Belize, formerly known as British Honduras, is an independent democratic and politically stable Commonwealth state in Central America. It gained independence from Britain in 1981 and has become famous for offshore company formation and tax optimization.
The governing body of The Belize IBC is International Business Companies Act Chapter 270 of the Laws of Belize, Revised Edition 2000 and is a tax free and exchange control free private limited company having its profit-earning activities conducted outside Belize.
The Belize IBC may be utilized for a variety of reasons ranging from property holding and estate planning to tax optimization as well as forming a part of an overall cross border wealth planning structure. It protects the confidentiality of its owners and is not subject to any reporting requirements, as on date of writing this blog.
Why choose Belize?
- Belize IBC is exempted from all kinds of taxes outside of Belize
- Low incorporation cost compared to other jurisdictions
- Suitable for entrepreneurs, traders, e-commerce, consultants, etc
- No requirement on filing annual accounts or tax return
- No public records of company directors, shareholders or beneficial owners
Belize (IBC) Features
- At least one director/one shareholder
- Required local registered address
- Required local registered agent
- No minimum paid up capital
- Bearer shares not permitted
Bank account opening in Belize
Two major governing bodies monitoring financial sector in Belize are Central Bank and Belize International Financial Service Commission (IFSC). There are several types of financial institutions in Belize like domestic commercial banks, credit unions, offshore Class A banks and offshore Class B banks.
- Certified true copy of passports of all company members
- Certified true copy of address proofs of all company members i.e. identity card, bank statement, driving license, utility bill
- Business summary including services, sectors and major operating countries
1. What is the current tax rate imposed on Belize IBC?
– Starting from 1 Jan 2020, a Belize IBC which carries on business in Belize will be subject to business tax on revenue at a rate ranging from 1.75% – 6% depending on the business activity. However, IBC’s who are tax residents outside of Belize will be exempt from corporate taxation.
2. What is the minimum director/shareholder for setting up a Belize IBC?
– At least one director/shareholder is required for setting up a Belize IBC
3. Is there any qualification or special requirements for directors/shareholders?
– The company directors/shareholders can be individuals or corporate companies. Also there are no specific requirements for nationality or qualifications.
4. Is there any minimum registered or paid up capital for Belize IBC?
– There is no minimum capital requirement.
5. What are the annual requirements to maintain the company?
– Annual obligations to maintain the IBC are
- Maintain one director/shareholder
- Maintain a local registered agent and address in Belize
- Paying annual govt renewal fees
- The company is not required to file any annual tax return or books of accounts, as on date of writing this blog
If you have any questions regarding offshore company formation in Belize then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.
*Please Note: This article was published on 21st December, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.