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There are over
25,000 international business companies registered in Belize,
many of which have been formed to hold legal title to real
property in jurisdictions outside Belize or to create
securities trading accounts in Europe, Canada or the United
States. One of the major advantages of the Belizean IBC is the
exemption from income tax, capital gains or transaction tax.
The jurisdiction is highly rated for its banking secrecy;
corporations do not have to disclose beneficial ownership;,
and Trusts need not disclose the names of their beneficiaries.
The regulatory restrictions are minimal and foreign investment
is actively encouraged and facilitated by the Commercial Free
Zone Act 1994 which provides for the development of designated
commercial free Zones and Export Processing Zones which allow
trading in areas such as manufacturing, processing, and the
distribution of goods and services. These zones are exempted
from foreign exchange restrictions and have other attractive
benefits.
The IBC formation costs are very competitive, the Belizean IBC
Registry is modern and computerized and incorporation can be
completed within one hour
Offshore Company
Formation Formalities
Belize offshore entities can take one of three forms: the
International Business Corporation, the Trust and the Offshore
Bank.
The International Business Corporation is the most common
offshore company formation and as with most jurisdictions the
trading activities of a Belizean IBC are restricted by statute.
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The international Business Act
1990 specifically prohibits an IBC from:
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- A registered office and
registered agent must be maintained in Belize and the
registered agent appropriately licensed with the necessary
professional qualifications. The information about the
office and agent are the only details that will appear on
the public record. Details of shares and beneficial
ownership are protected from public scrutiny;.
- There are no minimum
capitalization requirements, the nominal authorized share
capital is usually US$50,000.00 divided into shares with
or without par value but capital can be expressed in any
currency;
- Bearer shares can be
issued with or without par value. Registered shares,
preference shares with or without voting rights can also
be issued;.
- Only one director and
share holder are required and a company secretary is
optional. There are no nationality requirements;.
- The company name must end
in: Limited, Ltd, Corporation, Inc, Sociedade Anonima, SA
or a similar ending which will identify it as having
limited liability;
- Transfer of Jurisdiction:
IBC legislation permits foreign companies to be
re-domiciled in Belize;.
- There are no requirement
for meeting of members and Directors;
- There is no requirement to
file annual returns with the exception of franchise tax;
- Company Incorporation
formalities can be completed within 24 hours.
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Belizean Trusts are regulated by
the Trusts Act 1992. The intention of the statute was to
integrate both modern and flexible asset protection
provisions. Trusts can be created (other than a unit trust)
by oral declaration or by a written document including a
will or codicil. A unit Trust can only be created by a
document.
A Trust other than a constructive Trust over land situated
in Belize is not enforceable unless evidenced in writing.
Registration of Trusts is optional. The maximum duration of
a Trust other than charitable Trust is 120 years from the
date of its creation.
Once validly created, a Belizean Trust is impenetrable and
cannot be set aside or varied by a Belizean Court; nor can a
court adjudicate in favour of any claim against Trust
property arising from the Order of a foreign court in
Divorce or Insolvency/Bankruptcy proceedings. It is a common
feature that the Trust is used in conjunction with an IBC to
facilitate the anonymity of beneficiaries from IBC’s
officers.
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Incorporated Belizean local
businesses pay Corporation Tax of up 25% on turnover and
employees pay up to 45% tax on income in addition to social
contributions. There is also Sales Tax up to 12% on the
production of goods and services, stamp duty, Inheritance
and Capital Gains taxes.
IBC's, offshore Banks and Trusts (provided that the Settlor
and Beneficiaries are not resident during the tax year and
Trust property does not include any land situated in Belize)
are exempt from income tax, taxation on the payment of
dividends and interest, gifts, stamp duty, Inheritance and
Capital Gains taxes.
However, Withholding tax of 25% is levied against non
resident companies and individuals in relation to management
fee, mortgage and debenture interest, insurance premiums and
rental of plant and machinery.
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Banking
The major local banks provide a full range of international
banking services including foreign currency savings and
checking accounts earning tax-free interest and operated for
the purpose of exchange control on a non-resident basis.
Belizean Offshore Bank can establish, maintain and operate a
business office in Belize; transact offshore banking
business through its business office in Belize without
restrictions; and transact offshore banking business with a
local entity in Belize licensed under the Banks and
Financial Institutions Act, 1995.
Belize Offshore Banks are not subject to exchange control
regulations.
The Central Bank of Belize was established pursuant to the
Central Bank Act of 1982, the Bank Act. The Central Bank has
a statutory obligation under the Bank Act to foster monetary
stability and promote credit and exchange conditions
conducive to economic growth within the context of the
government's economic policy. One of the most favourable
benefits, subject to references, is that all Belizean
companies can open up a bank account with the Bank of Belize
without additional verification making it one of the most
competitive jurisdictions.
Employment law
Under Belizean law employees are entitled to a minimum wage.
Contractually the first two weeks of employment is the
probation period. Between 2 weeks and 6 months, three days
notice of termination must be given; between 6 months and
one year, one weeks notice; and after that 2 weeks notice.
