Belize IBC Offshore Company Formation
Overview of a Belize International Business Company (IBC)
A Belize based International Business Company (IBC) offers prospective individual and corporations an ideal environment to form an offshore company.
Belize enacted the Companies Act in 1990 that created the legal structure for the offshore sector, which was further amended in 2000 to provide for added layers of flexibility and confidentiality. Since then its has become one of the top destinations for offshore business formations due to its strict confidentiality and non-disclosure laws, ease of procedures, and prominent location.
Belize is a paradise for potential customers not only because of its tropical location and vibrant culture, but also because of its stable political and economic systems, supportive Common law legal framework, and its highly connected infrastructure.
The country has stemmed off numerous attempts from the US to sign mutually shared information treaties. Despite such pressures, Belize responded firmly against such treaties and remains committed against the disclosure of offshore banking, financial and tax information for its non-residents customers.
Belize retains complete sovereignty over its offshore jurisdiction, thus it has some of the most flexible corporate requirements and supportive legal framework in the world, making it one of the most secure offshore destinations.
With low start-up costs, complete confidentiality and multiple layers of anonymity in a stable and low risk environment, its no wonder that Belize is one of the pioneers of offshore business formations.
Top Uses of a Belize IBC
Belize has very stringent confidentiality laws, greatly ensuring the privacy and the continuity of the country’s offshore banking sector. An offshore company can be made for any legal purpose and for any legal activity that are within the law and the company’s charter.
Some of most popular uses of a Belize IBC are, but not limited to:
- Asset protection Company
- Real Estate Holding Company
- Tax planning
- International financing
- Assent Protection
- Investment Company
- Financial Management
- General Commercial Trading
However, there are several restrictions that are placed on IBCs. Offshore companies cannot:
- Carry on business within Belize
- Conduct activities in real estate
- Hold shares, stock, debt obligation or other securities in a local company
- Issue shares, stock, debt obligation or other securities to any natural person in Belize.
Advantages of a Belize IBC
Forming an International Business Company (IBC) in Belize has many advantages including, but not limited to:
- The ability to conduct business without using your name
- Avoid paying taxes
- Asset protection
- Maintenance of privacy
- Flexible currency holdings
- Fast IBC Registry
- No reporting or accounting requirements
- No foreign information-exchange agreements on any grounds
- Client confidentiality
- One of the most secure and confidential offshore jurisdiction in the world
- Robust and diversified national economy
- Only country in Central America having English as its official language
- Exemption from taxes on all income
- Exemption from taxes on all dividends
- No currency restrictions
- Exemption from Stamp Duty
- Exemption from taxes on all interests, rent, royalties, and compensations
- Exemption from taxes on capital gains on shares, debt obligations and other securities
Key Corporate Features [Chart] of a Belize IBC
|Belize IBC||Corporate Details|
|Type of Entity||Limited by Shares|
|Type of Law||English Common Law|
|Governed by||International Business Companies Act of 1990|
|Registered Office in Belize||Yes|
|Shelf company availability||Yes|
|Our time to establish a new company||One business day|
|Minimum government fees (excluding taxation)||USD $100|
|Access to Double Taxation Treaties||Yes|
|Share capital or equivalent|
|Standard currency||US Dollar
Belize dollar (Official currency);
fixed to USD $1 = $2 Belize
|Minimum paid up||No minimum|
|Usual authorized||Any amount (USD $50,000 optimal)|
|Bearer shares allowed||Yes|
|No par value shares allowed||Yes|
|Publicly accessible records||No|
|Location of meetings||Anywhere|
|Corporate directorship allowed||Yes|
|Publicly accessible records||No|
|Corporate shareholder allowed||Yes|
|Location of meetings||Anywhere|
|Local or qualified||No|
|Requirements to prepare||No
|Requirements to file accounts||No|
|Publicly accessible accounts||No|
|Recurring Government Costs|
|Minimum Annual Tax / License Fee||USD $100|
|Annual Return Filing Fee||USD $100-$1000 depending on the amount of authorized capital
(*See Corporate Details section below for details)
|Requirement to file annual return||No|
|Migration of domicile permitted||Yes|
Requirements for Incorporation of a Belize IBC
There are few requirements needed to establish a Belize IBC.
