Belize IBC Formation by New Rules in 2023: Package and Optional Services

Register IBC or LLС in Belize remotely. To streamline the process, you can order our package services. If you rely on our experts’ guidance and support, you will soon celebrate your Belize IBC formation and the delivery of your corporate papers: the Certificate of Incorporation, the Memorandum and Articles of Association, Appointment of the Director and the Consent Agreement, the Inaugural Resolution, the Register of Directors and all members, the Share Certificate(s).

IBC (International Business Company) is a popular offshore private business entity type. It can be opened in Belize on favorable terms. Since January 2022, new norms have been in force regarding IBCs’ economic substance (the real presence in the jurisdiction), tax liabilities, and some other stipulations. All such companies that are formed in Belize and do not have permanent tax residency in other jurisdictions are required to comply with the following requirements:

• pay taxes in Belize and file annual tax returns 
• conduct audits, file financial and accounting reports
• have a registered office and prove the economic substance in Belize
• declare any profit, including foreign revenues
• obtain a TIN (Tax Identification Number).

Belize IBCs with tax residency in other jurisdictions need to prove the payment of foreign taxes. 

There are penalties for failure to comply with all legal requirements.

Who needs Belize IBC formation?

You can draw many benefits from your Belize IBC formation if your business is in any of the following fields:

• e-commerce
• international trade
• Trust/Fund asset management 
• storage of movable and immovable property
• financial services, including banking, insurance.

Belize IBCs operating in the above-mentioned areas need to be licensed, registered as Belizean tax residents, have a TIN, prove the economic substance, submit fiscal and audit reports,  and comply with other requirements.

Please note: if your business refers to other areas, or if you prefer more perks (tax exemption, no obligations to obtain a TIN, no requirements for economic substance, etc.), you should consider registering a Belize LLC.   

New regulations on Belize IBC formation in 2022

To understand exactly the new requirements and adjust your business plans accordingly, you should consult a professional expert. Unfortunately, too many online resources on Belize company registration are misleading and outdated!  This is because the current regulations have been only recently revised. 

You need to see the difference between requirements set for IBCs and LLCs, resident and non-resident businesses, local and foreign tax residents, etc. Most amendments address local companies, their tax residency, business management, licensing, premises, staffing,  other matters. Stipulations for non-resident Belize businesses have also been updated. There are many nuances to consider before you decide which type of entity suits you best. 

Please note: if the Belize IBC’s founder declares its residence in a country blacklisted by the EU, the company will be automatically deemed a tax resident of Belize.

Economic substance of Belize IBCs

The Belize Tax Law (Income and Business Tax, (Amendment) Act, 2021) stipulates new rules for taxation and the economic presence of international business companies (IBC) in 2022. 

Belize IBCs are now required to file information to IFSC (the International Financial Services Commission of Belize) in the format prescribed by Law № 15 of October 11, 2019 (Economic Substance Act, 2019). Failure to comply with this rule may lead to the removal of the legal entity from the register, as well as a penalty of up to $75,000.

Business tax and reporting requirements set for Belize IBCs in 2022

In 2022, international offshore companies resident in Belize must pay the worldwide income tax, have the right to carry on business with locals, and their operating expenses are not tax-deductible any longer. Besides, there are other new provisions. 

Please note: The above-mentioned amendments apply only to resident IBC companies in Belize. If non-resident offshore companies can prove their foreign tax residency, they do not have to pay taxes in Belize.

Financial statements and auditing of Belize IBCs

Belize IBCs are required to file financial statements, maintain accounting records and convene shareholder/director meetings locally. Financial reports are subject to audit if the profits exceed $6,000,000. However, the tax authorities of Belize have the right to request, on some occasions, an audit of certain financial statements.

Penalties for the failure to meet the new rules:

• the penalty for Filing a Tax Return Late is 10% per month of the tax amount owed
• the Late Payment penalty is 1.5% of the overdue amount per month.

Belize IBC formation: how to register remotely

If you are sure that the best decision for you is to register an IBC in Belize remotely (though we advise that the easiest and more advantageous way is to register a Belize LLC), you are welcome to rely on our experts experience and assistance. 

The procedure of offshore business registration in Belize via our experts is quite simple. If you request professional help with the  Belize IBCs formation, our fee starts from rdp_services ids=”1200811″]. This will include the following package services:

• the state registration fee
• services of a registered licensed agent in Belize
• an office (legal address) in Belize
• a set of corporate documents in the original, plus their apostilled copies
• worldwide express mail delivery.

How much is Belize IBC formation?

The minimum fee for our package services of your Belize IBC formation via our experts is rdp_services ids=”1200811″].

Optional arrangements and services of any kind available for an extra fee include:

• opening of a corporate or personal current account with a payment system, new bank, or a European bank for Belize-registered companies or shareholders
• Professional Director recruitment, the contract renewal
• notary services and apostille 
• registration of directors or members in the Business Register
• Minutes (drafts) of meetings
• Power of attorney
• Declaration of Confidentiality
• Certificate of Good Standing 
• Tax exemption certificate
• company name change and the Charter fund registration/amendments 
• replacement of officers and directors/managers (including drafts and amended registers)
• transfer of ownership.
• transfer of company domicile
• reinstatement of companies previously removed from the Registry (within 6 months).

The first one-on-one online consultation is FREE.