Belize is not only a world-class resort with sandy beaches and a warm climate but also a place where the world’s best offshore businesses are registered. Entrepreneurs flock here to take advantage of an appealing cost of company registration and a favorable British-based legal system. You can choose an IBC or an LLC, but LLCs have been gaining ground in recent years – and we will tell you why.
This is a short post where we will give some fundamentals on Belize offshore companies and show their benefits. However, if you need to delve deeper into the topic of offshores, you can access a mountain of information prepared by our experts in just one click. Discover a wide range of articles there – on offshores, bank accounts, citizenship by investment, and much more.
So, why are LLCs better than IBCs? Here is a list of benefits that an LLC has (in contrast to an IBC):
- No need to apply for TIN
- There are no economic substance requirements you will have to meet
- You are free to keep your accounting records in any country outside Belize
- Hold the general meeting of shareholders in any part of the globe
- LLC is marked “non-risky” under the current OECD and EU rules
- One sole member (foreign resident) can establish a Belize LLC
- You don’t need more than $1 of paid-up capital to set up an LLC
- A Belize LLC can be managed by nominee directors and shareholders hired locally
As you probably understand, an IBC will give you less freedom as you will have to submit annual tax returns, do your accounting in Belize and not outside, and engage auditors. Moreover, if you intend to engage in trade or provide services within Belize, you will be subject to income tax.
With that in mind, we usually recommend that our clients opt for an LLC.
Here are some additional aspects that may be of interest to prospective Belizean entrepreneurs:
Asset protection. Belize is one of the most reliable destinations in this regard. First of all, the legal framework makes it extremely hard for external creditors to get to your assets: the orders of foreign courts are simply not valid in Belize. The creditor will have to file a claim to a Belizean court or abandon the idea. Second, an LLC cannot be obliged to pay its members’ debts, which means that your joint capital will never be used to pay for LLC members’ credits.
Confidentiality. The company charter is the only document you have to submit to the Registry. The beneficial owner’s name or personal data will not be disclosed.
Re-domiciliation. Registration of an LLC in Belize will give you as much flexibility as possible: there are no restrictions on business re-domiciliation from Belize to another country or vice versa.
Requirements for a Belizean LLC establishment. You will have to select a company name in line with the rules, provide a legal address and engage people who will form the company structure. Follow the link above to read more or engage our experts if you feel that you cannot manage on your own.
Finally, an LLC formed in Belize has some limitations:
- You cannot use Belize residents to generate income
- An LLC cannot solely own Belizean real estate
- No investments in the securities of local businesses are allowed
- Your LLC is not allowed to issue any securities in the local resident’s name
We hope that you are just as fascinated by the beautiful destination of Belize with its pro-business environment as us. We will be happy to answer any questions you may have or help you with any aspect of business set-up, including opening an account. You can contact our experts on the portal by clicking on the above link.
May all your business dreams come true!