Belize IBCs are popular in the offshore world. They’re easy to incorporate. They’re cheaper than most other offshore companies. Opening an offshore bank account in Belize with a Belize IBC is straightforward. But what can you use a Belize IBC for and are they worth incorporating? Let’s take a closer look.
Belize is a former British colony. It was formerly known as British Honduras. It gained independence in 1981. Because of its history as part of the British empire, Belize is the only country in Central America that speaks English. Belize shares borders with Guatemala and Mexico. Belize has beautiful Caribbean beaches and a tropical climate. It has a population of 404,915.
What is an IBC?
IBC stands for International Business Company. An IBC can do business anywhere in the world, but it’s prohibited from doing business in Belize or with citizens of Belize. Belize has an efficient companies registry. IBCs can be registered quickly. Belize is one of the most cost effective locations to incorporate offshore. IBCs can easily open bank accounts with banks in Belize. The legal system in Belize is based on English common law.
Belize IBCs need only 1 director and shareholder.
Belize IBCs are required to have a local agent and registered office in Belize.
Taxation of Belize IBC
There is no corporation tax, capital gains tax or transfer tax on Belize IBCs. Belize does not regulate the activities of companies outside Belize. It maintains the registry and charges a small annual gee to keep the company in good standing.
Privacy and Disclosures
No public disclosure is required of directors, shareholders or beneficial owners. This information is provided to the registrar and the agent but its not available on any public database. There is no requirement to have Belize resident directors. No annual general meetings are necessary for a Belize IBC. Company meetings can be held anywhere in the world.
Foreign judgements are recognised in Belize only if the court of the foreign country recognises judgments made in Belize court. There is no agreement for US judgements to be recognised in Belize. UK judgements from the High Court in England or Scotland are recognised in Belize and can be presented to the High Court in Belize for enforcement.
There’s no requirement to file annual accounts for Belize IBCs. No records of accounts need to be maintained by the registered agent. No books and records need to be kept in Belize. A brief annual return is required to be filed in Belize for an IBC. This contains only the most basic information. A small renewal fee is paid at the time of filing. This keeps the IBC in good standing with the Belize authorities.
A Belize IBC may be useful for some trading. They can be set up in a few days. They offer tax free trading around the world. Setting up a bank account in Belize is straightforward. Banking for a Belize IBC outside Belize will be more challenging.
A Belize IBC could be used for owning specific assets like cars, boats, crypto currency or real estate. It’s not the best choice for a business that is doing a significant amount of transactions. There are better options for companies with regular operations. A Belize IBC will work well for specific uses where there are limited counterparties and it can survive with the limited banking and brokerage options available to it. Set up costs and running costs are lower than in other offshore jurisdictions