Launching A Business In Belize: Navigating The Tropical Haven For Entrepreneurs

Belize is a great place for foreigners to start a business, with ample opportunities for virtual and brick-and-mortar ventures. The country has a pro-business environment and offers many investment incentives. Here are the steps to follow to start a business in Belize:

1. Business name registration: Choose a unique name for your business and register it with the Companies & Corporate Affairs Registry. This process can be completed in one day and costs BZ$25.

2. Trade license acquisition: Obtain a trade license from the Town Board or City Council if you plan to exchange goods or services for monetary value within an urban area. The annual trade license fee is typically calculated as 25% of the annual rental value of your business premises.

3. Income tax registration: Register with the Income Tax Department and obtain a unique Tax Identification Number (TIN).

4. General Sales Tax (GST) registration: If your business has an annual turnover exceeding BZ$75,000, you must register for GST with the Department of Government Sales Tax.

5. Social Security registration: According to the Social Security Act, businesses that employ one or more persons must register for social security within seven days of hiring their first employee.

6. Registration/protection of intellectual property: Visit the Belize Intellectual Property Office to register and protect your business's intellectual property, including trademarks, patents, industrial designs, and copyrights.

Foreigners are facilitated: The government welcomes foreign investors and helps them navigate the process

Belize is an attractive prospect for foreign investors due to its status as an upper-middle-income country with a small economy and close sociopolitical and economic ties to the Caribbean. The country has a unique cultural heritage and is the only English-speaking country in Central America.

The Belize government welcomes foreign investors and has demonstrated its commitment to attracting foreign direct investment (FDI) by implementing legislative reforms and creating the Economic Development Council to increase the national dialogue on private sector development.

• The government has introduced various incentive programs aimed at promoting investment in the country, including the Fiscal Incentives Act, the International Business and Public Companies Act, the Export Processing Zone Act, and the Commercial Free Zone Act. These programs offer tax exemptions, duty-free importation, and other benefits to encourage foreign investment.
• The Belize Trade and Investment Development Service (BELTRAIDE) is the country's investment and export promotion agency. It provides advisory services and incentive packages to foreign investors, identifying priority sectors such as agriculture, agro-processing, tourism, sustainable energy, and more.
• The government has taken steps to improve the business climate, reduce crime, and facilitate access to credit, which are expected to increase growth.
• Belize has no restrictions on foreign ownership or control of companies. Foreigners can have 100% ownership of both land and companies.
• The country has a stable political environment and has held peaceful and transparent democratic elections since gaining independence in 1981.
• Belize has a growing financial offshore system, and its International Business Companies Act is among the most advanced and user-friendly IBC legislations worldwide.
• The government has amended laws to satisfy OECD base erosion and profit-sharing requirements, demonstrating its commitment to transparency and global regulatory compliance.
• The Belize Companies Corporate Affairs Registry is responsible for the registration process of all local businesses and companies, providing a one-stop solution for investors.
• The government has established the Cabinet Sub-Committee on Investment, composed of ministers whose portfolios are directly involved in considering and approving investment proposals. This committee assesses proposals based on size, scope, socio-economic acceptability, revenue to the government, employment, and environmental considerations.
• Belize has a stable but fragile financial system, with improvements in non-performing loans and capital adequacy ratios. The Central Bank of Belize monitors and enforces regulations to maintain stability and prevent disruptions to the local economy.
• The country has a pro-business environment, with investment incentives in key sectors such as agribusiness, agro-processing, fisheries, light manufacturing, and more.
• The government has enacted laws to protect intellectual property rights, providing a secure environment for investors.
• Belize offers a strategic location with access to state-of-the-art telecommunications and favourable conditions for international trade.
• The Belize IBC legislation allows for flexible corporate structures, accommodating the needs of different businesses, whether it's a one-man operation or a complex multiple-shareholder system.
• The government has taken steps to address corruption and improve transparency, such as signing the United Nations Convention Against Corruption (UNCAC) and implementing anti-money laundering and counterterrorism financing measures.

While there are challenges, such as bureaucratic delays, high import duties, and a small domestic market, the Belize government actively facilitates foreign investors and provides support through various agencies and legislative measures.

Off-shore business exemptions: Foreign nationals can establish remote businesses from anywhere in the world

Belize is an attractive destination for foreign nationals looking to establish an offshore business due to its favourable regulatory environment, strategic location, and flexible business operations. Here are some key considerations for foreign nationals looking to set up a remote business in Belize:

Tax Exemptions:

Belize offers numerous tax exemptions for offshore companies, including exemptions from corporate income tax, capital gains tax, dividend tax, and registration tax. Additionally, offshore companies are not subject to tax on profits or interest paid by offshore corporations, and there is no income tax for enterprises based outside of Belize. These tax exemptions make Belize an appealing option for foreign nationals looking to minimise their tax obligations and maximise their financial gains.

