Belize Company Formation Frequently asked questions (FAQs)

Belize is a world-famous offshore jurisdiction, with all the advantages that entails:

• Tax free for profit, dividends, added value, interest
• No restrictions on company owners and directors’ residency
• No requirements for financial reporting & audit.
• Disclosure of information about owners and shareholders.
• In Belize, there is no currency control.
• The governing law is based on English law.
• Belize is one of the offshore jurisdictions on the 'white list’ as FATF and OECD do not impose sanctions on Belize.

Belize, in general, is a good jurisdiction to form an offshore company. Therefore, knowing how to register a business name in Belize is highly recommended by One IBC before starting doing business there.

For more information about business name registration in Belize, please contact us via Hotline +65 6591 9991 or email [email protected].

The Belize business tax rate varies depending on the type of income and is set forth in the principal act's ninth schedule (IBTA).

Furthermore, Belize business tax is not applicable in the following cases:

• Companies that engage in petroleum operations.
• If the revenue or income is derived outside of Belize, IBCs operating in a trade, business, or profession are exempt from Belize business tax.
• Companies operating under the Designated processing area (DPA).

In order to be qualified for business tax exemption, IBCs must provide documents and proof of their foreign-sourced revenue/income. For further guidance, please feel free to contact us via email [email protected].

See more: Belize offshore company formation

The applicable Belize income tax rates for IBCs are as follows:

• 1.75% of chargeable income for businesses with gross receipts of more than BZD 3 million.
• 3% of chargeable income for businesses with gross receipts of less than BZD 3 million.
• Remarkably, an offshore company is not obligated to pay Belize income tax if its income is derived from trading activities or business outside of Belize.

According to the IBTA amendment in December 2019, no income tax will be required on chargeable income effective from January 1, 2020; except for companies engaged in petroleum operations.

Since January 1, 2019, Belize international business companies (IBCs) are no longer automatically exempt from taxes. Like a domestic business, these IBCs are subject to the Belize Income and Business Tax Act (IBTA).

Under IBTA, Belize has a dual taxation system. Businesses are levied with two sorts of taxes:

• Belize business tax (equivalent to VAT) is computed on gross income or turnover;
• Belize corporate income tax (CIT) is computed on chargeable income.

The general Belize income tax rate is 25%.

The summary of Seychelles tax guide for offshore companies:

• A 1.5% tax rate applied to special license companies;
• The applicable business tax rates for companies are 25% for the first 1,000,000 SCR and 33% on any amount above it;
• Seychelles capital gains are exempted;
• No stamp duty;
• A reduced VAT rate of 0%.

In case you are looking for more Seychelles tax guides, you can visit our website or contact our specialists directly via email/hotline.

Based on Seychelles Business Tax Act 2009, the Seychelles company tax rate (i.e. Seychelles corporate tax or business tax) is 25% on the first SR 1,000,000 of taxable income and 33% on the remainder.

The Seychelles IBC tax rate is 0%, which means offshore companies in Seychelles can optimize their tax flow, and increase their profits. In addition, company income derived from services outside of Seychelles will not be taxed on dividends, interests, royalties, or other payments paid out to its stakeholders.

For more information about Seychelles company tax rate, please contact us via Hotline +65 6591 9991 or email [email protected].

There is no Seychelles capital gains tax; nor are interest - dividends and other payments received from abroad taxed.

When doing business in Belize, it is important to get the right business license for your company. Generally, there are two main types of Belize license that you must know:

Trade license in Belize

Businesses providing any kind of service or product in Belize have to obtain a trade license. You can register the license with the local city or town council. The fees for trade licenses in Belize are divided into sectors and charged based on the annual rental value of the property. For instance, supermarkets, grocery stores, furniture stores, and repair businesses are subject to a 3.5% fee. Hardware stores, gas stations, and dentistry offices are all subject to a 5% fee. For businesses engaging in gaming or monopolies, the highest rate is 25%.

Belize financial license

If your business operates in the international financial services industry in or from within Belize, you must carry a Belize financial license. The Belize Financial Service Commision (FSC) is in charge of granting the license. There are 13 types of Belize financial license, prominently including International asset protection and management, Money Transmission, Accounting, and Payment processing Services. The application fee is flat US$1,000 for each type, but the renewal fee is different ranging from US$5,000 to US$25,000.

Registering a business name in Belize is the first step to forming your business. Protecting your business name is important because it is a form of identification among your target markets. This task will be undertaken by the Belize Company and Corporate Affairs Registry (BCCAR). We encourage you to contact One IBC via phone or email, so we can help you with the procedure of business name registration in Belize.

Follow our 4 simple steps to register a business name in Belize:

Step 1: Place an order with One IBC

• For inquiries on fees and vetting of documents, kindly email to [email protected].
• Your order should include 3 proposed names, One IBC will conduct a company name search to make sure that your business name is unique and valid in Belize.

