Belize is one of the best offshore jurisdictions to start an LLC, and it is second to none when it comes to asset protection. The requirements for an LLC establishment in Belize are not very tough, and you can complete the procedure remotely with the help of our experts. This is a low-tax jurisdiction, so you will not have to pay much if you generate 100% of your profits abroad. Belize is good if you are on a tight budget as you will not need to comply with economic substance requirements (rent an office, hire local staff, or take any other steps to prove your ties with the country). Sounds good? In this post, we will also provide our rationale for choosing an LLC rather than an IBC.
We would like to invite you to our portal called International Wealth. Look here if you are interested in international business, banking, investments, asset protection, and so on. We have a wide network of partners and agents in different jurisdictions, which allows us to help entrepreneurs and individuals from across the globe set up companies and accounts remotely, and we share the latest goings-on and useful tips with you on the portal. You can contact our expert to discuss the details or choose a suitable jurisdiction for your needs (it’s free!). You can also delegate all the administrative steps to us and focus on your business or day-to-day activities.
Business in Belize: Advantages
Let’s see what other benefits (in addition to those mentioned above) you may have if you decide to opt for Belize:
- If all your income is derived outside Belize, you are totally exempt from capital gains tax, income tax, withholding tax, asset tax, business tax, inheritance tax, and any other local taxes.
- If you hate the formal elements of company management like the submission of financial reports, we have good news for you: if you are a Belize company owner, you will not be obliged to file any tax returns, financial reports, or hold annual general meetings.
- There is no need to get a Tax Identification Number.
- The company can be fully owned by a foreigner.
- The liability of members is limited by their contribution to the company.
- The company’s structure and activities can be planned in different ways as Belize laws provide a lot of flexibility.
- The minimum share capital threshold is not set, so you can start with 1 dollar.
- Company members are not required to pay any duties and are not subject to currency control.
- Each company member is liable for the taxes on its assets as an individual based on the laws of his/her country of residence.
- Belize offers really strong asset protection based on the fact that its courts do not recognize the decisions of foreign courts. It practically means that if any creditor wins a lawsuit against you or your company and wants to claim its assets, he/she will have to start the proceedings all over again in a Belize court. This is not the only barrier available, and our experts will be happy to tell you about some other features that will keep your assets intact. However, it keeps 99% of creditors away.
- If privacy is important for you, Belize will be a good choice as the personal information about beneficial owners is not disclosed. The only document you file with the Registry is the company’s Articles of Association.
- You can re-domicile your existing company to and from Belize.
If you have any questions at this stage, feel free to follow the above link and get in touch with us.
LLCs and IBCs in Belize
We recommend forming an LLC in Belize rather than an IBC, and here are the main reasons why it is a more beneficial structure:
- An IBC is required to obtain a TIN, while an LLC is not.
- IBCs have to meet substance requirements, while LLCs do not.
- IBCs have to keep their company documents in Belize and have them audited, while LLCs can keep them in any country and can do without auditing.
- The new rules and regulations adopted by OECD do not mention an LLC as a risky form of business, while the BC is considered risky.
- You need just one foreigner to set up an LLC in Belize.
- IBCs are subject to minimum share capital requirements, while LLCs are not.
- LLCs are allowed to use nominee directors and shareholders.
Requirements for Belize LLCs
Here are the basic requirements you will have to meet:
- You cannot use the words like insurance, bank, securities, trade, and so on in the company name.
- You will need a local office and an IFSC-licensed registered agent.
- Your company will need to have at least one member and a manager (these can be residents of any country, individuals or legal entities).
- A secretary’s position is not mandatory for Belize LLCs.
- Your company will not pay any local taxes if all income comes from outside Belize and none of the board members is a Belize resident.
- You are under no obligation to declare your worldwide income, but you will be required to pay a state fee when you renew or register a company.
- Your documents (financial reports, and so on) can be kept in any country, and there is no requirement to have your accounting records audited.
Belize LLCs: Limitations
LLCs are prohibited to do the following in accordance with the Belize International Companies Act:
- Obtain income from the residents of Belize
- Own any securities of a local legal entity
- Issue its own securities in the name of a local resident
- Possess property as a sole owner
If there is something critical for you, do not hesitate to click on the above link and ask our experts a question.
You can set up a Belize LLC remotely with the help of our experts! There are only 4 steps you have to take:
- Follow the above link to our portal and contact our specialists.
- Discuss the services you need.
- Collect the required package of documents.
- Pay the cost of our services.
Then you will need to wait for the registered agent to submit your documents and get back all the company documents that will be sent to you by post.
Do not hesitate to get in touch with us if you have any doubts or see that Belize is not suitable for you: our experts are sure to find the jurisdiction you need!