Confidentiality and Privacy:

Belize has robust privacy policies in place, providing individuals and businesses with a high level of confidentiality for their financial affairs. The country's commitment to privacy instils confidence and attracts investors seeking to safeguard their assets and personal information. The International Business Registry (IBCR) of Belize does not require companies to disclose information such as the names of directors, owners, or shareholders. Additionally, Belize permits the formation of anonymous joint-stock corporations, further enhancing the privacy of investors.

Flexible Business Operations:

Belize offers a flexible and accommodating environment for businesses, with a variety of company structures available, including Limited Liability Companies (LLCs) and Business Companies (BCs). These structures cater to different business needs and provide options for enterprises of all kinds, whether in e-commerce, consulting, technology development, or other fields. Belize also allows for changing directors and shareholders without requiring a physical presence in the country, making it convenient for foreign nationals managing their businesses remotely.

Strategic Location:

Belize is strategically located in Central America, sharing borders with Mexico and Guatemala. This positioning provides businesses with prime access to major consumer markets across North, Central, and South America, as well as Caribbean trade partners. Additionally, English is the official language in Belize, which facilitates clear communication and ease of conducting business with international partners.

Easy and Hassle-Free Incorporation:

Belize is known for its fast and straightforward company formation process, making it an attractive destination for digital nomads and expats. The entire process can be completed in just two days, and Belize is ranked highly on the World Bank's ease of starting a company index.

In conclusion, Belize offers a favourable business environment for foreign nationals looking to establish remote businesses, with tax exemptions, confidentiality, flexible operations, a strategic location, and an easy incorporation process. By leveraging these benefits, foreign investors can optimise their financial strategies and efficiently manage their business operations from anywhere in the world.

Small businesses are popular: Over 90% of businesses are small and started with minimum capital

Belize is a small, sparsely populated country with a complex legal system. It has a small, mostly private enterprise economy that is based on the export of petroleum and crude oil, agriculture, agro-based industry, and merchandising, with tourism and construction also playing a significant role.

The country has an extremely low cost of living, making it an ideal place to start a business. The regulatory environment is friendly, particularly for small businesses, and there is no minimum paid-up authorised capital required for incorporation. Belize also has a unique cultural heritage and is the only English-speaking country in Central America.

Over 90% of businesses in Belize are small and started with minimum capital. The country offers multiple incentives to promote investment, including the Fiscal Incentives Act, the International Business and Public Companies Act, the Export Processing Zone Act, and the Commercial Free Zone Act.

To start a business in Belize, you will need to follow these steps:

• Create a business plan: This is crucial for identifying your competitive advantages, strengths, and weaknesses, as well as for obtaining financing.
• Register your business name: According to the laws of Belize, every firm or individual with a place of business in the country must register their business name at the Belize Companies Registry in the City of Belmopan. This process takes a minimum of 3 hours and costs BZ$25.00 (US$12.50).
• Incorporate your company: You will need to submit a Memorandum of Association and Articles of Association to the Belize Companies Registry and receive a Certificate of Incorporation. The minimum processing time is 3 hours, and the application fee depends on the quantity of share capital.
• Land acquisition and development: If you require land for your business, you will need to submit an application to the Commissioner of Lands, specifying the location and acreage. For ventures exceeding 500 acres, an Environmental Impact Assessment is required.
• Obtain trade license: Any person exchanging goods or services for monetary value within an urban area must obtain a trade license from the Town Board or City Council. The annual fee is typically calculated at 25% of the annual rental value of the premises.
• Register for taxes: All businesses in Belize must register with the Income Tax Department and the Government Sales Tax Department. A Tax Identification Number (TIN) will be issued, which is used for General Sales Tax (GST), Customs, and Excise processes.
• Register for social security: Under the Social Security Act, businesses that employ one or more persons must register with the Belize Social Security Board within seven days of hiring their first employee.

While there is no minimum paid-up capital requirement, it is recommended to have at least US$5,000 as paid-up capital to cover overhead expenses and the initial deposit for opening a business bank account.

Belize offers a favourable environment for small businesses, with low costs, supportive regulations, and various investment incentives.

Tax-free income: Foreign nationals can enjoy profits without paying taxes

Belize is a tax haven, allowing individuals and corporations to legally reduce their tax liabilities. The country's tax code defines offshore income as dividends, capital gains, earned interest, and revenues. Dividends paid by offshore companies incorporated in Belize to non-citizens of the country are also tax-free.

