When it comes to offshore structures, you’ve got options to choose from. However, not all jurisdictions are great for both offshore banking and company formation. Generally speaking, an offshore strategy involves setting up a company in one jurisdiction and opening a bank account in another.
This is also the case for Belize.
Belize, well-known in the offshore industry as one of the well-sought-after jurisdiction for setting up a company, is the best for your company HQ, but not for banking, unfortunately.
The recent liquidity crisis that hit one of Belizean's top banks, Choice Bank, has put a dent on Belize's offshore reputation. The crisis resulted in the bank's license being revoked by the Central Bank. The government was taking over the bank's assets and taking care of the clients' claims. The whole picture is unpretty, to say the least.
To be fair, there's one good news from the jurisdiction, though: Caye International Bank has recently won the 2018 Most Outstanding Offshore Bank in Central America award from London-based Wealth and Finance International for innovation and performance. It's quite a significant achievement, not only for the bank but also for Belize's disrupted financial service sector.
Despite the good news, it's easy to understand that gaining investors and prospects' trust will take more than just one good story.
Nevertheless, as an offshore company headquarters, Belize still has a lot to offer. In this article, we’re going to go into detail about why Belize is a prime choice for opening an offshore company.
1 - Belize has a Stable Economy and Currency
Speaking of currency, we all know that currency value is contingent upon a healthy economy. In Belize, the economy is thriving. In fact, Belize has the second highest per capita income in all Central America, a real sign of a healthy economy.
For investors wondering how that measures up in term of currency, rest at ease. The Belize dollar is tethered to the U.S. dollar at a 2 to 1 ratio. That means that every 1 USD is equivalent to 2 BZD. If you are an international investor looking for an offshore banking option with low risks, then Belize could be the solution you’ve been searching for.
2 - Belize Works Hard to Be Friendly for Businesses
The Belizean government has long recognized the strength of being a prominent offshore jurisdiction, and the country has worked hard to accommodate overseas businesses and high net worth individuals who might want to secure their assets in a corporation.
Belize is International-business-friendly: Unlike the Belizean banking sector, the process for incorporation is very simple and straightforward. Moreover, there are no accounting requirements or minimum capital requirements. Records of directors and shareholders are kept out of the public eye.
Legal movements such as the International Business Companies (IBC) Act, Trusts Act, and Offshore Banking Act have further made incorporating in Belize easier.
3 - Belize is a Tax Haven - for Better or Worse
The "tax haven" badge worn by Belize puts the jurisdiction under a negative spotlight. However, while the public doesn't seem to favor tax havens, businesses, and HNWIs know the value Belize offers as one.
Indeed, Belize is a true tax haven: As mentioned above, the incorporation process is simple. That's a great feature. However, what's more interesting is this: Belizean companies don't pay taxes on overseas income. Such income is considered as capital gains, dividends, earned interest and revenues - which are tax-free. Even dividends paid from your Belize-based company to you are tax-free if you're not a Belizean.
The Belizean government has no stamp duty, which is something any company or individual looking for a tax haven would want. Plus, Belize has no tax treaties with other governments, which makes it easier for individuals and businesses to bank without worry of international repercussions.
4 - If Financial Privacy is Important to You, then Consider Belize
Belize has also put stipulations in place to help ensure the financial policy of those who invest there. For instance, the only way the names and account information of account owners can be disclosed is when a criminal investigation is underway. In this case, documentation and a court order must be submitted before details are released.
Also, there are no restrictions on the currency being moved in and out of Belize. Since there is no exchange control, offshore companies incorporated in the country of Belize can transfer as much currency as they want, and there are no reporting requirements at all for doing so.
Conclusion
While many offshore banking jurisdictions offer a combination of a few of these benefits, Belize is one of the only such countries to provide such comprehensive benefits for companies and individuals wanting to open an offshore banking account.
If you want a business-friendly tax haven that will keep your finances private, you’re in good hands in Belize. With governmental stability and some of the best banking options in the world, you can rest assured that your finances will be in the best environment possible for nurturing growth and stability.
AUG
2018
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