Incorporating in BelizeNov 11 • Categorized as Asset Protection
by Jay Butler, Asset Protection Services, SRL
In 1996, the United States of America tried to pressure the sovereign nation of Belize into signing the Mutual Legal Assistance Treaty (MLAT). Belize refused as such a treaty would allow for the exchange of confidential information, such as bank records and other sensitive information, based on a broad range of requests including tax investigations.
Belize did sign a limited Legal Assistance Treaty with the U.S. where client information would only be disclosed under internationally recognized grievous crimes such as drug trading, terrorism and human trafficking. At the time, Belize was wrongfully accused of harboring money-launderers and was “blacklisted” by the United States of America, suffering unjust restrictions of foreign aid, world political isolation and an economic crisis.
Belize would not give in to such tactics and by upholding their commitments to the banking “know your client” regulations, Belize was eventually exonerated. By standing their ground to the world’s super-power, Belize has emerged as a credible and secure offshore asset protection and tax haven.
A Belize International Business Company (IBC) is a tax-free company designed to engage in international business transactions with strict owner privacy laws, minimal record keeping and no reporting requirements. Since the introduction of the Belize International Business Companies Act in 1990 (Amended in 2000), tens of thousands of IBC’s have been formed and registered. Belize is heavily invested into its incorporation services industry with a modern computerized IBC Registry capable of processing a company registration within an hour.
An International Business Company is suited for management consultants, network engineers, software developers, professionals who tend to travel between various countries on short-term assignments, internet based businesses, international commodity trading, investors and financial transaction businesses. A Belize IBC may be used as a personal asset protection vehicle to passively hold property and investments.
Where any foreign government authority, by way of nationalism, expropriation, confiscation, force or duress or similar action; or by imposition of any confiscatory tax, assessment, or other governmental charge, takes or seizes any shares or other interest in a Belize IBC, the company may apply to the Court in Belize for a court decision ordering the company to disregard the attempted seizure and continue to respect the rights of the shareholders of the Belize IBC.
A Belize International Business Company is not required to prepare or file any financial accounts. A Belize IBC is free to arrange its business accounts in any manner fitting to establish and maintain reasonable accuracy of the company’s financial position. The annual government licensing fees in Belize are $100 provided the authorized capital is under $50,000. If the authorized capital exceeds $50,000 then the annual government licensing fee is $1,000. Should any “no par value” stocks be issued the annual government licensing fee is $350.
Belize is a member of the British Commonwealth, United Nations, WTO, IMF and other international organizations. By legal definition under the Belize International Business Companies Act, a Belize IBC and its shareholders are not subject to any tax derived from any income on all dividends, distributions, interest, rent, royalties, compensations, transfers of property, transactions of shares, debt obligations and other securities by persons who are not residents of Belize.
Belize is unique in Central and South America in that English is the official language. This fact makes international business and tourism favorable for attracting many Americans, Canadians and Europeans to Belize over Spanish speaking countries.
If you’re looking for a jurisdiction in which to incorporate, then consider incorporating in Belize.
If you would like to schedule a free 30 minute consultation to learn how a Belize IBC can benefit you, please contact us today.
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