Types of Business Structures in Belize

Business Structures in Belize

Belize, a tax haven for offshore businesses, offers a straightforward process for company setup. This process ensures legal recognition and provides a clear roadmap for business operations.

An entrepreneur can choose legal structures such as Limited Liability Companies (LLC), International Business Companies (IBC), Foundations, and Trusts for Belize offshore company formation.

Let's take a detailed look at each of them.

  1. LLC (Limited Liability Company)

A Limited Liability Company (LLC) combines the benefits of a partnership and a corporation and is the most common business structure used in Belize. The Belize LLC provides privacy to members and is also considered the perfect tax planning and asset protection vehicle for an offshore business.

The following are the benefits of choosing a Limited Liability Company in Belize.

  • LLC is exempt from taxes such as income tax, capital gains tax and dividend tax.
  • LLC provides asset protection and maintains the privacy of the owners.
  • Company incorporation can be completed within 2-3 days.
  • LLC is considered a separate legal identity.
  1. IBC (International Business Companies)

An International Business Company (IBC) is a legal structure which helps companies conduct business internationally. This structure is used by large businesses due to its flexible nature.

The Belize International Business Company (IBC) offers a diverse platform for offshore investors, empowering them to engage in activities such as asset protection, opening bank accounts and conducting international transactions.

The benefits of IBC in Belize include:

  • An IBC is exempt from income and corporate tax generated outside Belize.
  • Belize IBC comprises a simple incorporation process.
  1. Foundation  

This legal entity can be formed by a foreigner and will be able to control the management and beneficiaries. It can hold assets in its name instead of the owners, making it ideal for asset protection.

The following are the benefits of the Belize Foundation:

  • The foundation helps in the faster transfer of assets 
  • Foundations are exempt from inheritance taxes.
  1. Trust

Establishing a trust can safeguard your wealth from creditors and other financial risks. A well-structured offshore trust can offer greater control over the trust and will reduce the barriers to asset protection.

There are three participants in the trust:

  • Settlor – The settlor creates the trust and allocates assets. 
  • Trustee – The trustee manages the trust.
  • Beneficiary – A beneficiary gains benefits from the assets allocated to the trust.

The benefits of opting for Belize offshore trust are:

  • It provides robust asset protection
  • Investor anonymity is maintained 
  • It can be established and maintained at affordable costs

These are the different types of legal entities used for Belize company incorporation.

If you need more assistance with company formation, get in touch with Business Setup Worldwide. The experts at BSW will help you resolve your business queries.

FAQs

Why do entrepreneurs choose Belize as their preferred business destination?

Entrepreneurs prefer Belize for company incorporation because of its flexible tax regulations, strict banking laws and stable business environment.

Is it necessary to file accounts for a Belize offshore company?

There is no requirement to file accounts for a Belize offshore company.