Company Registration in Belize
Belize is one of the world’s largest offshore jurisdictions. This country is trendy for companies operating in a wide range of fields. This is especially true for financial organizations, for which attractive conditions for doing business have been created here. However, to register a company quickly in this country, you need to know about the peculiarities of the procedure. It is better to entrust this procedure to professionals, who will ensure a fast opening of the company.
The Lawtter Solutions law firm offers clients company registration services in Belize. The company’s specialists have the necessary experience and knowledge of local legislation. We provide registration of legal entities in Belize on favorable terms. Clients can also buy a company in Belize with the necessary licenses.
1 990 EUR*
1-3 days
0% – 19%
Without a personal visit
Benefits
Advantages of Offshore Registration in Belize
Company registration in Belize is very popular. This state offers several important advantages. The main ones are as follows:
Political Stability
Developed legislation for offshore companies
A high confidentiality level
Attractive taxation conditions
Attractive conditions on reporting
Programs for foreign investors
Possibility of remote registration
International Business Company
It is the most popular solution for offshore company registration. Such companies are subject to minimum requirements for authorized capital and have a structure similar to LLCs. International companies are not entitled to operate on the territory of Belize.
Limited Liability Company
This is an analog of LLC. In such organizations, the liability of members for the obligations of the company is limited to the authorized capital. LLC companies can be both offshore and resident in Belize.
Public Investment Company
Public investment companies are used for capital and asset management. They cannot conduct business activities in Belize’s territory. Investors from any country in the world can be members of such organizations.
Partnership
A partnership must have one general partner and limited partners. The general partners are fully liable for the obligations, and limited ones are partially responsible.
Director
Non-resident companies in Belize must have at least one director. The director does not need to be a resident, but they can be a citizen of any country who has reached the age of 18. A person on the sanctions list cannot be appointed as a director. In Belize, nominee service is available. The appointment of a secretary is optional.
Shareholder
Companies in Belize must have at least one shareholder. There are also no residency requirements. A shareholder can be a legal entity or an individual who has reached the age of 18. A nominee shareholder can be appointed.
Address
The company must have a registered office in Belize as well.
Name
The company’s name must be unique and should be checked before registration. There is a requirement for endings. The names of IBC-type companies always end with the words Limited, Corporation, Incorporated, or their abbreviations: Ltd., Corp., Inc. As for Limited Liability companies, the ending should be LLC, and Limited Partnerships end with LP.
Authorized Capital
There are no authorized capital requirements for non-resident companies in Belize. You can start work with an authorized capital of $1. Still, the recommended level of authorized capital for an offshore company in Belize is $50,000.
Local Account
When registering an offshore account in Belize, opening a bank account at a local bank is unnecessary. You can operate with accounts in banks from any country in the world.
Registration Agent
Under Belizean law, there is a requirement to have a registration agent.
Reporting
Companies are required to file accounts.
Before opening an offshore company in Belize, it is essential to familiarize yourself with the peculiarities of taxation. The country has a global principle of taxation: company profits are taxed on the global income.
Business Tax
Business tax is calculated as a percentage of revenue. The rate of this “turnover” business tax varies depending on the type of income (from 0.75% to 19%). An LLC does not pay business tax if it does not do business in Belize. Companies may be exempt from business tax and passive income tax if they can prove that they are tax residents of another country (which is not on the EU blacklist) and do not have a permanent establishment in Belize.
Income Tax
Belize levies an annual income tax at fixed rates. They depend on the size of the company’s profits. The tax rates in Belize are as follows:
- 1.5% if the company’s profits are less than $1500000;
- 3% if the company’s profits exceed $1500000.
Value-Added Tax
There is no value-added tax for non-residents of Belize. For tax residents of the jurisdiction, the VAT rate is 12.5%.
Tax on Interest, Dividends, and Royalties
Belize has a tax on royalties, interest, and dividends. The rate for non-residents is 15%.
Real Estate Tax
If the organization owns real estate in Belize, it must pay property tax at 1-1.5%.
Before registering an offshore company in Belize, it is important to familiarize yourself with the reporting requirements. The jurisdiction has requirements for filing a tax return and auditing financial statements.
Tax Return
A tax return for companies in Belize is mandatory to file. It must be filed annually, no later than March 31 of the year following the accounting period.
Accounting Statements
Offshore companies in Belize are required to file accounting reports. The deadline for filing is the same as for tax returns — no later than March 31 of the year following the reporting period.
Audit of Financial Statements
IBC companies are not required to audit financial statements if they do not exceed the established threshold of annual income. The income threshold is $6,000,000. You must be audited if revenue exceeds $6,000,000 and at least 2 of the following criteria are met:
- The company’s shares are traded on the stock exchange;
- The company is in the process of reorganization or liquidation or is selling all of its assets at public auction;
- The International Financial Services Commission regulates the company;
- The company prepares consolidated financial statements.
