All around the world, there are small businesses and large corporations that don't want their local governments to know every detail of the business or its finances. Such disclosure can be mandatory, but it is generally viewed as both unnecessary and potentially even detrimental to companies.
As an alternative, and to gain back the privacy that businesses deserve, it is possible to register a company in Belize. Uncover more about the benefits of operating in Belize and how the International Business Companies Act of 1990 can help.
Understanding the International Business Companies Act of 1990
In 1990, Belize initiated a new law that would encourage businesses from around the world to operate out of Belize. Called the International Businesses Companies Act, the design was similar to that of an act passed in 1984 in the British Virgin Islands.
The object of the International Business Companies Act of 1990 was to bring in more assets to Belize, which definitely happened. Within one year, more than 15,000 companies registered as IBCs in Belize, and today there are more than 30,000 who enjoy the perks of the IBC designation.
Logistically Convenient for International Corporations
One of the biggest reasons for a business to become an IBC is because of the logistic convenience. Unlike in many other countries, a business incorporated in Belize is not mandated to have an annual general meeting within the nation, and the board can even communicate virtually if needed.
In addition, an IBC is not required to keep any of their business documentation within Belize. It can be kept securely wherever the heads of the corporation prefer.
Huge Tax Benefits for IBCs
Of course, there can be no overlooking the reduced taxes for which an IBC is eligible. This is, without a doubt, a huge reason for a company to head to Belize and become an IBC.
All offshore companies in Belize that are qualified as an IBC will not have to pay income taxes, capital gains taxes, stamp duty taxes or estate taxes. In fact, an IBC will not be required to pay any taxes whatsoever, which is a huge way to increase profit without cutting corners or disappointing customers.
Privacy and Anonymity for Business Owners and Executives
Another perk of qualifying to become an IBC is the privacy that comes with it. Board members, executives and owners don't have to disclose their identities, and they don't have to disclose any financial records or profit information.
In fact, it is not even mandatory to disclose what kind of corporation you are or how you plan to make a profit. As far as anonymity and a lack of intervention is concerned, it is hard to beat an IBC.
Getting Started as an IBC
To become an IBC, you will need to follow an application process. Along with understanding the restrictions in place, you can fill out an application form, declare ownership of the business and pay a minimal fee.
At this time, many businesses also opt to open up a U.S. currency bank account in Belize for the corporation.