be struck off if it fails to pay renewal fees or submit the required statements. This process is less formal and occurs when the entity does not meet compliance requirements.