Belize Vs Seychelles: Best Location For Starting A Holding Company

Best Location For Starting A Holding Company

Choosing a holding company is a popular choice for company formation in offshore jurisdictions. Protecting the assets of the business is very important and one of the most popular strategies among investors is to set up an offshore holding company.

Apart from Setting up an offshore holding company, choosing the jurisdiction is crucial for offshore company incorporation. Belize and Seychelles are some of the best offshore locations in terms of asset protection. 

Defining Holding Companies

An offshore holding company, also known as an umbrella company, is a structure that preserves and controls the stocks of businesses located in other jurisdictions. The holding company advises on decisions made regarding the shares of the subsidiary company. 

Advantages of Holding Company

Holding companies offer several advantages to entrepreneurs like you. 

  • By separating the assets and liabilities of the subsidiary and the parent company, you can avail yourself of the benefit of asset protection. 
  • You can also plan your taxes by implementing strategies that consolidate the profits and losses of the subsidiary. 
  • These companies have a flexible corporate structure which makes it easy for them to acquire new ventures. 
  • Strategic initiatives can be implemented with ease across the organisation because of a centralised control and governance structure. 

Characteristics And Requirements of Holding Companies in Belize vs Seychelles

Both jurisdictions have similar requirements and functionalities for Holding companies. Let's have a look at the characteristics and requirements in these two jurisdictions:

  1. Seychelles

  • Streamlined Administration: Companies in Seychelles benefit from the absence of annual account filing requirements, reducing administrative burdens.
  • Confidentiality and Flexibility: The jurisdiction prioritises confidentiality and offers a flexible management structure for businesses.
  • Focus on External Subsidiaries: Subsidiaries of Seychelles IBCs must be located outside the jurisdiction.
  • Resource Utilization: Seychelles IBCs can utilise the resources of their subsidiary companies.
  • Shareholding Flexibility: An IBC can be the primary shareholder of a business or participate as part of a larger shareholder group.
  1. Belize 

  • Restrictions: Real estate ownership, banking activities and local resident ownership of holding company shares are prohibited.
  • Strengths: Strong asset protection laws make Belize a popular choice for holding companies.
  • Structure: Holding companies are typically International Business Companies (IBCs) and must have subsidiaries located outside Belize.
  • Taxation: Exempt from Belizean taxes, but relevant licenses are required before operation.

Both jurisdictions offer similar advantages for holding companies. The primary difference lies in the licensing requirements and the way in which assets can be held by the parent company. The optimal location depends on the needs of the business. Having a proper in-depth understanding will make your entrepreneurial journey better. Our consultants at Business Setup Worldwide (BSW) can provide a thorough analysis to help you select the ideal location.

Why Choose BSW?

Business Setup Worldwide has assisted successful entrepreneurs in setting up their businesses across various jurisdictions. Our business setup consultants will make sure the business faces no issues in the future. Get in touch with us by booking a free consultation. We’d be happy to assist you!