Belize – Ready Made Shelf Companies – Company Formation

Belize

Belize is an independent, democratic country situated in the Yucatán Peninsula in Central America, by the Caribbean Sea. The country, a member of the Commonwealth, is a constitutional monarchy with British Queen Elisabeth II as the head of state, represented by the Governor-General appointed by her. The official language is English, but Spanish is ubiquitous as well.

Belize is one of the most welcoming countries in the world for foreign investors, not only because of the tax system but also super-quick company registration and minimum red tape.

Meeting only few requirements, International Business Company (IBC) owners do not pay any taxes. There are also no reporting obligations – to keep accounting books and prepare annual financial statements. There are also no requirements with regard to the place of keeping company books, including transaction register.

Belize is also an ideal place for clients who value privacy, all this thanks to the commonplace institution of trust, owing to which it is possible to use the services of nominee directors and nominee shareholders, whose names appear in the business register, protecting the privacy of the beneficiary owner.

Belize is one of the safest and most discreet offshore jurisdictions, where bank and fiscal secrecy is still fully respected.

Business activity in Belize is regulated by Company Law and International Company Law. Company law in Belize is based on common law principles, taken from the British model, prevailing in most Anglo-Saxon countries. The system is regarded as one of the most investor-friendly, especially for foreign investors.

To establish an International Business Company (IBC) you only need one person who may be both the shareholder and the director. This may be a physical as well as a legal person. There are no restrictions with regard to non-residents – everyone may establish an IBC in Belize.

There are no requirements with regard to the minimum share capital either, and share capital may be paid in any currency, although the most common practice is payment in US dollars.

Legal conditions concerning IBCs are very flexible, thanks to which the inner corporate structure of an International Business Company in Belize may be built according to the widest array of clients’ needs and expectations. In the most basic aspect, it may be constructed to meet the requirements of a one-person business. It may also include a complex structure with multiple shareholders and intricate internal audit and management systems.

IBC may issue registered or bearer shares. Shares may come with voting rights, no voting rights, and also one or more votes per share. Shares may give voting rights on all matters, or only on certain issues or in certain circumstances, which give voting rights when held by people that meet certain requirements. Company shares do not have to be issued at par value.

Shareholders’ meetings and management board meetings may take place anywhere in the world and at any time. They may be conducted through plenipotentiaries and over the phone or any other messaging tools, and resolutions of both shareholders and the board may be adopted without being formally convened.

Even though tax rates for Belize residents are quite high, the country offers tax exemption for International Business Companies operating based on the International Business Company Act 1990. IBC is not subject to taxation on activity conducted outside the territory of Belize, including income tax, dividend tax, capital gains tax, as well as stamp duties. It should be noted that tax on share sales is 0%. The only obligatory thing is the annual licence fee (a fixed government license fee instead of taxes) in the amount of 100 USD (provided share capital (authorised capital) does not exceed 20 000 USD), which needs to be paid on time under pain of removal from the business register. The fee is very competitive in comparison with other offshore countries.

Belize is a country with stable economic situation. The main goals of the government’s economic policy are strengthening currency reserves, fiscal consolidation, stimulating economic growth, supporting development of small and middle-sized businesses, and also reduction of unemployment by attracting foreign investment. The main economy areas are export of crude oil, shrimp, citrus fruit, sugar, and of course tourism. Services, manufacturing and energy sectors are of significant importance to the economy.

Due to its geographical location in Central America and historic relations with the Caribbean, Belize constitutes a bridge between the regions. Belize is a member of the Central American Integration System (SICA), the Caribbean Community (CARICOM), thanks to which it is a participant of the Caribbean Single Market and Economy (CSME). What is important for foreign trade is the fact that Belize has preferential access to American markets (due to the Caribbean Basin Initiative) and an Economic Partnership Agreement (EPA) between CARIFORUM and the European Union.

Belize is a constitutional monarchy. The current constitution was introduced in 1981, when Belize gained its independence from the United Kingdom. The legislative power is held by a two-house National Assembly – House of Representatives and the Senate. The executive power is held by the government, chaired by Prime Minister. From declaring its independence, Belize has stable, democratic government and, contrary to some other countries of the region, is not involved in any international conflicts. Belize government maintains fixed exchange rate policy, currency reserves are kept in American dollars and the official currency is BZD.

Belize is not only a tax haven, but also a banking haven. Bank secrecy is protected by legal provisions. In Belize, every person linked with the banking sector breaching bank secrecy law risks imprisonment. Most importantly, however, banks are characterised by high financial liquidity and the funds deposited in the accounts are safe. What is also important, director’s presence is not required to open a bank account. Bank activity in Belize is regulated by the Central Bank pursuant to the Banking Act.

What also should be stressed is the fact that despite respecting bank and tax secrecy, from 2010 Belize is not in the „black list” and that is exactly because banks here are extremely safe and have their own safety provisions with regard to money laundering.

Banks in Belize:

Atlantic Bank Limited, The Belize Bank Limited, Heritage Bank Limited, National Bank of Belize Limited, Scotiabank (Belize) Limited