Belize is becoming one of the fastest growing offshore jurisdictions for offshore company formation. Belize has a government that is committed to engaging in successful offshore business, and with offshore legislation that imposes strict secrecy and privacy policies, offshore investors have the opportunity to incorporate a company in a safe and secure jurisdiction.
Offshore business activity in Belize is sometimes used by clients as a means of protecting and preserving wealth and assets and an offshore company in Belize has the advantage of legislation that incorporates flexibility in offshore company structure. Belize offshore legislation is in place for offshore banking, the incorporation of offshore companies among other offshore services.
Belize offshore legislation is devised primarily to provide an attractive offshore environment for offshore sector thus ensuring its growth and success, and secondly, to maintain the reputation and professional integrity of the Belize offshore jurisdiction. The amendments and newer Belize offshore legislation for offshore businesses were introduced to further develop offshore financial services in Belize. Belize offshore legislation is chief information that governs offshore company operations, formations and management in the country.
Belize offshore legislation includes- Belize International Business Companies Act; Belize Offshore Banking Act 2000; Belize International Insurance Act 2000 Belize Mutual Funds; Belize Limited Liability Partnership Act; Belize Trusts Act; Belize International Business companies; Offshore Banking; and Offshore trusts.
Why choose Belize to set up an offshore business or to incorporate an International Business Company (IBC)? The answer is simple, the country’s more popular offshore product the International Business Companies -IBCs and all other offshore businesses are guaranteed by law the investor friendly company structure, tax free status, exchange control exemption, confidentiality and most importantly an affordable product. All of this is guaranteed by Belize offshore legislation. Belize is a jurisdiction which is economically and politically stable and it does not permit foreign governments to investigate a Belize IBC or its offshore companies.
The Belize offshore legislation which regulates the Belize International Business Companies Act implemented in 1990. Belize offshore legislation prohibits an International Business Company is from conducting any profit earning business locally or within Belize, they can however open an account with a domestic bank in Belize or hold shares in another Belize IBC. Some of the legislative advantages of a Belize incorporated International Business Company are:
- A Belize International Business Company or more commonly called an offshore company is exempted from all local taxation including income tax and capital gains tax.
- Strict secrecy and disclosure policies- it is an offense by law of either a fine of US$5,000 or imprisonment of up to 6 months.
- Exemption from currency exchange control
Other advantages of offshore IBCs in Belize are
- Free zones providing packaging, manufacturing and warehousing facilities
- Quick incorporation time- the IBC registry is completely computerized thus incorporation can be done in as little as 1 hour
- Political and economic stability
- Efficient and reliable workforce who are multilingual speaking Chinese and Spanish.
The Belize International Companies act was amended in 1999 providing for the registration and establishment of an offshore Limited Liability Company (LLC). A Limited Liability Company is developed primarily for tax purposes. This company can function both as a corporation and a partnership. Under Belize offshore legislation the company is limited to a life of maximum 50 years. The name of a Limited Liability Company shall end with the word limited or its abbreviation LLC.
Following the more popular IBC type of offshore product, Belize’s offshore bank business is growing extensively. Belize offshore legislation for banking states that the offshore bank is regulated under the Offshore Banking Act of 1996. Belize offshore legislation defines an offshore bank as a business that receives, borrows and acquires foreign money exclusively from non- residents. Offshore banks are forbidden from carrying on business, receiving or lending money to local residents.
Offshore banks incorporated in Belize experience excellent asset protection and security through the legislation whereby confidentiality and privacy of ownership is law and this is even more assured as Belize is a financially, politically and economically stable and trustworthy as a offshore environment and this makes the country a safe offshore jurisdiction. Belize offshore legislation stipulates that a Belize offshore bank must establish and maintain an office presence in Belize from where business transactions can be conducted. The company is not restricted to do offshore banking business from that office.
Offshore banks must be licensed with the Central bank of Belize. There are two types of license; A class (unrestricted) and B class (restricted) licenses. Both types of license give offshore banks the power to establish, maintain and operate banking business in Belize without restrictions. However a B class license holder is restricted to conducting offshore banking business only by what is specified in its license.
An offshore trust in Belize is an excellent way to protect assets and secure wealth. Belize offshore trust is becoming increasingly popular with individuals who would like to maintain or transfer assets to a beneficiary with no taxation penalties. Under Belize offshore legislation an offshore trust can legally own property that is distinguished and separated from the trustee’s personal assets. A trustee can transfer all assets in the name of the offshore trust which is not liable to investigations or claims by any foreign governments, courts or persons. A Belize offshore trust is easily maintained as there are no requirements to reveal the beneficiary of the offshore trust and a Belize offshore trust company is not required to provide audit reports to the country’s government. There are three elements in a Belize offshore trust; the Settlor who creates the trust, the trustee who is responsible for the trust and the Beneficiary (of the trust). A trust can be created either by written or oral declaration. The trust attributes of asset protection and preservation of wealth makes it an ideal venture for wealth preservation and enhancement.
Belize offshore legislation also allows for International Insurance. This piece of legislation was passed in 1999(Amended in 2000) making provisions for registration and management of a Belize International Insurance Company from or within Belize, however, the offshore insurance company must however be licensed to carry out international Insurance in Belize. The minimum share capital required for long term and general business (annuities, endowment, life etc) is US$100,000. An International Insurance company in Belize is required to have at least one director who is resident in Belize and must have a registered address in Belize.
Belize offshore legislation is designed to regulate and preserve the integrity of offshore financial services in Belize. Belize is a very popular offshore jurisdiction that assures its clients complete confidentiality and secrecy.