|
|
Jurisdictions Belize |
Jurisdictions - Belize
BASIC JURISDICTION INFORMATION Official Name: Belize HISTORY The British began to settle Belize in the 17th century, largely for its attractive forestry resources, particularly tropical hardwoods such as mahogany. After a long period of disputed ownership between Spain and England, marked as well by slave revolts, Belize became the British Colony of ¡°British Honduras¡± in 1871. Universal suffrage was introduced in 1954, and self-government followed in 1964. The country¡¯s name was changed to Belize in 1973. COMMON LAW SYSTEM BASED ON ENGLISH LAW As a former British colony, Belize boasts English as its official language. The legal system is based on British common law, supplemented by local statutes enacted by the House of Representatives. BUSINESS ENVIRONMENT Belize offers a favorable business environment, with few regulations and a minimum of red tape. The communications system is among the best in the region; however, internet service and international calls are expensive. Belize lags behind the more sophisticated jurisdictions in terms of the availability of in-country support professionals, but that is rapidly changing. STATUS WITH INTERNATIONAL AUTHORITIES Belize has filed a letter with the Organisation for Economic Cooperation and Development indicating its commitment to comply with OECD initiatives. It was deemed compliant with international anti-money laundering standards in the Financial Action Task Force¡¯s June 2000 report. Belize does not have a Tax Information Exchange Agreement with the United States. TAX SYSTEM Belize is essentially a tax-neutral jurisdiction for International Business Companies (IBC). It has double taxation treaties with the UK, Denmark, Sweden and the CARICOM countries. Details are as follows: A. Personal Tax B. Corporate Tax C. Withholding Tax D. Capital Gains Tax E. Estate Tax F. Transfer Tax at Death and on Gifts COMPANY REGISTRATION Registered local agents can incorporate companies in Belize within one hour, with papers delivered within 48 hours. As explained above, Belize is a relatively new jurisdiction and, as a result, many names are still available. TYPES OF COMPANIES Belizean laws allow for the following categories of business ownership:
However, almost all offshore or foreign businesses use the International Business Company (IBC) or Trust forms, sometimes in combination. IBCs are governed by the International Business Company Act 1990.
Limited Duration Companies (LDC) Belizean law allows the creation of Limited Duration Companies, which are identical to IBCs in all requirements and stipulations, except that they have a limited life. This restriction on the duration of the company allows LDCs to be considered as equivalent to limited liability companies under US tax law. TRUSTS Belizean trusts are governed by the Trusts Act, 1992, which was designed to incorporate modern and flexible asset protection provisions. A validly established Belize trust may not be set aside on the basis of claims from creditors in another jurisdiction, nor by order of a foreign court on account of divorce, bankruptcy, etc. The Act provides for the creation of most types of trust by oral declaration, an instrument in writing (including a will or codicil), conduct, operation of law, or in any other manner. A unit trust, however, may only be created by a written instrument. A trust (other than a constructive trust) containing land situated in Belize is not enforceable unless evidenced in writing. If desired, a trust may be registered by either the settlor or a trustee, through application to the Registrar. If a trust is registered, a certified copy of the instrument creating the trust (if any) must be submitted. The Register is not open for inspection, except when the trustee provides written authorization for a person to inspect the entry of that trust on the Register. The maximum duration of a trust (other than charitable trusts) under Belize law is 120 years from the date of its creation. Trust income may be accumulated for a period not exceeding the maximum duration of the trust. BANKING FACILITIES Belize¡¯s banking system is governed by the Banks and Financial Institutions Act, 1995, the Offshore Banking Act, 1996, and the Money Laundering (Prevention) Act, 1996. The major local banks although limited in numbers, offer a full range of international banking services, including foreign currency savings and checking accounts earning tax-free interest and operated for the purpose of exchange control on a non-resident basis. Such accounts are offered to IBCs, individuals and trustees. Belize Offshore Banks may be established in one of two categories: ¡°A¡± Class and ¡°B¡± Class. While ¡°A¡± Class banks are unrestricted, ¡°B¡± Class banks are restricted to carrying on such business as is specified in their licenses. Both types of bank are exempt from exchange controls and need to have local offices, but ¡°B¡± Class banks are not allowed to solicit deposits from local residents. Though the Central Bank has received many applications for offshore banking licenses since the introduction of the new legislation, very few have successfully met its requirements. WHY ICS TRUST? ICS TRUST can incorporate International Business Companies and Limited Duration Companies speedily and seamlessly. Based in Hong Kong, ICS Trust (Asia) Limited incorporates companies in Hong Kong and most offshore jurisdictions including Anguilla (Caribbean), where one of our affiliates is a registered agent. ICS TRUST is an independently owned, Hong Kong-registered trust company, also licensed as an Investment Advisor by The Hong Kong Securities and Futures Commission. With more than twenty years experience, we are a market leader in helping Entrepreneurs and Multinationals establish and grow their businesses in Asia as well as providing comprehensive TAX, TRUSTS and TRADE services.
(c)2008 ICS Trust (Asia) Limited. All Rights Reserved. Site Development & Design: ICS Trust (Asia) Limited. Comments & Suggestions: ics@icstrust.com Legal |
| |||||||||||||||||||||||||
