Asset Protection in Belize using Offshore Entities

Asset Protection in Belize using Offshore Entities

Business investors own different valuable assets which requires protection. Asset protection enhances the growth of the company. One of the way to protect these assets is to open an offshore company in Belize. The jurisdiction provides legal security and privacy for the assets.

Let's learn more about asset protection in Belize using offshore entities.

How to Protect Assets Using a Belize Offshore Company?

Belize offshore company formation is a tool to protect your assets. Two types of company structures are appropriate for asset protection:

  • Belize trust 
  • Foundation 

These two types of offshore companies act as a shield against legal actions and creditors. Let's look at these two legal structures and their use as an asset protection tool.    

 1. Belize Trusts

Belize offers numerous legal regulations. These regulations enhances business environment. According to the laws, the trustee is responsible to protect the assets from the all legal threats.

Belize Trust Structure

A Belize trust has the following roles:

  • Settlor: One who creates and puts assets into the trust
  • Trustee: He is responsible for administering the trust
  • Beneficiary: He benefits from the creation of the trust
  • Protector: He appoints trustees and oversees business operations 

The Benefits of Belize Trust for Asset Protection

The Trusts Act governs Belize's asset protection trusts. The trusts must meet the international standards and come with the following benefits:

  • Asset Protection

The settlor is no longer a part of the assets once they transfer it to the trusts. The creditor can't access the assets afterwards.

  • Privacy

The authority must draft a trust deed for trusts. The public can't access the trust deed.

  • Flexibility

A trust grants various forms of assets. Investment portfolio and life insurance policies are some among others.

  • Control

You can easily control the activities of a trust. Appoint one advisor and control the trust based on your needs.

  • Tax Advantages

Belize offers tax optimization. You don't have to pay corporate tax, excise tax, inheritance tax and income tax and many more.

  • Minimal Requirements

Belize does not have minimum capital limits and stamp duty to start a company. 

 2. Belize Foundation

A foundation is a form of offshore company used for asset protection. A Belize foundation is a separate legal entity established by a founder. The founder puts assets, such as a company's ownership or shares and many more. 

A Belize offshore foundation protects your assets. The company eliminates probate and inheritance tax and can help in the quick transfer of assets.

The Framework of the Belize Foundation

Here are the different roles in a Belize foundation:

  • Founder: A founder creates the foundation and can be more than one person, an individual, or a corporate body.
  • Foundation Council: The council is responsible for managing and representing the foundation with all third parties.
  • Protector: The founder appoints the protector. They ensure the legalities of the company.
  • Beneficiaries: These are the ones who benefit from the foundation. The foundation's charter included their name. 

The Benefits of Belize Offshore Foundation

Belize Foundation has the following benefits:

  • Total Asset Protection

The company becomes the owner when the founder gives the asset to the foundation. The creditors can't reach the assets.

  • No Taxation

You don't have to pay any tax for the assets put in the company. The country will not demand any tax even the assets are from outside.  

  • Privacy

The public can't access the personal information of all the members. 

  • Foreign Ownership

There is no requirement of the founder, beneficiaries or the assets to be of the same country.  

Choosing between a trust and a foundation is a complicated decision for the business owners. It requires professional assistance from a business consultancy such as  Business Setup Worldwide.

How Can We Help?

Our consultants are knowledgeable about the structure of an offshore company in Belize. We will provide you with a suitable option for your asset protection. From Belize business registration to renewal, we can provide all services in one place. Contact us to get our affordable packages.

FAQs

What is a foundation charter?

A foundation charter is an official document drafted during foundation incorporation in Belize.

Do I have to register an office for a Belize foundation?

Yes, a registered office is mandatory for a Belize foundation.

What kind of assets are kept in a Belize asset?

Real estate property, bank accounts, shares, stocks, and investment portfolios can be put into a Belize trust.

Which legal system protects the Belize trust?

The English Common Law.