Limited Liability Company
Belize is a Central American country known for its English-speaking ability, and robust offshore environment.
The Limited Liability Companies Act was enacted in 2011. LLCs are similar to IBCs except they have membership interest, rather than shareholder stock, having both the advantages of a partnership and the advantages of a corporation, being a more flexible structure than the latter.
An LLC requires minimal corporate formation requirements. They may be incorporated as a single-member LLCs, and there are no company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. Its operating agreement may be arranged by its members according to their needs.
An LLC is treated as a partnership for tax purposes. Members pay personal income taxes in their country of residence on LLC profits proportionally to their share of participation in the LLC company, whether distributed or not.
It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.
LLC’s tax transparency allows residents of certain jurisdiction to not be penalized under controlled foreign company rules.
Belize LLCs do not face any reporting requirements. Setup costs and ongoing government fees are low.
The country has implemented the OECD automatic exchange of information (AEoI) and has signed tax information exchange treaties (TIEa) with 18 countries.
An LLC is suitable for protecting liquid assets like cash, or securities, bonds or other investments.
An LLC with a strong and protective operating agreement is an interesting tool for protecting your higher risk assets and liabilities.
Country code – BZ
Legal Basis – Common law
Legal framework – Limited Liability Companies Act 2011
Company form – Limited Liability Company (LLC)
Liability - The liability of the members is limited to the amount of their capital contributions.
Capital – There is no minimum capital required, and it may be in a nonpaid up basis.
Members – An LLC may be formed by one or more members who may be residents or non-residents and natural persons or corporations. Details of members are not publicly disclosed.
Manager – At least one manager must be appointed by the members, who may be a member or a third party, natural or legal person and non-resident. Details are not available to the public.
Secretary – The company may appoint a secretary, but it is not mandatory.
Registered Address – A company shall appoint a licensed registered agent and shall have a registered address and office in Belize.
General Meeting – There is no statutory requirement for any formal meetings of members, and these can be held anywhere.
Electronic Signature – Permitted.
Re-domiciliation – Inward and outward re-domiciliation is allowed.
Compliance – Companies may maintain accounting records for 5 years, these may be kept anywhere and in any currency.
There is no requirement to file an annual return, financial statements nor a tax return for companies that are not doing business within Belize.
- Members not disclosed
- Members not disclosed
- Corporate members permitted
- Corporate manager permitted
- Local manager required
- Registered office or agent required
- Annual meeting required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum members
- USD 1 Minimum registered capital
- - Minimum paid up capital
- USDAny Capital currency
- 100% Foreign-ownership allowed
- 2018 AEOI
Corporate income tax – A Belize LLC is a tax transparent entity, which means that any profits and losses are passed through to the members to be reported as personal income. There are no taxes, exchange controls or fees on assets or income originating outside of Belize.
Other taxes – Tax residents and non-residents individuals are subject to income tax on their income derived from Belize at a 25% rate. Income from a foreign source is not subject to taxation. Capital gains are tax-exempt.
Belize levies a real property tax of 12.5% of the annual rental value for an occupied property, and a 2% tax on the annual rental value for unoccupied properties. Property tax may not exceed 2% of the market value of the property. There is a land tax of 1% for unimproved lands.
There is a stamp duty on the transfer of assets, rates depend on the asset class. Purchase of real property is subject to a 10% stamp duty.
- Tax transparent entity
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- 0% Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 3.18% Social Security Employee
- 5.35% Social Security Employer
- 25% Personal Income Tax Rate
- 12.5% VAT Rate
- 30 Tax Treaties
Belize, formerly British Honduras, is a CARICOM and SICA member. Located in the northeastern corner of Central America, bordering to the north with Mexico and to the south and the west with Guatemala. The capital is the city of Belmopan and the most populated city is Belize City, which has the main port of the country.
Although is the only Central American country with English as the official language, its just over 380,000 inhabitants speak predominantly Spanish and Creole. Its currency is the Belize Dollar (BZD), which is currently pegged to the US$ (2:1), but most commercial establishments accept US dollars.
Belize is a constitutional monarchy with a parliamentary system of government. The Head of State is Queen Elizabeth II, who is represented in the country by the Governor General.
The executive power is headed by a Prime Minister, who heads the Cabinet of 13 ministers, plus 5 deputy ministers, who represent the majority political force of the Belizean Parliament.
The legislative power is bicameral, composed of a House of Representatives of 31 members democratically elected for a period of five years and a Senate of 12 members appointed by the Governor General from proposals of the Prime Minister, the leader of the opposition and of Various religious, economic and social institutions.
The Belizean economy is the smallest in the Central American region, but it is the third largest in GDP per capita, only after Panama and Costa Rica.
Belize has an economy based primarily on agriculture and services. Domestic industry is limited, constrained by relatively high-cost labor and energy, and a small domestic market.
Tourism attracts the most foreign direct investment although significant foreign investment is also found in the energy, telecommunications, and agricultural sectors. The stability of the currency is one of the attractions for foreign investment.
Belize's exports of goods and services account for over half of its GDP. The export products mainly consist of seafood such as shrimp, followed by sugar, citrus products, bananas and small manufactures.
Its Barrier Reef (longest in the Western Hemisphere), 127 islands, excellent fishing, safe waters for boating, scuba diving, and snorkeling, abundant jungle flora and fauna, and numerous Mayan ruins has bolstered tourism and ecotourism industry.
Belize is a well-known offshore jurisdiction for its privacy policies, tax advantages for non-residents and its full tax exemption for its domiciled International Companies. Although its banking sector is not as large as other offshore financial centers, it is gaining popularity in recent years.
Tax treaties Map
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