In 2015 correspondent banks resumed service to Belize banks for USD clearance. Ever since Belize companies hold bank accounts in foreign jurisdictions. Even though this flexibility ensures enhanced protection, (offshore) banks not always comply with international standards. When banks are closed and deposits disappear, Legal Floris LLC helps creditors to regain access to their assets. Asset recovery relates to both Belize companies risking their investment, as well as to investors losing funds to a Belize company.
Belize companies need a bank account to conduct business. The structure of the traditional Belize IBC triggers questions for financial institutions. Most queries are straightforward and easy to answer and can avoid a cumbersome relationship with the bank. The preparation for bank account opening for offshore companies therefore calls for a competent introducer with insider knowledge of banking and the offshore financial industry. The choice for appropriate financial partners is crucial and must be handled accordingly.
The corporate tax residency of an international company decides where taxation takes place. Beneficiaries of a Belize IBC and other offshore entities give preference to taxation in the offshore jurisdiction for its tax neutral status. The Belize IBC therewith permits global market players to build and protect their wealth offshore. National tax laws in the country of residence of the beneficial owner determine the personal tax liability upon withdrawal of funds from the offshore entity. To avoid local scrutiny this must be planned and prepared with utmost care.
The Belize IBC is an interesting option to act as a holding company for a subsidiary in a high tax jurisdiction. The double tax treaty between the country of residence of the subsidiary and the holding company decides on the qualifications for exemptions of withholding tax. Holding companies act as parents for their subsidiaries. This relationship is justified by share ownership of the parent in the subsidiary. The legitimacy of a tax free inter-company transfer of wealth derives from the ownership and property rights held by the holding.
Belize is known for its efficient incorporation regime that allows registration of an offshore company within a day. The International Business Companies Act reviews the corporate environment and the rules for Belize company formation. Incorporation involves the choice for the company name, the appointment of the director(s) and shareholder(s), and the formation of the memorandum and articles of association. Once the company is established, annual fees and accounting records are necessary to maintain the good standing of the company.
A nominee is legally appointed by the owner of a company to execute predefined duties. These duties improve the local substance and presence of the company, which is often times needed to comply with tax regulations in both the home as well as the host country. As such, most beneficiaries choose to play at safe and appoint a professional nominee, often a legal resident in Belize. Yet, a nominee service to act as director or shareholder in the company is not mandatory. It merely is a way to optimize its corporate safeguards.