Company Registration in Belize

Overview of Company Registration in Belize

Belize, a small Caribbean state, is located in Central America. In the north, Belize borders Mexico. In the west - Guatemala and its eastern borders are washed by the Caribbean Sea.

The country is a constitutional monarchy and part of the British Commonwealth of Nations. Belize has a parliament that is re-elected every five years, and its executive power is in the hands of the prime minister.

The official language in Belize is English, but Belizean Creole and Spanish (at least 2/3 of the country's population speaks them) and local dialects of Mayan tribes (up to 10% of the population) are the most spoken among the local population. The ethnic composition of the population is also quite diverse. It includes Belizean mestizos (descendants of the local population and the Hispanic), Creoles, black people, Mayan tribes, Europeans and Asians.

Benefits of Company Registration in Belize

Company Registration in Belize can entail the following benefits

Tax Benefits

It is undeniable that one of the focus points for company registration in Belize is the tax benefits offered by this destination. With a Belize IBC, all local taxes are waived by default, and the classes of taxes for which exclusion applies include capital gains tax, stamp duty, dividend and income taxes. The entrepreneurs are additionally excluded from paying taxes upon the transfer of all types of assets, regardless of whether corporate or financial. This is the reason, Belize is known as a tax-haven jurisdiction.

Easy Company Formation

Belize offshore company are registered in a minimal time and commences their operations at the earliest, which attracts entrepreneurs to this destination.

Asset Protection

Belize Trusts are governed by the Trusts Act. The trust laws of Belize represent one of the most robust and adaptable assets protection trust legislation in the world. Such trust is generally utilized for an IBC. An extra layer of legal security is provided to the owner by using a trust for holding shares in the IBC,

Under the Belize Trust Act, a trust framed under Belize trust laws cannot be changed or put aside by a foreign court. The legitimacy of the trust will be maintained against any such cases concerning marriage, divorce, forced heirship, or creditor claims in instances of bankruptcy or insolvency.

Flexible Corporate Structure

Being flexible in structuring a company empowers the association to be effectively accommodated with various needs and changes, either one-person business operation or a complicated multiple-shareholder system. Luckily, the IBC does offer an elevated level of flexibility in its corporate structure.

Legal Personality

Belize International Business Company is a legal entity registered in Belize. It is esteemed as a separate legal person with the commercial rights and powers same as that of a natural person.

Reduced Operating Expenses

Apart from availing the benefits of offshore enterprises, there is a need to decrease their working expenses. The ideal trade-off is to build up an offshore organization in a reasonable tax-haven country. Working expenses are low owing to affordable labour, overhead, and real estate. Operating a business in Belize is far less expensive than in numerous different destinations worldwide, which can help entrepreneurs a lot of money.

Guaranteed Confidentiality and Financial Privacy

Having an offshore corporation in Belize shields entrepreneurs from frivolous lawsuits. Unfortunately, suing the business for an entire host of reasons is expected in the present society, and even unconfirmed cases can cost partnerships a ton of time, exertion, and cash. Working offshore in a spot like Belize, implies that companies will have both more security and more assurance with respect to mostly all legal issues. Additionally, people have the option of isolating themselves from their enterprises, which adds another layer of protection to individual assets and financial security.

Avoid Limitations of Expansion

There are flexible international business laws in Belize; This implies companies can ensure growth and development without any restrictions.

Fast and Easy Bank Account Setup

Belize is a fundamental spot for opening a bank account, irrespective of it being a corporate bank account. Banks in Belize will allow offshore companies from practically anywhere to open up an offshore bank account.

A Flexible Government License Fee

A Belize IBC must compensate a fixed yearly expense to the Belize Government. For most International Business Companies, this Government charge remains at $ 150 every year. The government fee's actual amount depends upon the sum and kind of approved capital of the IBC.

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Types of Companies in Belize

The different types of companies that can be registered in Belize are discussed below.

Sole proprietorship

A sole proprietorship firm is managed by one person. This is one of the popular Belize company types for small businesses. A sole proprietor is the owner of all business assets and profits, but at the same time, it holds all responsibilities if the company is put under debts or liabilities.

