The Belize Companies Act is quite old, so recently, a new Belize Companies Act 2022 was approved and published in Belize as part of the modernization of company law and the business registration policy.
The new Companies Act amended the rules for opening and managing local and offshore companies. Among the fundamental points – the registration of IBC (International Business Company) in Belize will soon be unavailable. For existing businesses, there is a change period during which they must bring the documents that should acknowledge the new rules.
The new rules revoke the laws that govern both local and international businesses, including the IBC legislation, which governed offshore companies in Belize. When the new law takes effect, all entities will have the same stature and will be governed by the general law.
According to Hon. Kevin Herrera, the senator who represents the business community, the legislation has received the support of the community, which was involved in the process of remodeling the law, and he said that it is a crucial step that will open doors for new businesses.
The New Belize Companies Act primary changes
- Simplification of fundamental business processes, especially virtual meetings and digital registration of new members.
- Whether through equity or debt, raising capital is also an objective in the passing of the new law.
- Removal of statutory boundaries on the number of shareholders.
- Reinforcing minority shareholder rights.
- Simplification of liquidation proceedings.
- By bringing IBC and the Domestic Companies into one type, capital can be raised locally, as well as externally in order to make investments in Belize.
The Public Service Union (PSU) Query
The PSU alleges it was not appropriately consulted before the introduction of the law in Parliament. But it was later asserted that it had sent a letter to the government of Belize calling for a meeting with Government of Belize representatives about the status of staff of the current company registries in Belize before the bill was passed.
Senator Elena Smith (the representative of the country’s labor unions), stated during her remarks in the Senate, that she was notified by the PSU that they had not received a reply to the letter.
During her presentation, she read a fraction of the PSU’s letter, which stated that the Public Service Union of Belize notes that the bill has been initiated in the House of Representatives without any prior notice or input from the PSU to talk about the employment tenure, the superannuation advantages of public officers therein.
Senator Eamon Courtenay (the lead government senator) replied to the public query on the matter of the staff’s employment status and handled the matter sufficiently.
He also said it is not the Belize government’s intent for any employee to be negatively affected by the passage of the legislation.
The introduction of the bill is also regarded as a first step towards decolonizing the Constitution of Belize, which was first approved in 1981 on independence from the United Kingdom.
The present Belize Companies Act is over a century old, and the International Companies Act which oversees offshore companies was approved largely from the British Virgin Islands. The newly passed bill is expected to bring these two outdated laws together and enhance the legislation through the inclusion of modernized characteristics that are in place in best-practice jurisdictions.
At the moment, only parts I (interpretation) and XVII (administrative provisions) of the Act have become operative. The rest will become relevant when a particular ministerial order is issued.
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