Belize is an English speaking Central American country of 8,867 square miles and 194,000 people, previously known as British Honduras, this former colony of Great Britain gained its independence on September 21, 1981. The government is considered responsible, but there is some doubt that political stability really exists in Belize. 

Located on the eastern Caribbean coast south of Mexico and east of Guatemala, Belizean countryside is replete with beautifully undulating rivers a terrain of mountains and a lush tropical rainforest. 

Belize is probably best known as one of the deep sea diving and fishing capitals of the Caribbean. The largest barrier reef in the western hemisphere is found just off the Belizean coast. Fisherman and divers will tell you the reef is one of the most prolific in the world. 

Bananas, sugar cane and citrus fruit alone are not enough to sustain the Belizean economy. Like many small countries dependent on basic commodities, Belize’s government realized the need for tax-reforms to boost foreign investment. Shortly after independence, Belize’s leaders began to introduce legislation to make Belize attractive to foreign investors. The new legislation followed much the same format as found in the other British style tax havens of Cayman, the British Virgin Islands, the Bahamas and Bermuda. 

Belize has been trying to become an offshore financial center for some time. According to Jose Alpuche, second secretary to the High Commission of Belize in London, many foreign businesses may qualify for tax holidays under the Belize Development Incentives Ordinance. 

International Business Companies (IBC’s) 

Belize introduced its own International Business Companies Act in 1990. IBCs registered in Belize are granted freedom from all local Belizean taxation. Because Belize’ corporate income tax rates are relatively high – reaching 35% - registering under the new IBC Act is the only way to go. 

The Belizean IBC Act was modeled after the 1984 act of the British Virgin Islands and the 1989 IBC Act of the Bahamas. The Belize IBC Act has some cost advantages over the BVI IBC Act, but annual government registration costs are slightly higher than under the Bahamas IBC Act. 

The Belizean registrars office is computerized and modern. An IBC can be listed in the government’s Registrar with only a one-hour turn-around. This compares with 24 hours in the BVI and the Bahamas, and a week or longer in Bermuda. Practically speaking, the turnaround advantage over the BVI and Bahamas is of little real significance. 

As is called for under the BVI and Bahamian IBC Acts, Belizean companies must maintain a registered office and registered agent within Belize. Start up costs, which include a registered office, registered agent and local directors start out at $700 but go higher, and these costs are comparable with fees in both the Bahamas and BVI. 

The International Business Companies Act, 1990, provides that any person may singly, or jointly with others, form an IBC by subscribing to a Memorandum and Articles of Association. IBCs are granted freedom from all local taxation. 

An IBC need have only one shareholder, which may be an individual or corporation. Only one director is required and it too may be a corporation. 

Meetings of shareholders and/or directors may be held in any country, at any time, and may be attended by proxy. 

Registered or bearer shares may be issued with or without par value. Shares must be fully paid but capitalization is minimal. 

No-accounts or information concerning the identity of shareholders or directors is required to be filed or made a matter of public record. The company’s shareholder register may be inspected only by a shareholder or by order of a Belizean court at the request of a shareholder. 

The IBC’s company name may be in any language but must include the words “Limited”, “Corporation”, “Incorporated”. “Society Anonyme” or “Society Anonima” or their usual abbreviations. There are no accounting or audit requirements”. 

As in the Bahamas and the BVI, an IBC registered in Belize cannot (1) do business inside Belize with persons resident in Belize; (2) own an interest in real property situated in Belize, other than a lease of property for use as an office from which to communicate with members or where books and records of the company are prepared or maintained; (3) carry on a banking business; (4) carry on a business of insurance or reinsurance company; (5) carry on a business of providing a registered office for companies. 

Ships can be registered under Section 3 of the Merchant Ships Act of 1989 and then become listed on the International Merchant Marine Registry of Belize (IMMARBE). The registry was established to offer ship owners and operators a modern ship’s registry based on fast and efficient service, reasonable fees and a high standard of safety. 

IMMARBE’s head office is located in Belize City with designated satellite offices located in main ports and shipping centers of the world. These offices are empowered to process applications and issue all necessary documents related to the registration of vessels under the Belizean flag. 

The Registry of Belize is open to any type, class or size of vessel used for navigation that is engaged in any lawful trade, service or international maritime activity including but not limited to dry cargo, tankers, passenger ships, oil rigs, supply boats, barges, stationary storage vessels, non-self-propelled vessels, fishing vessels, submarines, yachts or pleasure boats. Vessels may be registered at the head office or at the designated office via FAX or telex communication. 

Vessels registered under IMMARBE may, in order to comply with the terms of the charter contract, obtain a second registration in another country without affecting their status with IMMARBE. 

In March of 1992, Belize introduced the Belize Trust Act, 1992. Trusts formed in Belize can have a life of 120 years. There is an option to convert trusts of finite duration to charitable trusts with indefinite duration. Provisions relating the appointment of protector of the trust and the payment of trustees are included in Act. 

Trusts need not be registered with the Belize government, but trusts may be registered when necessary. A trust can be switched from another foreign jurisdiction into Belize. The local rules that apply to the settlor’s community can be adapted when such trust transfers are implemented. 

Belize already has a professional body of attorneys, accountants and administrators who will undertake the task of establishing and administering the new system. The Belizean legal system provides for the right of appeal to the Privy Council in London, which will be regarded as an important safeguard by some settlers. 

Offshore Belizean trusts are exempt from all taxes and duties, including income tax, estate tax and exchange controls. 

The Belize legislation also offers advanced asset protection facilities against creditor and foreign revenue services similar to those already in existence in the Cook Islands, Bahamas, Cayman and British Virgin Islands. 

The new Belize Trust Act of 1992 was passed by the National Assembly of Belize in March. While the Belize Times declares the new legislation would establish Belize as a “major offshore financial center in the world”

And “blazes a new trail and uniquely stands as a model of trust law”, this is probably a premature overstatement. New Trusts and Trustee Acts exist in most all the major tax havens, and competition remains fierce. 

Only a handful of trust companies have set-up operations in Belize – the most prominent being the Baron Bliss Trust Fund.

Find the contact names, addresses, numbers and information for local government offices, banks, accountants, company formation services, investment and management companies, advisors, experts, maildrops, real estate agents and other useful local contacts in the THE OFFSHORE MANUAL & DIRECTORY.