Belize Offshore Guide
Belize is the only officially English speaking country in Central America. Its former name was British Honduras under the British control. It was granted independence in 1981. Its area is 8,867 square miles (22,960 sq km) and has a population of 297,651 as of 2007 census. Belize has one of the lowest population densities in the world, and the lowest in Central America.
The Belize dollar is the official currency and has a value of BZ$2.00 to US$1.00. Its economy was used to be dominated by exportation and agriculture. However, the government implemented economic diversification which paved the way for offshore financial services since its introduction in 1990.
The International Business Company (IBC) more popularly known as Offshore Company is a vital part of the laws of Belize. It is maintained as a tax-free and exchange-control free Limited Liability Company. The law provides that the IBC should conduct profit-earning activities only from external sources.
Once a foreign company decides to do business in Belize, it will be given the option to continue under the law of Belize as an Offshore Company and still maintain to avail of the benefits provided for by law. Individuals with high net worth usually incorporate their IBCs in Belize. This empowers them to lease and own property, property planning, tax optimization, aside from other benefits that they could get.
Belize has one of the fastest IBC Registration processes. On the average, its fully computerized and modernized systems can finish company incorporation within less than an hour. Even Chinese incorporations are accepted and the incorporators can choose any currency denomination for their company shares. The fast growth rate of offshore companies in Belize (with over 35,000 companies) has not yet saturated the availability of company names to choose from. It only shows that there are still lots of room for business to grow in the country.
What attracts many companies to Belize is the cost saving feature of its laws regarding IBCs. Of late, Belize charges registration fees that are competitive with the nearby opportunities in the region. A Company having US$50,000 authorized capital has to pay US$100.00. An additional US$300.00 is charged for a registered agent or office fee and a US$400.00 for a one-time set up fee.
Belize does not require any of the following: minimum capital requirements, audited accounts, annual returns, local director or secretary, and annual general meeting. Because of these, it maintains a considerably low maintenance costs on IBCs.
Flexibility as to the conduct in business is another attractive feature of Belize IBCs. Companies can operate with only one director and one shareholder. The IBC is allowed to conduct any business except insurance, banking, trust management and collective investments because these require licenses. Purchase and redemption by the IBCs of their own shares are also allowed.
Confidentiality is the most attractive attribute of Belize IBCs. Companies are assured that privacy of their information is only made available to The Financial Intelligence Unit of Belize and the International Financial Services Commission of Belize and to no one else. Belize maintains its policy of not requiring companies to disclose publicly their information or to file accounts annually. Because of this, the individual’s freedom and sanctity of private commercial transactions are upheld.