Forming an offshore company can be a smart choice for several reasons. You may wish to have greater privacy protection for your company, or you may want to reduce your business taxes.
Whatever the motivation behind the decision, you’ll still need to choose where to form an offshore company. Belize is a top pick for many businesses, so find out why this particular jurisdiction in Central America might be the ideal place to setup your offshore company today.
Belize Allows Companies to Retain an Increased Level of Privacy
If you were to ask businesses why they choose to move offshore, you might come across a common answer: Privacy. Many businesses want to retain as much privacy as possible. This is both for the benefit of the owners, the board members, and the shareholders. That’s one reason why Belize is such a popular place to form an offshore company. The International Business Companies Registry (IBCR) of Belize, does not require businesses to file details like names of corporate directors, beneficial owners, or shareholders.
Even after the Account Records (Maintenance) Act was passed in Belize in 2013, offshore companies were guaranteed plenty of privacy and freedom. Businesses must still keep auditing and accounting records, but they don’t have to be stored in a registered office in Belize.
As long as businesses provide an address for the location of these important records, they can be stored absolutely anywhere in the world. This grants an extra layer of protection that many businesses appreciate.
The Belize International Business Company Act Encourages Offshore Business
If you decide to form a business in Belize, you will have a variety of operating structures from which to choose. One of the most popular offshore businesses to form is the IBC, or International Business Company. In 1990, the Belize International Business Company Act was established, and the primary goal of this Act was to encourage more international and offshore businesses to be opened within Belize. Therefore, the terms of the Act are very friendly, making it very enticing for businesses to get their start in Belize.
An IBC is a great vehicle to aid in managing your assets and planning taxes. Particularly appealing about IBCs is their exemption from local taxes as well as those on income, dividends, capital gains, and more. IBCs are even exempt from stamp duty, something that is often required by companies doing business in foreign jurisdictions.
As long as the profits are not being directed at a person who resides in Belize, none of the income or profits will be taxed. This is a tremendous benefit for businesses who are aiming to maximum profit. Their shareholders will benefit, and their value won’t erode due to taxation. In short, operating in a destination like Belize can make businesses a lot more profitable.
Incorporating a Business in Belize is Incredibly Quick
Often, individuals or businesses want to incorporate as quickly as possible. In some jurisdictions, the process of incorporation can take weeks or even months. This can be difficult for those who are ready to move quickly. In Belize, however, establishing an offshore company can take less than 24 hours.
The formation of IBCs can be done in a few hours in some cases and a Limited Liability Company (LLC) can be completed in only a few days. Compared to the processes that can take much longer in other countries, this speedy approach is certainly an advantage for those with approaching deadlines or fast-moving timelines.
Belize Boasts a Stable Country, Government, and Democracy
Starting an offshore company is a decision that often hinges on the future of a specific country. If a country has an economic crisis, or if a new leader changes laws that impact international finance, then the stability and security of the offshore company could be at risk. When business owners plan to establish offshore companies, it is always wise to take the stability of the country into consideration.
Belize is a former British colony, and this democratic commonwealth has become a politically stable country. The currency is pegged directly to the United States Dollar with a ratio of 2:1 and will not change. These are all positive signs for anyone interested in the long-term stability of this nation, its government, and its economy.
English is an Official Language in Belize
When choosing where to form an offshore company, there are a number of important considerations to make. Language often doesn’t play a role in the equation, as English is the language of financial interactions around the world. Nonetheless, it can be incredibly beneficial to have a business in a destination where you can be widely understood.
Belize is a country with two official languages: English and Spanish. Virtually all the residents speak English which is extremely helpful due to mostly everyone who works in the world of international business can speak English fluently. Thus, whether you’re calling to speak to a financial advisor or you have questions for the ICBR or other Belizean businesses or banks, you won’t run into any language barriers.
It is abundantly clear that forming an offshore company in Belize is a smart option for those who wish to increase privacy protection and investment opportunities, whilst minimizing their tax liabilities.
Caye International Bank headquartered on Ambergris Caye island in Belize, is uniquely experienced in helping those who have created various Belize companies to establish their corporate banking needs.
Contact Caye Bank today to set up your corporate account and get answers to questions regarding establishing an offshore company in Belize.