Partnership

A partnership is a traditional business ownership structure commonly used across the globe. The partnership includes 2 or more people who share a single business. Initially, the partners have a legal agreement specifying all related concerns of the partnership, such as decision-making, profits, dispute resolution, etc. A partnership is easily set up; however, partners' liability may closely tie to the actions of the other partners (General Partnership).

Limited Liability Company

A Limited Liability Company (LLC) is favourable businesses structure for the entrepreneurs intending to combine both benefits of a limited company and partnership. This type of company stand-out due to the fact that its member isn't personally liable for debts or obligations of the company, except for the existence of legal agreement among parties.

Such a company enjoy great benefits such as tax advantage, confidentiality, ease of re-domiciliation, and fewer compliance requirements, making it one of the most popular Belize company types for foreign entrepreneurs.

International Business Company

An International Business Company (IBC) is actually a private company set up in compliance with the laws of the jurisdiction. It is considered the most prevalent type of business entity for foreigners to do business overseas.

Belize IBC is an ideal structure as it brings businesses a lot of great benefits, the major being the tax exemptions from any form of local tax in Belize and minimal compliance requirements. Any IBC company enjoy such great advantages only when the company doesn’t conduct any business activity within the territory of Belize.

Public Investment Company

A public investment company (PIC) is also regulated under the International Business Companies Act (Part XI). This structure is permitted to do business in Belize and enjoys tax benefits upon meeting the specific requirements concerning its Net and Gross tangible assets, listed shares, shareholder structures and other requirements as prescribed by the corresponding laws.

Trust

Belize Offshore Trust is widely opted for due to its flexibility and best asset protection. A Trust in Belize is formed under the Belize Trust Act. Belize has made further advancements to its laws of trusts which commenced from the Belize Trust Act 1992 Key advantages of using a Belize Trust are its asset protection, tax minimization, confidentiality (Trust Deed is not made publicly available), flexibility, etc.

Eligibility Criteria for Company Registration in Belize

• Minimum 1 shareholder
• Minimum 1 director
• 1 registered A
• 1 registered Office

Documents Required for Company Registration in Belize

• Certificate of incorporation
• Memorandum and Articles of Association
• Apostille of the bound set of copies of constitutive Documents
• Subscriber’s Resolution
• Resolution of first shares allotment
• Share Certificates

Director ad Nominee Documents

• A resolution affecting the issuing of the Power of Attorney
• Apostilled Power of Attorney
• Consent Letter
• Director Resignation Letter
• Nominee Director’s Declaration
• Resolution affecting the change Director
• Deed of Trust
• Instrument of Transfer

Procedure for Company Registration in Belize

The procedure for company registration in Belize is elaborated below

Reservation of Name with Belize Companies Registry

The applicant is required to have a unique name for the company for which he must first check the availability of the name to avoid any duplicacy and then reserve the same with the Belize Companies Registry

Preparation of Memorandum and Article of Association

After the reservation of name, the applicant must prepare the MOA and AOA for the company clearly specifying the objects of the business other relevant details

Submission of the Documents to the Registrar in Belmopan, along with the formation fee

Subsequent to the preparation of the relevant Documents, they shall be submitted to the Registrar in Belmopan along with the formation fee for obtaining the approval

Grant of Approval by the Central Bank of Belize

Upon the submission of the Documents and payment of the fees, everything shall be verified by the competent authority, followed by the grant of approval by the Central Bank of Belize.

Issuance of Certificate of Incorporation

Once the approval is granted by the Central bank of Belize, the registrar shall issue the certificate of incorporation, which must be displayed at the registered office of the company.

Appointment of Director and Officers

Upon receipt of the Certificate of Incorporation, the first director may be appointed along with the shareholders. Once the company is established officers must be appointed to run the business. These officers may be the directors.

Issuance of a company seal from the relevant authorities

The relevant authorities shall issue the company seal after the above-mentioned steps are completed.