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Belize IBC

OVERVIEW

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Belize is situated on the eastern coast of Central America and has the second-highest per capita income in the Central America. The economy of the country depends on tourism, agriculture and services sector. The offshore sector in Belize contributes a major portion to its GDP.

 

Belize is highly appreciated for its efforts in changing its acts and continuing to develop its business-friendly environment for foreign investments. On a good note, Belize has been removed from the EU list of non-cooperative tax jurisdictions thanks to many of its important reforms regarding the tax regime for International Business Companies. The banking system in Belize follows a two-tiered regime that offers a diversity of services for various types of depositors and different levels of demand.

 

Belize is a well-known offshore jurisdiction for its privacy policies, tax advantages for non-residents and its full tax exemption for its domiciled International Companies.

 

TAXATION

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Belize International Business Companies (IBCs) doing business within Belize are subject to Belizean income tax and stamp duty and are required to file income tax return. Belize IBCs whose income is derived outside of Belize shall not be liable for payment of income tax in Belize. Capital gains, dividends, and interests received may be exempt from taxation. Payments to non-residents may be exempt from withholding taxes.

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IBC NAME RESTRICTIONS

 

  • Belize IBC must contain any of the words “Limited”, “Corporation”, “Incorporated”, "Société Anonyme" or "Sociedad Anonima" or "Aktiengesellschaft" or the abbreviations "Ltd.", "Corp.", "Inc." or "S.A." or "A.S." or "A.G." A company may use and may be legally designated by either the full or the abbreviated form of these limited liability designations.

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  • A Belize IBC may not be registered under a name that is identical to the name of an existing Belize company. The registration of a new IBC in Belize may also be refused if its name so nearly resembles the name of another company as to be calculated to deceive, except where the other company gives its express consent.

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  • A Belize IBC may not register the name containing the words "Assurance", "Bank", "Insurance" or "Trust", or any or their derivatives or cognate expressions, unless it is specifically licensed in Belize to carry on the respective business or activities, as designated by such word.

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  • The name of a Belize IBC may not contain the words "Building Society", "Chamber of Commerce", "Chartered", "Cooperative", "Imperial", "Municipal", "Royal", or any word conveying a similar meaning, or any other word that, in the opinion of the Registrar, suggests or is calculated to suggest the patronage of Her Majesty Queen of England or that of a member of the British Royal Family.

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ECONOMIC SUBSTANCE REQUIREMENTS

 

All entities that fall within the scope of the Economic Substance Act are called “Included Entity”. According to the Act, “Included Entity” comprises of:

 

  1. Banking business

  2. Insurance business

  3. Fund management business

  4. Finance and leasing business

  5. Headquarters business

  6. Distribution and service center business

  7. Shipping business

  8. Holding company, engaged, or where one or more of its subsidiaries is engaged in one of the activities listed above

 

It should be noted that Belize IBCs that is controlled or managed outside Belize and is not tax resident in Belize are not required to comply with the Economic Substance and are called as “non-included entity”.

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IBCs carrying out the activities listed above shall have:

 

  1. Core Income Generating Activities (CIGA) and a substantial economic presence in Belize.

  2. Aa amount of annual operating expenditure in Belize

  3. Number of qualified full-time employees

  4. Physical office(s)

 

An IBC may however, outsource its CIGA to a licensed managing agent in Belize. Substantial economic presence in Belize may be determined by the followings:

 

  1. Adequate meetings of directors in Belize

  2. Taking strategic decisions in directors meeting in Belize

  3. Physical records being kept in Belize

 

All IBCs regardless of included-entity or non-included entity must report in prescribed forms to the competent authority within nine months from the end of a fiscal year.

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The above information is only a brief and it is essential to consult the rules and laws regarding economic substance in Belize for a more comprehensive understanding.

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COMMON USES OF BELIZE IBCS

 

  • Holding of assets and properties

  • Assets protection, due to anti-confiscation provisions enshrined in the law

  • International trading

  • Holding of shares in companies in other jurisdictions

  • Holding of bank accounts, investment portfolios and other financial instruments

  • Own apartments, houses, buildings and any other movable or immovable property or goods.

  • Many more activities (consultancy, IT, marketing, etc)

 

BENEFITS OF BELIZE IBCS

  • Foreign languages names allowed

  • Corporate directors allowed and no requirement for resident directors

  • Low registration and annual fees

  • No restrictions concerning nationality and domicile of the directors, officers, and shareholders.

  • Prompt and efficient incorporation due to a well-managed and organized IBC Registry Office

 

Premier Global Fiduciary Services DMCC is here to advise you how to best set up a Belize through our associates. The solutions we provide in collaboration with our close Belize associates are adapted to your needs and are smartly structured. If you are interested in setting up a Belize IBC or guidance and additional information, please feel free to contact us at contact@premier-dudai.com or call us on +97144696707 to explore our services.

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