Belize takes good care of its international financial services industry and is aiming to become a choice jurisdiction for offshore investment. Its investment opportunities are diverse having a regime for foundations, trusts, companies, partnerships among varied international financial services.

Recent developments in the international financial services sector have highlighted the importance of sound regulation in jurisdictions throughout the world. Belize is no exception. A well-regulated international financial services sector having a modern tax regime conducive to the offshore industry will continue to attract new business as Belize did in its formative years. The foreign exchange restrictions have be tweaked to maintain status quo in certain entities which has optimised usefulness to our offshore sector.

In Belize, internal taxation is moderate. The domestic companies are subject to a tax rate of 35%. A turnover-based tax is small, corporation tax is 25%. The income tax and social contributions make up to 45%. IBC companies are not liable to any taxes, except for annual franchise tax. There are many offshore schemes available in Belize, that include IBC legislation, trusts law, and an array of free zones and investment incentive schemes. The international pressure to make Belize moderate its offshore legislation in exchange for debt relief has weakened in 2003.

What are the Financial Services Activities that require a license in Belize?

A Special License is required for the following businesses activities.

• Trading in Foreign Exchange (Forex, FX)
• Trading in financial commodity-based derivative instruments and other securities (futures, options, interest rates, shares, stock, contracts for differences etc.)
• Money transmission services
• Payment processing services
• Money brokering
• Money lending and pawning
• Money exchange
• Brokerage, consultancy and advisory services in any financial services
• Accounting services
• Safe custody services
• International asset protection and management

Banking

Belize has several offshore banks that specifically cater to the non-resident customers and offshore IBC`s. All banks provide internet banking facilities, credit, debit or prepaid cards and most of the regular banking services.

Mutual Funds 

Belize has one of the most attractive offshore mutual fund laws in the world.

The general benefits of establishing a mutual fund in an offshore financial centre like Belize are:

• Minimum or zero tax on capital gains, incomes, profits and dividends that accrue to the Fund 
• Minimum or zero tax on fees, commissions and profits earned by the Fund Managers, Advisors and Administrators, registered and regulated in an offshore financial centre
• Greater operational flexibility, in terms of both the choice and structuring of the investment portfolio, and in relation to the internal structuring of the Fund itself
• The relatively lower level of regulation also allows for a faster and easier establishment process of an offshore investment fund. Running and administration costs are typically lower, too. Series of offshore investment funds, designed under the same pattern and having the same recognized managers and administrators, may be created extremely quickly and with minimum cost, thanks to a modern legislation

Insurance

In order to establish in Belize, an insurer must comply with minimum capitalization requirements, as follows:

• USD 100`000 for long-term business (life, endowment, annuities, etc).
• USD 100`000 for general business (marine, engineering, aviation, transportation, motor, property liability, pecuniary loss, creditor, guarantor, personal, etc).
• USD 500`000 for reinsurance business.
• USD 25`000 for captive insurance.*

The minimum paid up share capital must be deposited with an offshore bank or other licensed financial institution in Belize and shall not be removed without the prior written permission of the Belize Supervisor of International Insurance.

Forex Trading

An increasing number of Forex brokers are looking to set up their business in Belize. It might not be the first location that comes to mind, but there are a number of good reasons for its popularity. For companies wanting to set up their business, it is a very simple process, but the tax benefits available in Belize are possibly the biggest advantage. Forex brokers in Belize are not required to pay any tax on earnings made outside of the country, which is of great benefit for brokers offering their online services around the world. Another great advantage is the very strict secrecy laws, which make it almost impossible for researchers and governments to find out who the owners and shareholders of a company are.

The key features of a Belize company formation are:

• Fast Incorporation usually done within 24 hours
• The company only needs one Manager and one Member which can be the same person
• The Manager and Member do not need to reside in Belize
• The Member and Manager information is not shown on public records
• The company is not required to file accounts
• A Belize Company is only required to pay the ‘Yearly Renewal’ on a yearly basis

The Advantages Of Forming Belize Companies

There are a few reasons why you should consider forming Belize companies. The main advantage of offshore Belize companies is that they have great access to some very modern and high tech banking  services and this means that it is very easy to do business from Belize. The advances in banking in the area have seen the place really take off when it comes to offshore Belize companies.

Anonymity

Belize companies are amongst the most confidential on the globe. You must keep financial records but there is no obligation to prepare and file annual accounts and the names of involved parties are not made public for ultimate anonymity.

Ready-made companies

Ready-made, or “shelf” companies are IBC`s, already incorporated by us and available for immediate purchase. Shelf companies have not done any business, have not entered into any dealings or obligations whatsoever. As the name suggests, the incorporation documents of these IBC`s have been kept “on the shelf” in our office, without any practical usage whatsoever.

By choosing a shelf company over a new incorporation several benefits can be achieved:

especially quick delivery times can be achieved, because the incorporation process has already been completed;

an IBC with an older registration date may be acquired, which may be useful by adding a certain “age” and, therefore, respectability to the IBC;

there is no need to go through the frustrating task of thinking-up an original company name, as one can choose from an existing list and perhaps find a suitable name without much thinking.