Belize's government eliminated taxes on a wide range of income sources, including dividends, interest, capital gains, and revenues earned offshore. The country also removed its stamp duty—a tax charged to certify the veracity of documentation for the incorporation of companies, trusts, and foundations.

The incorporation process in Belize can be completed within a few hours, granting tax-free status with no reporting requirements. The country's International Business Companies Act (IBCA) allows for a straightforward incorporation process, tax-free status, and no reporting requirements.

Foreign nationals can benefit from the following tax advantages in Belize:

• Total exemption from all forms of local taxation, including stamp duty.
• International Business Companies (IBCs) headquartered in Belize pay no taxes on profits earned outside the country.
• There is no residency or citizenship requirement for directors of offshore companies.
• Meetings of shareholders and/or directors may be held in any country and at any time, and they may attend meetings by proxy.
• No requirement to file accounts or have them audited; public filing is limited to the certificate of incorporation, memorandum, and articles of association.
• Capital may be expressed in any currency, and there are no minimum paid-up capital requirements.
• Offshore business activities are exempted from exchange control in Belize.
• IBCs may be used for financial management, investment holding, ship or property ownership, share ownership of other companies, leasing of assets, copyrighting and/or licensing, and general commercial trading.
• Companies are not required to file an annual tax return.
• The US dollar is widely accepted for business purposes in Belize, with a flat rate of exchange: US$1 = BZ$2.
• Belize has no double taxation treaties with any other country.

It is important to note that while Belize offers tax advantages, it is no longer considered a tax-free jurisdiction. Additionally, businesses operating in Belize are typically onshore and subject to various taxes and fees. However, with careful structuring, a business can legally derive benefits from multiple jurisdictions, including offshore entities.

Investment leads to residence: Investing in Belize or starting a business can get you a residency permit

Belize has gained popularity among foreigners, retirees, investors, and digital nomads. The country offers multiple pathways to residency and citizenship, making it an attractive place to invest, work, retire, and reside. Here are the steps and requirements to obtain residency in Belize through investment or starting a business:

Investment Residency in Belize

Belize offers investment residency programs that appeal to potential property owners and investors. Foreigners purchasing land or property in Belize are given the same rights as citizens regarding property ownership. There is full foreign ownership, and investors can own property outright with a fee-simple title. Additionally, Belize is a low-tax jurisdiction, with no capital gains or inheritance taxes.

The Belize Investment Residency program, also known as the Temporary Investment Residency, requires a minimum investment of $250,000 USD in the country, commonly through real estate. This residency is valid for one year and must be renewed annually by proving that the investment continues in Belize.

To apply for the investment residency, individuals need to provide evidence of residence in Belize and evidence of their investment in the country. The application process involves several steps, including gathering the required documents, submitting the application, interviews with immigration and the police department, notification by the immigration office, payment and submission of a security bond, and delivery of the residence card.

Starting a Business in Belize

Starting a business in Belize can be a pathway to obtaining residency and eventually citizenship. Here are the key steps to establishing a business in Belize:

• Business Plan: Develop a comprehensive business plan that identifies your competitive advantages, strengths, and weaknesses. This plan will be crucial for obtaining financing from banks, investors, or funding agencies.
• Registration of Business Name: According to Belize's Business Names Act, every firm or individual with a place of business in the country must register their business name. This can be done at the Belize Companies Registry in Belmopan, with a minimum processing time of 3 hours and an application fee of BZ$25.00 (US$12.50).
• Incorporation of a Company: Prepare and submit the Memorandum of Association and the Articles of Association to the Belize Companies Registry for review and obtain a Certificate of Incorporation. The minimum processing time is 3 hours, and the application fee depends on the quantity of share capital.
• Land Acquisition and Development: If your business requires land, submit an application to the Commissioner of Lands specifying the location and acreage sought. For applications exceeding 25 acres, a development plan must also be submitted to the Minister of Natural Resources and the Environment.
• Trade License: Obtain a trade license from the local city or town council. This typically involves submitting an application, obtaining final approval from the Trade Licensing Board, and paying the required fees, which are determined based on a percentage of the annual rental value of the premises.
• Registration for Taxes: Register for the necessary taxes, including General Sales Tax (GST), Income and Business Tax, and Social Security Tax. Depending on your business activities and income, you may need to register with the Department of GST, obtain a Tax Identification Number (TIN), and file monthly business tax returns.

By following these steps and meeting the relevant requirements, individuals can establish a business in Belize and work towards obtaining residency and citizenship. It is recommended to consult with specialists and professionals who can guide you through the specific processes and requirements.

Frequently asked questions