Offshore Company Options in Belize: IBC vs. LLC 

A well-known offshore jurisdiction in the Caribbean second only to the British Virgin Islands, Belize is an excellent place to register your offshore company. It comes with low-cost IBC and LLC registration and a British-based legal system. All the banks are familiar with the documents of Belizean IBCs. As for LLCs, they are new in Belize but have grown in popularity even more than IBCs lately.

Why form an IBC or LLC in Belize

Belize offers a range of benefits for foreign entrepreneurs who want to form an offshore company there. The jurisdiction has two popular types of offshore companies, i.e., the International Business Company (IBC) and the Limited Liability Company (LLC). Depending on the goals and needs of business owners, they will find certain advantages in each structure.

What is an IBC in Belize?

An IBC is a private company that is established under the Belize Companies Act 2022, which repealed and replaced the previous International Business Companies Act. IBCs conduct any lawful commercial activity outside Belize, except for banking, insurance, trust, or mutual fund services. They are allowed to own real estate and trade with Belize residents, provided it pays taxes and meets the set requirements.

If you need any of these features and advantages, an IBC in Belize could be your choice:

• Quick and Cheap Registration: Feel free to register a Belize IBC online for as little as USD 100 within 24 hours.
• Simple and Efficient Management: An IBC in Belize may have one or more shareholders and directors, either individuals or corporations, residents or non-residents. It does not need to hold annual meetings, file annual reports, or keep financial records in Belize unless it is a corporation or a non-resident partner.
• Low Tax Liability: Belize IBCs aren’t subject to any corporate income, capital gains, and withholding tax or stamp duty in Belize, as long as they don’t conduct business in the jurisdiction. To maintain its status, an IBC only needs to pay its annual license fee.
• High Confidentiality and Privacy: An IBC does not need to disclose its shareholders, directors, or beneficial owners to the public or the authorities unless required by law or court order. To protect its identity and assets, it has the right to use nominee services, bearer shares, or a registered agent. 

What is an LLC in Belize?

An LLC is a hybrid company that combines the features of a partnership and a corporation. Established under the Belize International Limited Liability Companies Act 2011, which was amended in 2023 to allow both residents and non-residents to form LLCs, it can engage in various activities within and outside Belize, subject to certain restrictions and taxes.

Here’s what Belize LLCs are famous for:

• Easy and Inexpensive Setup: LLC formation in Belize is a hassle-free process. If done online, it can be completed within a few days. 
• Flexible and Diverse Management: An LLC allows its multiple members, whether individuals or corporations, to be both local and overseas residents. Management is undertaken by members or appointed managers, as outlined in the operating agreement. Terms like profit-sharing, capital contributions, voting rights, and dispute resolution must be mutually agreed upon by members and comply with the set legal standards.
• Pass-Through Taxation: An LLC in Belize is not taxed separately. Instead, members report their share of income or loss on personal tax returns. This single taxation at the individual level may lead to lower taxes, especially for those in lower brackets or with deductions. Additionally, LLCs are exempt from corporate income, capital, and employer health tax in Belize.
• Access to More Capital and Resources: Belize LLCs boost capital by pooling member contributions, aiding expansion, and handling unforeseen costs. They gain access to varied financing options, leveraging their members’ creditworthiness. To attract customers, suppliers, or partners, LLCs in Belize can tap into member networks.

Why form an IBC or LLC in Belize?

As you can see, both an IBC and an LLC in Belize offer many benefits for foreign investors and entrepreneurs about to form an offshore company there. However, depending on the type and scope of your business activities, you may prefer one type over the other. Here are some factors to consider when choosing between an IBC and an LLC in Belize:

1. Taxation: If you aim to reduce tax liability and benefit from exemptions, an IBC might be preferable since the entity is not taxed in Belize if operating solely outside the country. On the other hand, if you wish to avoid double taxation and enjoy pass-through taxes, an LLC could be more suitable. This is because an LLC’s taxation occurs only at the individual level, rather than at both the corporate and individual levels.
2. Confidentiality: If confidentiality and privacy are your priorities, head for an IBC. Unless mandated by law or court order, it isn’t obligated to disclose shareholder, director, or beneficial owner information. Conversely, if aligning with international standards and regulations is crucial, you might favor an LLC. The reason behind this is that an LLC adheres to the Economic Substance Act, which requires the reporting of income, assets, and activities to authorities, plus maintaining a significant presence and activity in Belize.
3. Continuity: Are business continuity and stability paramount to you? An LLC may be a better option since it doesn’t automatically dissolve if a member passes away, retires, declares bankruptcy, or withdraws unless the operating agreement specifies otherwise. However, if having more flexibility and control is your priority, favor an IBC. This is because an IBC can be readily transferred, sold, or liquidated with the consent of shareholders and directors.

According to International Wealth, Belize is among the top jurisdictions worldwide to register both an IBC and an LLC. Sometimes we suggest buying a ready-made LLC to speed up the process. We are also happy to offer Belize LLCs with a bank account in a Belize offshore bank. You are welcome to get bank wire details to fund your account the same day you buy the LLC. During our free consultation on offshore or foreign bank accounts, International Wealth experts will help you pick a bank even before you register a company in Belize. 

Need to register an offshore company without further delay? Contact us for advice! We will offer you the best offshore products with professional service.