Belize is renowned for its International Business Companies (IBCs), boasting over 15,000 IBCs on its shores. While IBCs are prevalent, Belize also offers various other business entities. Fionza Consultants, with extensive experience, guides you through the process of selecting and incorporating the most suitable business entity in Belize.
Step 1: Choosing a Suitable Corporate Entity
Before engagement, Fionza Consultants comprehensively understands your business, recommending an optimal business entity considering factors such as business activity, tax obligations, and the nationalities of shareholders and directors.
A basic form for small businesses, offering easy start-up and complete control. Proprietors can register with the Income Tax Department to obtain a Taxpayer Identification.
Public Investment Companies
Established under the IBC Act, offering tax exemptions for up to thirty years. Requirements include a minimum net tangible asset value, gross tangible asset value, net income, local business operation, employment generation, and listing on an Approved Stock Exchange.
Limited Life Companies
Also known as Belize Limited Duration Company, offering a fifty-year lifespan, continuously renewable. Exempt from taxes, providing flexibility for any legal business. Members and managers need not be residents.
Limited Liability Partnership
Directors are not personally liable beyond specified liability insurance. Offers flexibility in managing organizational affairs. Requires a listed office in Belize and accounting record maintenance for five years.
Unincorporated associations allowing separation of legal and beneficial ownership. Optional registration with the Belize Registrar for a maximum duration of 120 years.
International Business Companies (IBCs)
Managed by the Belize IBC Act, providing full tax exemptions and no annual filing requirements. Recent legislation allows IBCs to conduct local business, own land, and hold shares in domestic companies, subject to new economic substance requirements.
Accounting and Tax Obligations
Outsourcing accounting and tax obligations to Fionza Consultants ensures timely completion without the need for travel. Compliance with financial statements, corporate tax returns, and audits are managed efficiently, reducing overhead costs.
Annual Reporting Requirements
Companies maintain accounting records for a minimum of five years at their listed office or Agent’s office in Belize. Compliance with International Financial Reporting Standards includes preparation of financial statements and accounting records.
IBCs physically present in Belize or engaging in licensed activities must file monthly business tax returns. Tax exemptions apply for income below US$37,500; otherwise, rates range from 1.75% to 19%. Qualification for tax exemption involves restrictions on local business and profits within the jurisdiction.
Fionza Consultants’ dedicated team ensures compliance, efficient reporting, and informed tax strategies for your Belize-incorporated business.