From A to Z: Belize International Business Company (IBC)

Belize is deemed among the best low-tax jurisdiction. It is also one of Latin America’s preferred jurisdictions for setting up an offshore company. The most common type of offshore corporation – Belize IBC and its key features will be presented in this article below to help you clarify why this form becomes widely chosen by foreign companies looking offshore.

What is Belize IBC?

International Business Company (IBC) is a private company established in compliance with the laws of jurisdictions and used as a corporate vehicle for doing business overseas. It is important to note that IBCs under any low-tax jurisdiction would have their particular version of IBC legislation. And so does an IBC in Belize!

An international business company in Belize is established under the Belize International Business Companies Act. Belize is widely renowned for its growing financial offshore system and among the most advanced and user-friendly IBC legislation expected by most entrepreneurs worldwide. Notably, this type of company does allow offshore investors to engage in a diversity of activities with regard to asset protection, opening bank accounts, and many other international commercial transactions.

UPDATE

As of 2022, Belize IBCs are recognized as Belize companies under the new Belize Companies Act 2022. The Act was established to repeal and replace the International Business Companies Act, Cap. 270 which governed international companies, and the Companies Act, Cap. 250 handling local companies in the jurisdiction. This also means IBCs and local companies in Belize are now regulated by the same law and given a single status.

To ensure alignment with the new provisions under the Act, existing Belize IBCs will need to go through a transitional period (if applicable) in December 2022. And re-registering as companies is one of the requirements IBCs should observe.

Benefits of Belize IBC

There are countless benefits for why you should incorporate an IBC in Belize as follows:

• One of the fastest IBC Registry in the world – Belize’s friendly set of rules and its computerized IBC Registry allows a fast and simple IBC incorporation.
• Well-known as a peaceful, democratic, and stable country where its judiciary system always puts a high priority in hindering conflicts or civil disturbances, facilitating foreign people with a qualified environment for business growth. The legislative system in Belize is based on the English Common Law.
• Belize is deemed a premier offshore financial center by virtue of its robust and diversified economy with the offshore industry acting an important role and receiving strong support from the government and the general public.
• Located in “a golden site” in which IBCs can get favorable conditions to access state-of-the-art telecommunications both by sea and by air.
• A wide range of extensive features that IBCs are entitled to receive: tax exemption, owner’s confidentiality, the minimum requirement of reporting, and many other great merits for offshore corporations which will be discussed later.

Difference between LLC and IBC

What is the difference between a Limited Liability Company (LLC) and an International Business Company (IBC) in Belize? Well, both of these are quite similar to each other, they however bear a key disparity in ownership and management regulations.

To put it in plain sight, an IBC in Belize can be owned by a board of directors and have shareholder ownership. By contrast, Belize LLC, much like a combination between a limited liability company and a partnership, does not include shareholders but members, and managers are in charge of the company control. Unlike IBCs since 2022, when certain updates were made regarding IBCs’ economic substance or tax implications, LLCs in Belize may be your alternative. Currently, the LLC is not subject to the ES rule or required to obtain a Tax Identification Number (TIN).

Key features of Belize international business company

To help you better get insights into international business companies in Belize, we illustrate below some key features of this type:

Fast setup

No more worries about forming your IBC since your Belize company setup can be done in just a few hours. Belize has a highly effective and computerized Company Registry, making it one of the fastest IBC Registries in the world.

Legal personality

An IBC in Belize is a legal entity registered in Belize. It is deemed a separate legal person with the commercial rights and powers being the same as that of a natural person.

Tax benefits

This is considered a highlighted feature of Belize IBC. It is a low-tax entity.

Furthermore, an international business company established in Belize can gain cost advantages in the incorporation fee and annual fee. Particularly, companies are required to pay a fixed Belize IBC annual fee to the Belize Government, and this amount is significantly less than in some other jurisdictions.

Those who register an IBC in Belize can also economize from a range of cost factors that can be arisen from the compliance requirements. This is the result of the fact that an IBC in Belize can enjoy:

• No minimum paid-up capital required
• No requirement for appointment of Belize-resident director
• No need to hold a regular Annual General Meeting. If needed, meetings may be held anywhere within or outside Belize as deemed necessary by directors and by telephone, teleconference, or other electronic means.
• Minimum requirements for books and records. Accounting records do not have to be kept in Belize.

Additionally, your IBC will have a possibility of tax exemption if qualified.

Flexible corporate structure

Being flexible in structuring a company enables the organization to be easily accommodated to different needs and changes, either one-man business operation or a complicated multiple-shareholder system. Fortunately, an IBC incorporated in Belize does offer a high level of flexibility in its corporate structure. Below are some of the typical features of this type:

• At least one shareholder and one director are required (both of whom may be the same person). Directors or shareholders do not need to be Belize residents
• Corporate directorship which means another company can be the director of IBC is allowed
• Belize IBC may issue registered shares or shares issued to bearer or both
• The memorandum and articles can be amended by a resolution of shareholders or directors
• A variety of choices regarding company designation are available such as the word “Limited”, “Corporation”, “Incorporated”, “Society Anonyme” or “Sociedad Anonima” or “Aktiengesellschaft” or the abbreviation “Ltd.”, “Corp.” “Inc.” or “S.A.” or “A.S.” or “A.G.”. Note that Belize IBCs may use and may be legally designated by either the full or the abbreviated form.

Requirements of Belize International Business Companies

In compliance with Belize International Business Companies (Amendment) Act 2018, an International Business Company is allowed to conduct any business unless prohibited under a law in Belize and is required to obtain permission from relevant authorities for carrying out licensed activities as listed below:

• Carrying on banking business;
• Carrying on insurance or reinsurance business;
• Carrying on the business of providing registered agents/offices for companies;
• Carry on trust business;
• Carry on collective investment schemes;
• Carry on the business of managing or administering funds

After you have successfully incorporated your company in Belize, you must follow the tax return filing regulation in order to avoid penalties. In September 2021, the Belize Tax Service Department has announced the new deadline for yearly tax return filing of grandfathered-in IBCs and non-exempt IBCs. Keep track of Belize Annual Tax Return & How To File to keep your Belize IBC stay complaint.

It is our hope that a glance at the International Business Company in Belize above can help you get the picture of Belize offshore company benefits and why Belize is a fantastic vehicle for doing business that you should take into consideration.

Quick checklist of Belize IBC annual requirements under the new Act

Belize-based companies incorporated in Belize without permanent tax residency in another jurisdiction should keep in mind below requirements:

• Having a registered office in the jurisdiction
• Applying for a Tax Identification Number
• Filing annual tax returns and paying taxes in Belize
• Filing financial statements and audited reports if the yearly income exceeds the threshold of $6,000,000
• Paying related compliance fees as required
• Providing proof of economic substance in Belize
• Keeping documentation and accounting records of the company

How can BBCIncorp Limited help you?

With a speedy and simple process, you can now easily have an IBC registered in Belize. And more conveniently, in case you are still confused about registration documents for Belize IBC formation, here BBCIncorp Limited will be your trusted service provider! BBCIncorp offers you an all-in-one package that will include everything for you – a foreigner to set up a new Belize International Business Company (IBC) from the beginning! Why BBCIncorp?

• Competitive price – only US$1059 for the basic package
• Only 2 working days for setting up a Belize company
• No hidden fee

Visit our Belize Company Formation page for detailed packages!

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