About Belize
Belize is an independent country located
on the Caribbean Sea in mainland Central America with Mexico to the
North and Guatemala to the South and West. It has a population of
about 250,000 and covers an area 8,867 square miles. For nearly 4,000
years, it formed the keystone of the empire of the ancient Maya who
developed, what was for their time, the most advanced civilisation
in the New World. English is the official language although Spanish
is also widely spoken. The ethnic mix is one of the most diverse in
the Western Hemisphere.
Under British rule and following Independence
in 1981, Belize has enjoyed a history of peace, stability and democracy.
While still a colonial state called British Honduras, self-government
was achieved in 1964 and the name Belize was restored in 1973.
The legal system of Belize is founded on
English Common Law supplemented by local legislation. The certainty
with which the affairs of the professional and business community
are conducted, particularly trust and commercial matters, is a tribute
to this solid foundation and the continuing high standards of training
and practice of the professional and financial community in Belize.
The Belize Court system is modelled on the English system and the
court of final appeal on questions of law is the Privy Council of
the House of Lords in England.
The political system is based upon the
Westminster model, with Queen Elizabeth II (represented by a Governor-General
in Belize) as titular head. Executive authority in Belize is exercised
by the Cabinet under the leadership of the Prime Minister, and new
legislation is enacted by a 29-member House of Representatives elected
by universal adult suffrage every five years. There are two major
political parties - the Peoples United Party and the United Democratic
Party. Both parties are committed to the economic development of the
country and to the expansion of the offshore financial services industry.
Belize is a member of the Commonwealth
of Nations, the United Nations, the Caribbean Common Market (CARICOM),
the Non-Aligned Movement, the Organisation of American States (OAS),
the International Monetary Fund, the World Bank, the Caribbean Development
Bank, the Inter-American Development Bank as well as many other regional
and international organisations.
Unlike many of the island offshore jurisdictions,
Belize still relies heavily on its rich farmlands - with sugar, bananas
and citrus being the main export crops. Lobster, shrimp and other
marine products also contribute significantly to the country's foreign
exchange earnings.
However, in recent years it is the growth
of both the tourism and international financial services industries
that has helped to put Belize firmly on the map. With the expansion
of trade liberalisation programmes and accessibility to world markets
becoming ever easier, effective tax planning and financial management
have become critical tools in the development of a comprehensive strategic
plan.
The demand for offshore services increases
steadily and this will secure the future of this industry well into
the 21st century.
Belize enjoys excellent telecommunication
services worldwide, efficient international courier services and direct
daily flights to the USA (Houston and Miami - both offering world-wide
connections) and Central America.
A Belize IBC is an offshore company which
conducts its trading and business outside of Belize.
Belize's legislation also allows an IBC to carry on the following
activities within Belize:
- make or maintain deposits with local
banks in Belize;
- make or maintain professional contact
with persons in Belize;
- prepare or maintain books and records
within Belize;
- hold meetings of its directors or members
within Belize;
- hold lease of property for use as an
office in Belize;
- own a vessel (s) registered in Belize
in accordance with the Registration of Merchant Ships Act, 1989;
- hold shares in another Belize IBC.
Advantages Belize's modern and up
to date offshore legislation provides for maximum flexibility in global
asset protection and tax and investment planning. As a result, an
investor can realize many competitive advantages in areas such as:
Taxation A Belize IBC is exempt from...
- the payment of all forms of local taxation;
- the payment of stamp duties for transactions
in respect of its shares,
- debt obligations or other securities;
- the payment of stamp duties with respect
to all instruments relating in any
- way to its assets or activities.
Exchange Control A
Belize IBC is not subject to exchange control regulations. Security
and Confidentiality With a Belize IBC... - disclosure of the beneficial
owner(s) is not required; - share register may be inspected only by
a shareholder; - nominee shareholders and bearer shares are permitted;
- assets are protected from confiscation or expropriation orders or
similar actions by foreign governments.
Filing Requirements With a Belize IBC... - only the Memorandum
and Articles are required for public records; - the registration and
deregistration of Registers of Directors, Members, and Mortgages and
Charges are optional.
Cost Savings With a Belize IBC...
- no minimum capital is required;
- no audit of accounts is required;
- no filing of annual returns is required;
- only one shareholder and one director
are required, who may be corporate;
- no company secretary is required;
- no annual general meeting is required;
- meetings may be held outside of Belize
and may be by telephone or other electronic means;
- shares may be issued with or without
par value and in any currency.
Incorporation in Belize;
- re-domiciliation into and out of Belize
is permitted;
- registration in any foreign language
is permitted.
In addition, Belize's legislation facilitates speedy and simple
incorporation, and its modern and computerized IBC Registry is capable
of incorporating a company within one hour.
Requirements of International Business
Companies
For purposes of this Act, an International
Business Company is a company that
does not:
(a) carry on business with persons resident
in Belize;
(b) own an interest in real property situate in Belize, other than
a lease referred to in paragraph (e) of subsection (2);
(c) carry on banking business unless it is licensed under an enactment
authorising it to carry on such business;
(d) carry on business as an insurance or reinsurance company, insurance
agent or insurance broker, unless it is licensed under an enactment
authorising it to carry on such business;
(e) carry on the business of providing the registered office for companies;
(f) carry on trust business, unless it is licensed under an enactment
authorising it to carry on such business;
(g) carry on collective investment schemes, unless it is licensed
under an enactment authorising it to carry on such business;
(h) hold shares, stock, debt obligations or other securities in a
company incorporated under the Companies Act or under any enactment
amending or substituting the said Act;
(i) subject to subsection (4) below, issue its shares, stock, debt
obligations or other securities to any person resident in Belize or
to any company incorporated under the Companies Act or under any enactment
amending or substituting the said Act; (2) For purposes of paragraph
(a) of subsection (1), an International Business Company shall not
be treated as carrying on business with persons resident in Belize
by reason only that:
(a) it makes or maintains deposits with a company incorporated in
Belize and carrying on a banking business within Belize;
(b) it makes or maintains professional contact with solicitors, barristers,
accountants, bookkeepers, trust companies, administration companies,
investment advisers or other similar persons carrying on business
within Belize;
(c) it prepares or maintains books and records within Belize;
(d) it holds, within Belize, meetings of its directors or members;
(e) it holds a lease of property for use as an office from which to
communicate with members or where books and records of the company
are prepared or maintained;
(f) it owns a vessel or vessels registered in Belize in accordance
with the Registration of the Merchant Ships Act, 1989.
(3) The provisions of the enactments authorising the carrying on of
the businesses specified in paragraphs (c), (d), (f) and
(g) of subsection (1) above shall override any contrary provisions
contained in this Act.
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