Both Corporations and Private Interest Foundations offer secure asset protection for your personal wealth.

A Private Interest Foundations however cannot enter into profitable activities ( thus limiting the areas which it can operate, whereas a Corporation can engage in commercial activities of any kind as long as such activities are carried outside Panama.

A Private Interest Foundations does not have owners or shareholders or shares as a Corporation has, therefore ownership is impossible and no share certificates are issued. Instead Beneficiaries are established in the Regulations, in order to benefit from the Foundation.

A Private Interest Foundation can earn passive income, by investing in stocks, real estate, and other business such as a Panama Corporation. This is done by setting up the Foundation to own a Corporation, which can engage in any business activity. This will also give you an extra and powerful level of asset protection. However if you are only looking to protecting and investing assets you already have, a Corporation is not required.