Located on the eastern Caribbean coast south of Mexico and east of Guatemala, and 2 hours from two major US gateways, Belize's countryside is replete with beautifully undulating rivers a terrain of mountains and a lush tropical rain forest
Belize is probably best known as one of the deep sea diving and fishing capitals of the Caribbean. The largest barrier reef in the western hemisphere is found just off the Belizean coast. Fisherman and divers will tell you the reef is one of the most prolific in the world.
The climate is subtropical, with a brisk prevailing wind from the Caribbean Sea. The country has an annual mean temperature of 79 degrees Fahrenheit, and the humidity is nicely tempered by the Sea breezes.
The Belize Dollar (BZ$) has a fixed rate of exchange of BZ$2 to US$1. Most hotels, resorts, restaurants, and tour operators will accept U.S. currency, traveler's checks, or credit cards.
Like many small countries dependent on basic commodities, Belize's government realized the need for tax-reforms to boost foreign investment. Belize has been trying to become an offshore financial center for some time, with much success. Shortly after independence, Belize's leaders began to introduce legislation to make Belize attractive to foreign investors looking for Tax havens and asset protection. The new legislation followed much the same format as found in the other British style tax havens of Cayman, the British Virgin Islands, the Bahamas and Bermuda. Many foreign businesses may qualify for tax holidays under the Belize Development Incentives Ordinance.
What is an IBC
THE IBC ACT 1990
Belize has become popular jurisdiction for the incorporation of IBC due to its English-based legal system. The IBC legislation was based on the British Virgin Island model. In addition, full-ranged, high-tech and international offshore banking services empower Belize as an ideal jurisdiction, so that Belize has been experiencing a fast growth in the formation of International Business Companies. Belizean IBC enjoy a flexible corporate structure making Belize a dynamic leader globally in the incorporation of International Business Companies.
Advantages of Belize IBC's
One of the most important features is that a Belize IBC is a zero-tax entity and as such is free from income tax on its income. In addition, there is no estate duty or stamp duty on the transfer of shares in IBC's by non-resident persons. IBC's formed in Belize are exempt from any exchange controls and have limited liability.
1) Cost Advantages
There are significant costs advantages in choosing Belize to promote to incorporate an IBC over other Caribbean countries with similar legislation. The incorporation fee and annual fee is substantially less in comparison to other countries - US$100 for companies with registered capital of up to US$50,000.
In addition, an International Business Company formed in Belize may benefit as a result of economies arising from the following cost factors:
- No minimum capital requirement
- No requirement for audited accounts
- Full exemption from all local taxes including stamp duty.
- Fast and easy incorporation for immediate planning needs.
- No requirement for filing an annual return; a share register, minutes of meeting, copies of resolutions, and a seal are all that is required
- No requirement for the appointment of a local director or secretary; a Belize registered office and registered agent together with a minimum of one director are the only requirements
2) Flexibility Factors
The current IBC legislation in Belize provides for a high degree of flexibility in the method of structuring a company and in the way that structure may be adapted to meet an organization's changing needs. Whilst a company may begin its existence for a particular purpose, it can, in most cases be utilized to deal with other types of transactions.
The key features of the legislation are as follows:
- Only one shareholder is required
- Registered shares or bearer shares may issued as well as voting and non-voting shares; shares with or without a par value; and shares denominated in any currency
- Shares can be purchased into treasury and can be readily redeemed
- Another company can be director of an International Business Company
- Continuation and Re-domiciliation to and from other jurisdictions. The memorandum and articles can be amended by a simple resolution of shareholders, or directors, providing the articles allow for this and a copy of the resolution is sent to the Registrar with the relevant fee.
- A choice of various corporate designations are available for the company name (including "Limited", "Corporation", "Incorporated"; "Societe Anonyme" etc) and abbreviations may be used.
In addition, a Belize International Business Company can be formed and registered in approximately one hour. All that is required is to file signed copies of the memorandum and articles of association together with the relevant incorporation fee in $US with the Registrar. Once the Registrar has confirmed compliance, a certificate of incorporation will be issued and the IBC will be registered accordingly and all relevant documents will be couriered within 24 hours.
- 3) Confidentiality
The ease and speed of the formation of Belize IBC's does not in any way derogate the shield of confidentiality provided by the legislation. The share register and records of the company remain closed to the public and may only be inspected by a shareholder. The only documents which are accessible to the public are the Memorandum and Articles of Association and the Certificate of Incorporation.
Moreover, there are no restrictions on nominee shareholders and bearer shares can be issued.
