Belize is deemed among the best tax havens and one of Latin America’s preferred jurisdictions for setting up an offshore company. The most common type of offshore corporation - Belize IBC and its key features will be presented in this article below to help you clarify why this form becomes widely chosen by foreign companies looking to offshore.
1. 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 tax haven would have its particular version of IBC legislation. And so does Belize IBC!
A Belize IBC 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, Belize IBC does allow offshore investors to engage in a diversity of activities with regard to asset protection, opening bank accounts and many others international commercial transactions.
2. Benefits of Belize IBC
There are countless benefits for why you should incorporate a Belize IBC as followings:
- 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.
- Well-known as a peaceful, democratic and stable country where its judiciary system always put the high priority in hindering conflicts or civil disturbances, facilitating foreign people with a qualified environment for business growth.
- Belize is deemed a premier offshore financial centre by virtue of its robust and diversified economy with offshore industry acting an important role and receiving strong support from the government and the general public.
- 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.
- A wide range of extensive features that IBCs are entitled to receive: tax exemption, owner’s confidentiality, minimum requirement of reporting and many other great merits for offshore corporations which will be discussed later.
3. Difference between LLC and IBC
A question that may be arisen is that what is the difference between Limited Liability Company (LLC) and 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.
4. Key features of Belize international business company
To help you better get insights into Belize international Business company (IBC), we illustrate as below some key features of this type:
Fast incorporation: No more worries about IBC incorporation since Belize does allow you to set up an offshore company 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: Belize International Business Company 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: This is considered as the most highlighted feature of Belize IBC. Belize IBC is a zero-tax entity - to be exempt from paying any form of tax in Belize as long as it carries out business outside the territory.
Furthermore, 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 some of 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 Belize IBCs offer:
- No minimum paid-up capital required
- No requirement for audited accounts
- 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 to books and records. Accounting records do not have to be kept in Belize.
- No requirement for filing annual returns or public disclosure of directors, shareholders, charges, loans or agreements.
Flexible corporate structure: Being flexible in structuring a company enables the organization to be easily accommodated with different needs and changes, either one-man business operation or a complicated multiple-shareholder system. Fortunately, Belize IBCs do offer a high level of flexibility in its corporate structure. Below are some of 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 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 shareholder 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.
5. Requirements of Belize International Business Companies
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 some 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 of funds
It is our hope that all above information about Belize International Business Companies can help you get the picture of Belize offshore company benefits and why Belize is a fantastic vehicle for doing businesses that you should take into consideration.
6. Talk to us
With a speedy and simple process, you can now easily have an IBC registered in Belize. And more conveniently, in case you are still confused about registration’s documents or procedure for a Belize IBC formation, here BBCIncorp Limited will be your trusted service provider! BBCIncorp offers you an all-in-one package that will include everything for you - a foreigner to set up a new Belize International Business Company (IBC) from the beginning! Why BBCIncorp?
- Competitive price - only US$639 for the basic package
- Only 2 working days for setting up an IBC
- No hidden fee
Find out more: Packages for Belize Company Formation