International Business Company
It is the most popular solution for offshore company registration. Such companies are subject to minimum requirements for authorized capital and have a structure similar to LLCs. International companies are not entitled to operate on the territory of Belize.
Limited Liability Company
This is an analog of LLC. In such organizations, the liability of members for the obligations of the company is limited to the authorized capital. LLC companies can be both offshore and resident in Belize.
Public Investment Company
Public investment companies are used for capital and asset management. They cannot conduct business activities in Belize’s territory. Investors from any country in the world can be members of such organizations.
Partnership
A partnership must have one general partner and limited partners. The general partners are fully liable for the obligations, and limited ones are partially responsible.
Director
Non-resident companies in Belize must have at least one director. The director does not need to be a resident, but they can be a citizen of any country who has reached the age of 18. A person on the sanctions list cannot be appointed as a director. In Belize, nominee service is available. The appointment of a secretary is optional.
Shareholder
Companies in Belize must have at least one shareholder. There are also no residency requirements. A shareholder can be a legal entity or an individual who has reached the age of 18. A nominee shareholder can be appointed.
Address
The company must have a registered office in Belize as well.
Name
The company’s name must be unique and should be checked before registration. There is a requirement for endings. The names of IBC-type companies always end with the words Limited, Corporation, Incorporated, or their abbreviations: Ltd., Corp., Inc. As for Limited Liability companies, the ending should be LLC, and Limited Partnerships end with LP.
Authorized Capital
There are no authorized capital requirements for non-resident companies in Belize. You can start work with an authorized capital of $1. Still, the recommended level of authorized capital for an offshore company in Belize is $50,000.
Local Account
When registering an offshore account in Belize, opening a bank account at a local bank is unnecessary. You can operate with accounts in banks from any country in the world.
Registration Agent
Under Belizean law, there is a requirement to have a registration agent.
Reporting
Companies are required to file accounts.
Before opening an offshore company in Belize, it is essential to familiarize yourself with the peculiarities of taxation. The country has a global principle of taxation: company profits are taxed on the global income.
Business Tax
Business tax is calculated as a percentage of revenue. The rate of this “turnover” business tax varies depending on the type of income (from 0.75% to 19%). An LLC does not pay business tax if it does not do business in Belize. Companies may be exempt from business tax and passive income tax if they can prove that they are tax residents of another country (which is not on the EU blacklist) and do not have a permanent establishment in Belize.
Income Tax
Belize levies an annual income tax at fixed rates. They depend on the size of the company’s profits. The tax rates in Belize are as follows:
- 1.5% if the company’s profits are less than $1500000;
- 3% if the company’s profits exceed $1500000.
Value-Added Tax
There is no value-added tax for non-residents of Belize. For tax residents of the jurisdiction, the VAT rate is 12.5%.
Tax on Interest, Dividends, and Royalties
Belize has a tax on royalties, interest, and dividends. The rate for non-residents is 15%.
Real Estate Tax
If the organization owns real estate in Belize, it must pay property tax at 1-1.5%.
Before registering an offshore company in Belize, it is important to familiarize yourself with the reporting requirements. The jurisdiction has requirements for filing a tax return and auditing financial statements.
Tax Return
A tax return for companies in Belize is mandatory to file. It must be filed annually, no later than March 31 of the year following the accounting period.
Accounting Statements
Offshore companies in Belize are required to file accounting reports. The deadline for filing is the same as for tax returns — no later than March 31 of the year following the reporting period.
Audit of Financial Statements
IBC companies are not required to audit financial statements if they do not exceed the established threshold of annual income. The income threshold is $6,000,000. You must be audited if revenue exceeds $6,000,000 and at least 2 of the following criteria are met:
- The company’s shares are traded on the stock exchange;
- The company is in the process of reorganization or liquidation or is selling all of its assets at public auction;
- The International Financial Services Commission regulates the company;
- The company prepares consolidated financial statements.
Registration companies
Company Registration Procedure in Belize
To register a company in Belize, you need to go through 5 steps. You can see them in the list below.
Due Diligence and KYC Verification
Name Verification
Documents Preparation
Filing of Documents
Preparation of Internal Company Documents
Documents
Documents Required for Registration
Registering a company in Belize will require a local registration agent. It is they who open the legal entity. It is necessary to prepare a package of documents to open a company. Furthermore, it includes the following papers:
- Notarized Memorandum and Articles of Association.
- Personal data of shareholders — personal data, proof of residence address.
- Personal data of directors — personal data, proof of residence address.
- Certificate of registration of the company name.
If the company opens a branch or representative office in Belize, it must additionally provide the constituent documents of the parent organization.