- Filing requirements are limited to a Memorandum, Articles of Association, and name an address of registered agent
- A Registered Agent will deliver the Memorandum of Association and Articles of Association to the Registry together with the appropriate fee
- Any individual or group of individuals may incorporate a company·
Taxation of a Belize IBC
An IBC based in Belize is not required to pay any tax on its operations outside the country. Tax exemption includes, but is not limited to:
- Taxes on all income
- Taxes on all dividends
- Taxes on capital gains
- Taxes on all royalties and compensations;
- And taxes on all interests and rent.
There is a Business Tax on any business or enterprise that earns more than $75,000 a year; however, this tax does not apply to income earned outside the country, and therefore does not include any activities or operations of an IBC (due to the restrictions of carrying out business outside of the country).
Corporate Details of a Belize IBC
Security and Confidentiality
A Belize IBC is allowed to have nominee directors and shareholders to give another layer of anonymity, the details of which are not part of public record. A Belize IBC is protected from any expropriation orders by any foreign governments. Additionally, any changes of directors or shareholders are not required by Registry.
Liability is limited to the amount of the nominal value of the shares
Usual Authorized Share Capital
An IBC with an authorized share capital of up to US$50,000 must pay a licensing fee of US$100 per year. For any authorized share capital of more than US$50,000, the licensing fees increase to US$1,000 per year.
Financial Statements Required
A Belize IBC is not required to file financial statements
The appointment of a company secretary is not mandatory
A Belize IBC must have a minimum of (1) one Director, which may be an individual or a corporate entity
There must be one (1) shareholder, either and individual or a corporate body
Powers of the Company
Companies incorporated in Belize have equal power as that of a natural person.
Double Taxation Treaties
No double taxation treaties with any other country
Registered Office Required
Every Belize IBC must have a registered office
There are no mandatory local presence requirements
Language of Name
English is the official language in Belize, though it is possible to incorporate an IBC in any language
Capital may be expressed in any currency
Meetings of directors or shareholders may take place anywhere in the world by proxy
Filing and Auditing of Accounts
There are no requirements to file accounts or to have accounts audited. Public filing is limited to certificate of incorporation, memorandum and articles of association, registered office and name and address of registered agent.
Belize based offshore IBC must not engage with any business activities within Belize
The name of a Belize IBC may not contain the words “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Imperial”, “Municipal”, “Royal”, or any word that suggests the patronage of Her Majesty the Queen of England or of a member of the British Royal Family.
Double Tax Conventions and TIEA’s
Belize has Double Taxation agreements (DTC’s) with: Antigua & Barbuda, Austria, Barbados, Dominica, Grenada, Guyana, Jamaica, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & the Grenadines, Trinidad & Tobago, and the United Kingdom.
Additionally, with the aim of being removed from the OECD grey list, like many other offshore financial centers in the Caribbean, Belize was pressured into signing TIEA’s (Tax Information Exchange Agreements) with: Australia, Belgium, Denmark, Faroe Islands, Finland, France, Greenland, Iceland, India, Ireland, Mexico, Netherlands, Norway, Poland, Portugal, South Africa, Sweden, and United Kingdom.
There is a one-time registration payment of US$100. There is also an annual renewal fee:
- An IBC with an authorized share capital up to US$50,000 must pay a licensing fee of US$100 per year
- An IBC with an authorized share capital US$50,000 or more must pay a licensing fee of US$1,000 per year
- An IBC with some or all of its shares of no par value, must pay a licensing fee of US$350 per year.
Belize IBC Company Formation
Products from Sovereign
Basic Belize IBC | USD $1,250
- Certificate of Incorporation
- Certified copy of the Memorandum & Articles of Association
- Registered office & agent fee for the first year
- Government fees for the first year
- Company Secretarial Maintenance for the first year
- Certificate of Endorsement
- Articles of Incorporation
- Transfer of Subscription Rights
- Share Certificate(s)
- Initial corporate minutes resolution
- Register of Directors
- Register of Members
- Appointment of First Directors
- Consent Actions of the Board of Directors
- Company Seal