Belize is a scenically beautiful, independent country located on the Caribbean seaboard of Central America. It has an area of approximately 9,000sq miles being 174 miles as its longest point and 68 miles at its widest point. The total population is estimated at 50,000 with the major commercial center being Belize City with a population of 70,000. The population of Belize is ethnically diverse and it includes descendants of the original Mayan culture and various mixtures of Caribbean people, Caucasians, Chinese and East Indians. The climate is sub-tropical with an average temperature of 80°F.

Belize has a long history of peace, stability and democracy. It became a British Crown Colony in 1862 and achieved complete self-rule in 1981. The political system is based on the British Westminster model with Queen Elizabeth II being represented by a Belizean Governor General. Executive authority is exercised by the Cabinet under the leadership of the Prime Minister subject to the approval of a 28-member House of Representative elected by universal adult suffrage every five years. In addition, there is an eight-member Senate with the majority appointed on the recommendation of the Prime Minister. There are two main political parties.

The law of Belize derives from English Common Law, supplemented by local legislation. The court system is also similar to that of England, and contract and commercial law is based on the English law model.

The local currency is the Belize dollar which is tied to the US dollar with a fixed exchange rate of BZ$2 = US$1.There are four commercial banks: The Belize Bank Limited, Barclays Bank PLC, The Bank of Nova Scotia and Atlantic Bank Limited. Commercial banks are regulated by the Central Bank of Belize in accordance with the provisions of the Banking Act.

The Philip S.W. Goldson International Airport near Belize City, provides daily services through five international carriers to the US and Central America. Telephone, telex and telefax communication to and from Belize are excellent and direct telephone dialing facilities are available. International courier services are well established. English is the official language, but Creole and Spanish are also spoken widely. Belize has a literacy rate of over 90%.

Agriculture constitutes the major economic activity based on sugar, citrus, and banana exports. However, there is an increasing contribution from tourism and the offshore industry. Other significant exports are garment and marine products. Belize also benefits from a number of preferential marker access arrangements, especially with the US, Canada and, through its British links, the European Community.

The Offshore Industry

The offshore industry is a rapidly growing and increasingly important sector of the Belizean economy, dealing in the provision of offshore services to a non-resident clientele. The services offered in Belize include international business company formation and administration; trust formation and administration; international banking services including foreign currency bank accounts and international Visa cards; fund management accounting and secretarial services; captive insurance, and ship registration.

International Business Companies Act, 1990

The International Business Companies Act 1990 was based on the very successful British Virgin Islands model.

Regulation and administration. The office of the Minister of Budget Management, Investment and Trade, Minister responsible for International Financial Services assumes responsibility for overseeing the formation and administration of offshore companies assisted by a government appointed Registrar. The Registrar of International Business Companies is in turn, assisted by a Deputy Registrar, who is authorized to perform registrar services and to facilitate the growth of Belize’s offshore business.

Attributes of an IBC.

  • Method of incorporation: By filing a Memorandum and Articles of Association with the appropriate fee with the Registrar of International Business Companies.
  • Speedy and simple incorporation: IBCs take approximately one hour to incorporate.
  • Who may incorporate? Subscribers may be personal or corporate; nominee shareholding is also permissible, through services of local registered agents.
  • Incorporation costs and fees: For IBCs, incorporation (including government’s and agent’s fees) US$700. Annual fee for registered office and registered agent (including government fee) US$300. Nominee director’s fees approximately US$300-US$400.
  • Articles of Association: Can be adapted to the needs of the company.
  • Taxation: Total exemption from all forms of local taxation including stamp duty.
  • Exchange control: No exchange control as IBCs are treated as non-residents for exchange control purposes.
  • Capital requirements: No minimum paid-up capital requirements. IBCs may issue bearer shares and shares without par value.
  • Directors and secretary: IBCs must have a minimum of one director, who may be an individual or corporation. A secretary agent in Belize.
  • Registered office and registered agent: IBCs must have a registered office and registered agent in Belize.
  • Filing requirements: IBCs are not required to file details of shareholders, directors or accounts or carrying out an audit. The only information available to the public at the Registry being the company’s Memorandum and Articles of Association and Certificate of Incorporation.
  • Meetings of the Board of Directors: Directors may meet when preferred and meetings may take place outside Belize.
  • Migration: IBCs may migrate into and out of Belize depending on the company’s planning needs.

International Banking

Foreign currency bank accounts: The major local banks offer a full range of international banking services including foreign currency savings and checking accounts earning tax-free interest and operated for the purposes of exchange control on a non-resident basis. Such accounts are offered to IBCs, individuals and trustees.

The Future

The Government of Belize has always endorsed and supported the development of the offshore industry and also recognized the tremendous prospect for growth within the sector. The government is presently working closely with the Belize Offshore Practitioners Association in drafting future legislation concerning offshore banking, captive insurance, limited duration companies, protected cell companies limited partnerships, and other instruments which will enhance even further, Belize’s reputation as a premier offshore services centre.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.