Belize offshore company in 2023
The advantages of a Belize offshore company
- Belize offshore companies enjoy multiple tax advantages under the IBC Act 1990 including:
- Complete exemption from local income tax on all international sources of income;
- Absence of withholding taxes on dividends, royalties and interests paid by a Belize IBC to both resident and non-resident entities;
- Exemption from capital gains tax and stamp duty on transfer of shares, corporate property and other financial instruments;
- A Belize IBC is additionally not required to file annual tax returns or any declaration or report to the Belize government with regards to income sources;
- The offshore entity is also not subject to any exchange control regulations and is therefore permitted to repatriate funds abroad without restrictions.
- Our Clients establishing a Belize offshore IBC will also enjoy additional advantages including:
- The country’s modern offshore legislation provides for maximum flexibility in global investment planning and asset protection;
- A Belize IBC can be established by just one individual of any nationality and residence who can be both shareholder and director of the company and wish a share capital of US$1 only;
- The offshore legislation provides for complete anonymity as disclosure of the company directors and beneficial owners is not required;
- Although the company is required to maintain accounting records within or outside of Belize, there are no statutory requirements for audit;
- The Belize IBC is additionally not required to appoint a local company secretary and does not have to hold annual general meetings;
- The legislation permits the use of nominee shareholders and directors and any change of the same does not need to be filed with the Belize Companies Registry.
Best uses of a Belize IBC
- A Belize IBC is a perfect business vehicle for offshore investment activities, asset protection and offshore banking. The entity can be used as holding company for intellectual property, real-estate and franchising among other activities;
- The offshore entity is also recommended for a number of business activities inducing international trading, consulting services and offshore online businesses.
General disadvantages of offshore company setup
- Although anonymity is a major benefit to offshore companies, the same can be a disadvantage when proof of beneficial ownership is required by either a bank or a foreign government institution;
- Most international banks perceive offshore company negatively due to the host country’s tax neutral nature and may decline opening corporate bank accounts for such companies;
- Offshore companies generally to not have access to the country’s existing double taxation avoidance treaties hence may be subject to standard applicable corporate taxes in countries they intend to conduct business;
- Global banks tend to conduct more thorough due diligence on offshore companies and request additional corporate and personal documents to ensue tax compliance when opening offshore accounts;
- Due to their offshore nature, most jurisdictions restrict such entities to specific limited activities. For instance, some jurisdictions do not permit offshore companies to provide financial or insurance services;
- Whilst the concept provides privacy, lenders, investors and financial partners may be hesitant to provide financial assistance to a business they are unable to determine its actual worth;
- Setting up an offshore company can also be costly as some jurisdictions require entities to either appoint resident directors, local agents or locally based auditors.