Step 2: Make payment

• The next step is to make your payment to One IBC. Make sure you’ve placed the order of all services that you need. Please see our Payment Guidelines for more details.

Step 3: Fill required documents

The required documents to register a business name in Belize must be filled accurately. The checklist of required documents is as follows:

• Registration of a company with and without Liability
• Overseas Registration
• Business Name Registration
• Limited Liability Partnership Registration

Step 4: Register your business name

• One IBC will submit your original documents to BCCAR. We keep you updated throughout the business name registration in Belize.

The incorporation process takes only 1-2 days since we receive all required documents and payment from your side.

What is the Requirement for the Incorporation Process?

The requirement is simple. You just need to submit 2 types of documents:

• Scan in Color of Passport
• Scan of Address Proof in English (Utility Bill, Bank Statement,...)

See more: How to start a business in Belize

The fee for the registration of an IBC having an authorized share capital up to US$1,000,000 is US$ 1199 our professional service fee and Government fee plus US$ 550. Total US$ 1,749.

See more: 

• Belize company registration fees
• Register company in Belize

There is no Belize capital gains tax. This means that if you make profit from an investment in Belize, such as property, you will be exempted from capital gain tax for your earnings.

Non-payment of annual renewal fees will make the offshore company lose its status of good standing, the company will also incur severe late penalties and legal consequences.

At any time after the due-date of the Government fees, the Registrar of Companies is entitled to strike-off the company from the Registry for non-payment of fees, after giving the Company a 30-day notice.

Read more:

• Belize company formation
• Doing business in Belize

2 mins video Belize International Business Company (Belize Offshore Company - IBC) has totally exemption on taxes, according to the International Business Companies Act, 2000. No filing of accounts or submitting annual returns is required after the offshore has been incorporated. Belize is not a party in any double taxation treaty, which provides enhanced protection against fiscal inquiries. The law protects the confidentiality of the Shareholder, Director and the offshore company

How to open company in Belize?

Belize Offshore Company Formation, initially Our Relationship Managers team will ask you have to provide the detailed information of the Shareholder/Director's names and information. You can select level of services you need, normal with 2 working days or a working day in urgent case. Furthermore, give the proposal company names so that we can check the eligibility of company name in the Registrar of International Business Companies system.

You settle the payment for Our Service fee and official Belize Government Fee required. We accept payment by Credit/Debit Card     , Paypal  or Wire Transfer to our HSBC bank account  (Payment Guidelines).

After collecting full information from you, Offshore Company Corp will send you a digital version (Certificate of Incorporation, Register of Shareholder/Directors, Share Certificate, Memorandum of Association and Articles etc.) via email. Full Belize Offshore Company kit will courier to your resident address by express (TNT, DHL or UPS etc.).

You can open bank account for your company in European, Hong Kong, Singapore or other jurisdictions supported offshore bank accounts! You are freedom international money transfer under your Belize Offshore Company.

Your Belize Company formation completed, ready to do international business!

Read more:

• Register company in Belize
• Open offshore bank account in Belize

Nowadays in the globalized world the exact location of a bank is less important than the choice of the bank itself. When choosing a bank, a number of questions should be considered.

• What are the services available at the particular bank? 
• What are the costs? 
• Will your company be able to maintain the minimum required balance or satisfy any other financial requirements for the account? 
• What are the client acceptance prerequisites at the bank? 
• Are there any requirements of the bank that may prevent your company from becoming its client? 
• Is the bank in Your time zone or the time zone of your clients to be able to contact it at the time you need? 
• Do they speak Your language? 
• What is the quality of work ethics in the particular bank or in the jurisdiction of the bank in general as this may result in good service, quick and accurate work or, on the contrary, delays, mistakes and poor attitude. 

All in all, there is no single answer as to the most appropriate location of an offshore bank account – it is always a compromise between your financial abilities, convenience and reliability.

Can a foreigner open a bank account in Belize?

Yes, there are no restrictions on foreigners opening a bank account. In fact, many foreign individuals and companies have opened an offshore bank account in Belize, including US citizens.

There are two forms of offshore banking in Belize: A Class - Unrestricted license and B Class - Restricted license.

• A-Class requires the holder to open, manage and operate a business in Belize;
• B-Class has similar requirements and applications as the A-Class, the difference is only that offshore banking operation in B-Class is limited to specified activities as stated in the license.

The required documents to open an offshore account in Belize

You can open an offshore account for the international company in Belize. There are various types of documents that are required to submit such as company license, driver’s license, social security equivalents, v.v. and it depends on the bank you choose but the general requirements are as follows:

• Notarized copy of valid passport or document with signature, photo, and personal identification;
• Proof of your residential address such as original utility bill of the residence;
• A bank reference from a bank that has more than 2 years of history with you;
• Professional reference from a lawyer or accountant with 2-year history or a second bank that knows you for over two years.

Read more:

• Belize bank account
• Belize company registration