Georgetown Trust Blog

Getting the Right Offshore Banking License For Your Business

Posted by Georgetown Trust on Feb 24, 2015 10:20:00 AM

Banking_Document_148173128TSBusinesses of all shapes and sizes flock to Belize for a multitude of reasons. First, and perhaps most importantly, is the fact that Belize is a tax-neutral destination, and corporations within Belize are not liable for capital gains taxes.

In addition, the government in Belize allows corporations to operate privately and without intervention.

If you are interested in gaining an offshore business license for your business in Belize, learn more about what a licensing consultant can do, what your options are and how to proceed from here.

Becoming an IBC

In 1990, Belize initiated the International Business Companies Act in order to encourage businesses to move their headquarters to the country and store their capital within the nation's many banks. The act was wildly successful because it offers so many perks to corporations, and today more than 30,000 offshore companies are licensed in Belize.

It is important to understand that an IBC, or International Business Company, is an official designation offered by the Belizean government. IBCs are generally not designed to do business within Belize, but operate entirely offshore.

Becoming a 250 Onshore Company

If your business is designed to operate within Belize, to collect payments from individuals in Belize or to offer goods and services to tourists and residents within Belize, then becoming a 250 Onshore Company might be a better fit.

This type of business will need to disclose significantly more information than an IBC is required to do, but they can still enjoy the benefits of tax deductions, low operating costs and a hospitable banking system.

Class A and Class B Banking Licenses

Once you have determined what kind of business you will become, a 250 Offshore Business Company or a 250 Onshore Company, you will need to choose between a Class A and a Class B business license. With a Class A business license, you will have almost no restrictions when it comes to banking for your corporation.

To quality for a Class A business license, however, you'll need to have at least USD $3,000,000 in capital, and there is a corresponding annual licensing fee of USD $20,000. If your business doesn't meet these capital requirements, a Class B business licensing may be better suited. Class B business licenses require a minimal capital balance of USD$500,000, and the annual costs for the license are USD $15,000. 

Working With a Licensing Consultant in Belize

Navigating the world of business in Belize can be made much easier with the help of a licensing consultant. The International Business Companies Registry of Belize lists Georgetown Trust Limited as a licensed registered agentthat can help new corporations decide their best course of action.

A licensing consultant can help offshore and onshore corporations fill out the required paperwork, understand the taxation laws in place, pick the best banking license for the size of their company and open an offshore bank account with as much privacy and anonymity as desired.

With the right banking license, both onshore and offshore businesses can thrive in Belize. 

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Topics: Licensing Consultation