Registering a Company in Belize

Registering a firm in Belize is an optimal choice for entrepreneurs seeking stability and confidentiality. This offshore center offers a stable economy, a calm political situation, and a favorable tax climate, all of which contribute to the preservation, growth, and development of businesses.

An offshore firm in Belize stands out among competitors due to its impeccable reputation. This country is one of the largest and most popular offshore zones, attracting international enterprises with its high level of confidentiality.

Advantages of Registering a Company in Belize

There are many benefits to choosing Belize for company registration:

1. Low taxes.
2. Fast business registration.
3. No need to submit annual reports.
4. Maximum level of confidentiality.
5. Closed commercial and corporate registers.
6. Low cost of starting a business.
7. Concealed information about business leaders.
8. Lenient legislation.
9. Economic stability.
10. Democracy.
11. Popular offshore center.
12. High degree of confidentiality.
13. Protection of beneficiary information.
14. Asset protection legislation.
15. Stability of the political system.

Types of Companies Registered in Belize

There are four main types of enterprises in Belize:

1. Partnership — This can be a standard partnership or an LLP (Limited Liability Partnership), where at least one partner has limited liability for the company’s debts.
2. IBC — International Business Company. This is the most popular form, offering tax benefits and maximum protection for shareholders’ and directors’ personal data. Such businesses cannot operate within the country, making them advantageous for international trade and other operations.
3. LLC (Limited Liability Company) — This type is flexible in terms of management and income distribution.
4. Trust — A system for managing existing commercial assets.

How to Register an Offshore Company in Belize

Two types of enterprises are particularly popular: IBC (International Business Company) and LTD. The former offers maximum confidentiality for owners and protects their personal data.

The process of registering a firm in Belize includes standard steps. However, it’s crucial to be aware of the nuances of document preparation when choosing a specific business form.

Company Name

Choosing the right name for your company is essential, considering all legal requirements. Here’s what you need to know about naming a Belizean firm:

1. It should indicate the specific type of business activity.
2. It must be written in Latin letters and can have alternative spellings in other languages.
3. It cannot copy or resemble the names of existing organizations.
4. It must not include words like “Chartered,” “Royal,” “Building Society,” “Imperial,” and similar terms, as these relate to the government, royal family members, or His Majesty (according to the Registrar).
5. It should not contain offensive words.
6. It cannot include terms that imply financial activities if the business does not operate in that niche.

Registering an IBC in Belize

To launch an IBC, you need to:

1. Obtain name approval from the Registrar (the name will be reserved for 3 months).
2. Get a Business Name Certificate confirming the successful registration of the institution’s name.
3. Submit the corporate charter and articles of incorporation to the Registrar.

The second document must include:

1. The name of the organization.
2. The registered office address.
3. The name and address of the representative (agent).
4. The purposes of creating the organization.
5. The currency of the company’s shares.
6. Capital details.
7. Share information.

The charter and articles of incorporation must be signed in the presence of a witness. After this, the Registrar will prepare the business registration documents with all signatures and stamps.

Once the business is established, you must contact the social security fund within 7 days of hiring the first employee.

Restrictions for Companies

Certain restrictions are imposed on enterprises registered within the country by law. Here’s what is prohibited:

●      Working with country residents if a non-resident company is registered.

●      Owning personal real estate in the country (renting is allowed).

●      Offering insurance services, conducting trust and financial activities.

●      Using collective investment methods and other schemes.

Ignoring these prohibitions will result in a fine of $500 for each working day or part of a day during which the violation was discovered. The director of the company will be responsible for paying this fine, fully aware that they are breaking the rules.

Office Space

Firms opened in Belize must have office premises in the country (legal addresses). Any changes to these legal addresses must be reported to the registrar in advance. Violating this rule may incur a fine of up to $25 for each day of the violation.

In the office, you need to keep records about:

●      Shareholders.

●      Company branch directors.

●      Beneficial owners.

●      The company’s accounting.

●      Minutes of meetings.

●      Resolutions.

●      The charter.

●      Samples of stamps.

Required Documents for Company Registration in Belize

First and foremost, it’s important to organize the company structure properly. It should consist of:

1. Directors — At least one director is needed to launch a firm in the country (this can be an individual or a legal entity). Information about these individuals is confidential.
2. Shareholders — There must be at least one shareholder (also an individual or legal entity). Their information is also confidential.
3. Secretariat — According to current legislation, a business may not have a secretary, as the country simplifies the process for non-resident businesses.

Documents for Launching a Business

The documentation package differs for legal entities and individuals. For legal entities, copies of the following are required:

●      Business registration certificate.

●      Articles of incorporation.

●      Company charter.

For individuals, copies of these documents are needed:

●      Passport (or another form of identification).

●      Documents confirming the address of residence and citizenship.

Other papers may also be required, depending on the type of business. In general, the list includes:

●      Passports of all shareholders and directors.

●      Proof of the director’s registration address.

●      Proof of the company’s office address.

●      Description of the enterprise’s activities.

●      Foreign passports of directors and shareholders.

Authorized Capital and Shares

Belizean firms operate using US dollars, which is the standard currency for enterprises in the country. The law does not regulate the minimum authorized capital size. Typically, it is set at $50,000. The nominal value of one share is 1 (shares without a nominal value cannot be issued). Issuing bearer shares is prohibited.

Taxation

Companies established by non-residents do not pay VAT but only local taxes and an annual fixed fee. The tax rate for international-level enterprises is as follows:

●      1.75% on profits exceeding $1.5 million.

●      3% on profits below $1.5 million.

●      Corporate tax ranges from 1.75% to 19% (depending on the nature of the business).

If a Belizean resident business is registered, it must pay a 25% tax on the company’s turnover, regardless of profitability.

Offshore companies are subject to an annual fee, determined by the declared authorized capital. The fixed amounts are:

●      $100 per year if the authorized capital is less than $50,000.

●      $1,000 per year if the authorized capital exceeds $10,000.

●      $350 per year if the business issues shares without nominal value.

This fee must be paid by January 31 of the following year.

The main advantages of opening a company in Belize for foreign investors include low tax rates, no requirement for financial reporting, confidentiality, and the simplicity of the registration process.