Belize is a small island state in Central America that offers several advantages for company incorporation, and the jurisdiction fast becoming the destination of choice for both investors and entrepreneurs looking to incorporate in Latin America.
Belize company formations enjoy full privacy, global banking, asset protection, wealth building, and tax-free investment. Also, for a fast, hassle-free, and low-cost company formation, where a simple IBC (International Business Company) is needed, it’s hard to beat Belize.
Registering a company in Belize can be a good solution for entrepreneurs wishing to work in the Latin American market, plan their taxes, and safeguard their assets. Belize also has a strong business environment and legal entities that can be established in Belize by both residents and non-residents.
Business registration process in Belize
If you are looking to register a company in Belize, outlined next are the simple steps involved.
Choose the company type
The first thing an incorporator must decide upon is the type of business entity he/she wants to establish. In Belize, one commonly opts for either of the following types of business entities:
Also, Belize currently has two free zones namely:
- Export Processing Free zone which is suitable for manufacturing, processing, and assembly line businesses and,
- Commercial Free Zone which is more suitable for Commercial offices, warehouses, manufacturing, insurance, and banking services.
For a company whose primary purpose is trading business, opting to incorporate as an IBC would be more appropriate.
In addition, Belize LLCs were lately passed into law. Belize LLCs are comparable to IBCs, except they have membership interest, instead of shareholder stock.
Register a legal address
After you have established the company structure, the incorporator needs to find an office in Belize and register the company’s legal address. Once the location is determined, the incorporator needs to submit an application to the Commissioner of Lands and wait for their authorization. The registered office must be located in Belize but the principal office address (business address) may be anywhere in the world.
Register a business name
Next, the incorporator must develop and register the business name. Registering the business name is done at the Belize Companies Registry. Note that the company name must be unique and different. It must not be similar to any established company presently operating in Belize.
Submit the necessary documents for company registration
Next, is preparing the Memorandum and Articles of Association, company By-laws, and personal documents for company founders such as passport copies. The papers will be submitted to the Belize Companies Registry. Once the application has been evaluated, a certificate of incorporation is issued.
Apply for a trade license and work permit
The next step is to apply for a trade license, which any company operating in Belize must have. The incorporator must go to the Belize City Council for the Trade License Application. The application will be authorized based on the recommendation of the Trade Licensing Board.
Also, the incorporator must apply for a work permit. The immigration department is in charge of giving work permits. For obtaining this, the incorporator must be a resident of Belize or must have lived in Belize for a period of 6 months at least otherwise the incorporator is not qualified to get a work permit.
Registration of Social Security
Next is registering with social security. According to the Social Security Act under the Laws of Belize, businesses that employ at least one person must register for social security with the Belize Social Security Board. This is to ensure the employees are taken care of in case of an accident or sickness.
Tax registration
- Register for Goods and Services Tax (GST): the following step is to register for the GST which is applied at a rate of 12.5% on all goods and services in Belize. This is done at the Government Sales Tax department and is a necessary step.
- Get the Taxpayer Identification Number (TIN): the last step is to register for business tax at the Income Tax department to obtain the Taxpayer Identification Number (TIN) and to get a certificate of registration.
Being a developing nation, Belize offers a broad range of opportunities to foreign investors and entrepreneurs. If you are looking to establish a business in Belize, let’s go ahead and contact your Damalion expert now.
