From A to Z: Belize International Business Company (IBC)

In this article, we will explore the key features of the Belize IBC to help you clarify why it is the favored choice for foreign companies seeking offshore opportunities. Let’s explore the details below.

What is Belize IBC?

International Business Company (IBC) is a private company established in compliance with the laws of jurisdictions and used as a corporate vehicle for doing business overseas. It is important to note that IBCs under any low-tax jurisdiction would have their particular version of IBC legislation. And so does an IBC in Belize!

An international business company in Belize is established under the Belize International Business Companies Act. Belize is widely renowned for its growing financial offshore system and among the most advanced and user-friendly IBC legislation expected by most entrepreneurs worldwide. Notably, this type of company does allow offshore investors to engage in a diversity of activities with regard to asset protection, opening bank accounts, and many other international commercial transactions.

Belize IBCs are now recognized as Belize companies

Under the new Belize Companies Act 2022, Belize IBCs are recognized as Belize companies.

The Act was established to repeal and replace the International Business Companies Act, Cap. 270 which governed international companies, and the Companies Act, Cap. 250 handling local companies in the jurisdiction.

This  means IBCs and local companies in Belize are now regulated by the same law and given a single status.

To ensure alignment with the new provisions under the Act, existing Belize IBCs will need to go through a transitional period (if applicable) in December 2022. And re-registering as companies is one of the requirements IBCs should observe.

Benefits of Belize IBC

There are countless benefits for why you should incorporate an IBC in Belize as follows:

• Fast IBC registry: One of the fastest IBC Registry in the world – Belize’s friendly set of rules and its computerized IBC Registry allows a fast and simple IBC incorporation.
• Political stability and democracy: Well-known as a peaceful, democratic, and stable country where its judiciary system always puts a high priority in hindering conflicts or civil disturbances, facilitating foreign people with a qualified environment for business growth. The legislative system in Belize is based on the English Common Law.
• Premier offshore financial center: Belize is deemed a premier offshore financial center by virtue of its robust and diversified economy with the offshore industry acting an important role and receiving strong support from the government and the general public.
• Strategic location: Located in “a golden site” in which IBCs can get favorable conditions to access state-of-the-art telecommunications both by sea and by air.
• Extensive benefits for business: A wide range of extensive features that IBCs are entitled to receive: tax exemption, owner’s confidentiality, the minimum requirement of reporting, and many other great merits for offshore corporations which will be discussed later.

Difference between LLC and IBC

What is the difference between a Limited Liability Company (LLC) and an International Business Company (IBC) in Belize? Well, both of these are quite similar to each other, they however bear a key disparity in ownership and management regulations.

To put it in plain sight, an IBC in Belize can be owned by a board of directors and have shareholder ownership. By contrast, Belize LLC, much like a combination between a limited liability company and a partnership, does not include shareholders but members, and managers are in charge of the company control.

Key features of Belize international business company

To help you better get insights into international business companies in Belize, we illustrate below some key features of this type:

Fast business setup

No more worries about forming your IBC since your Belize company setup can be done in just a few hours. Belize has a highly effective and computerized Company Registry, making it one of the fastest IBC Registries in the world.

Legal personality

An IBC in Belize is a legal entity registered in Belize. It is deemed a separate legal person with the commercial rights and powers being the same as that of a natural person.

Tax benefits

An international business company established in Belize can gain cost advantages in the incorporation fee and annual fee.

Particularly, companies are required to pay a fixed Belize IBC annual fee to the Belize Government, and this amount is significantly less than in some other jurisdictions.

Those who register an IBC in Belize can also economize from a range of cost factors that can be arisen from the compliance requirements. This is the result of the fact that an IBC in Belize can enjoy:

• No minimum paid-up capital required
• No requirement for appointment of Belize-resident director
• No need to hold a regular Annual General Meeting. If needed, meetings may be held anywhere within or outside Belize as deemed necessary by directors and by telephone, teleconference, or other electronic means.
• Minimum requirements for books and records. Accounting records do not have to be kept in Belize.

Additionally, your IBC will have a possibility of tax exemption if qualified.

Check your Economic Substance requirements

Figure out your eligibility and requirements quick and easy with our Economic Substance Self-Assessment Tool.

Flexible corporate structure

Being flexible in structuring a company enables the organization to be easily accommodated to different needs and changes, either one-man business operation or a complicated multiple-shareholder system. Fortunately, an IBC incorporated in Belize does offer a high level of flexibility in its corporate structure. Below are some of the typical features of this type:

• At least one shareholder and one director are required (both of whom may be the same person). Directors or shareholders do not need to be Belize residents
• Corporate directorship which means another company can be the director of IBC is allowed
• Belize IBC may issue registered shares or shares issued to bearer or both
• The memorandum and articles can be amended by a resolution of shareholders or directors
• A variety of choices regarding company designation are available such as the word “Limited”, “Corporation”, “Incorporated”, “Society Anonyme” or “Sociedad Anonima” or “Aktiengesellschaft” or the abbreviation “Ltd.”, “Corp.” “Inc.” or “S.A.” or “A.S.” or “A.G.”. Note that Belize IBCs may use and may be legally designated by either the full or the abbreviated form.

Need a quick check on the availability of your proposed company name in Belize? Try our Name Check Tool now!

Requirements of Belize International Business Companies

If you have a Belize-based company that is incorporated in Belize and doesn’t have permanent tax residency elsewhere, it’s important to be aware of the following requirements:

Requirements for business activities

In compliance with Belize International Business Companies (Amendment) Act 2018, an International Business Company is allowed to conduct any business unless prohibited under a law in Belize and is required to obtain permission from relevant authorities for carrying out licensed activities as listed below:

• Carrying on banking business;
• Carrying on insurance or reinsurance business;
• Carrying on the business of providing registered agents/offices for companies;
• Carry on trust business;
• Carry on collective investment schemes;
• Carry on the business of managing or administering funds

Annual compliance requirements

Once your company is successfully incorporated in Belize, it’s essential to adhere to the annual compliance requirements to avoid penalties.

To determine your company’s tax status and specific compliance duties in Belize, you can utilize the Belize Tax Status Assessment Tool.

Here is a list of the general requirements for Belize IBCs:

• Maintain a registered office within Belize
• Obtain a Tax Identification Number
• File annual tax return and fulfill tax obligations in Belize
• Submit financial statements and audited reports if your annual income surpasses $6,000,000
• Satisfy any relevant compliance fees as mandated
• Provide evidence of economic substance within Belize
• Maintain comprehensive documentation and accounting records for the company

We hope that by examining the information about the International Business Company in Belize provided above, you can gain a clear understanding of the advantages of forming an offshore company in Belize and why it is an excellent choice for your business endeavors.

Start your Belize company from overseas

Our all-in-one package include everything you need to set up a new Belize IBC from abroad.

• Competitive and transparent pricing: US$1059 for the basic package, no hidden fees guaranteed.
• Swift setup: Only 2 working days required to form your Belize company

Visit Belize Company Formation page for more detail or chat with our support team for quick support.

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