Employees are entitled to 2 working weeks annual leave, and
to 16 days sick leave at their basic rate of pay providing
they have worked an aggregate period of not less than 60
days within the previous 12 months.
The Labour Department is responsible for the regulation of
trade unions, personnel management and policies, the
security of workers, management responsibilities including
the collective bargaining process and grievance and
disciplinary procedures. Industrial and employment disputes
are handled by the Labour Commissioner who will instruct a
Labour Officer to apply conciliation procedures.
The Constitution prohibits antiunion discrimination both
before and after a union is registered.
Geography,
people and culture
Belize is the most sparsely populated nation in Central
America. Slightly more than half of the population lives in
rural areas. About 25% live in Belize City, the principal
port, commercial centre, and former capital.
Most Belizeans are of multiracial descent. About 46.4% of
the population is of mixed Mayan and European descent (Mestizo);
27.7% are of African and Afro-European (Creole) ancestry;
about 10% are Mayan; and about 6.4% are Afro-Amerindian (Garifuna).
The remainder, about 9.5%, includes European, East Indian,
Chinese, Middle Eastern, and North American groups.
English, the official language, is spoken by virtually all
except the refugees who arrived during the past decade.
Spanish is the native tongue of about 50% of the people and
is spoken as a second language by another 20%. The various
Mayan groups still speak their indigenous languages, and an
English Creole dialect (or "Kriol" in the new orthography),
similar to the Creole dialects of the English-speaking
Caribbean Islands, is spoken by most.
The rate of functional literacy is 76%. About 60% of the
population is Roman Catholic; the Anglican Church and other
Protestant Christian groups account for most of the
remaining 40%. Mennonite settlers number about 7,160.
Immigration and
Residency
An application for permanent residence can be made after one
year of legal residence in Belize on a continuous basis. To
acquire nationality status an applicant should have permanent
residence or have resided legally in Belize for at least 5
years.
There are also incentives for permanent residence for
Investors and Belizeans living overseas.
Legal and Political
System
Belize is a parliamentary democracy based on the Westminster
model and Queen Elizabeth II is head of state and is
represented by a Governor General. The primary executive organ
of government is the cabinet, led by a Prime Minister (head of
government). Cabinet ministers are members of the majority
political party in parliament and usually hold elected seats
in the National Assembly concurrently with their cabinet
positions.
The National Assembly consists of a House of Representatives
and a Senate of 12 members. The 29 members of the House are
elected to a maximum 5 year term. The Governor General
appoints the Senate. Six are appointed on the recommendation
of the Prime Minister, and 3 with the advice of the leader of
the opposition. The Belize Council of Churches and the
Evangelical Association of Churches, the Belize Chamber of
Commerce and Industry and the Belize Business Bureau, and the
National Trade Union Congress and the Civil Society Steering
Committee each advise the Governor General on the appointment
of one senator each. The Senate is headed by a president, who
is a non voting member appointed by the governing party.
Members of the independent judiciary are appointed. The
judicial system includes local magistrates, the Supreme Court,
and the Court of Appeal. Cases may, under certain
circumstances, be appealed to the Privy Council in London
The current Belizean Government is headed by the People's
United Party (PUP), which was elected to a second consecutive
term in office on March 5, 2003. The opposition party is the
United Democratic Party.
Economy
The currency is the Belizean dollar, fixed at BZ$2 = US$1.
Forestry was the only economic activity of any consequence in
Belize until well into the 20th century when the supply of
accessible timber began to dwindle. Cane sugar then became the
principal export. Exports have recently been augmented by
expanded production of citrus, bananas, seafood, and apparel.
Domestic industry is limited, constrained by relatively
high-cost labour and energy and a small domestic market.
A major constraint on the economic development of Belize
continues to be the scarcity of infrastructure investments.
Although electricity, telephone, and water utilities are all
relatively good, Belize has the most expensive electricity in
the region, despite recent cuts in commercial and industrial
rates.
Belize continues to rely heavily on foreign trade, with the
United States as its number-one trading partner. Other
partners include the United Kingdom, European Union, Canada,
Mexico, and Caribbean Common Market (CARICOM) member states.
Legislation
affecting offshore and non resident business
If you require more information on any aspect of company
formations please contact us.
Belizean
Nationality Act 1981
Commercial Free Zone (CFZ) Act 1994
Computer Wagering Licensing Act 1995
Exchange Control Regulations 1980
Export Processing Zone (EPZ) Act 1990
Fiscal Incentive Act No 6 Of 1990
IBC Act, 1990
Income Tax Amendment Act 1998
International Insurance Act, 1999
Limited Liability Partnerships Act, 1999
Limited Life Companies Act, 1999
Money Laundering (Prevention) Act, 1996
Mutual Funds Act, 1999
Offshore Banking Act, 1996
Protected Cell Companies Act, 1999
Registration Of Merchants Ships Act 1989
Retired Persons Incentive Act 1999
Trade Unions and Employers Organizations Act of 2000
Trust Act 1992
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anonymity