INTERNATIONAL FINANCIAL SERVICES

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1 INTERNATIONAL FINANCIAL SERVICES

2 inancial International Financial Services In 1990, Belize enacted the International Business Companies Act based on the British Virgin Islands model. In a short space of ten years, Belize has registered more than 15,000 IBC s. Belize s IBC legislation is viewed internationally as one of the most modern and user-friendly. It is particularly designed with the offshore investor in mind. A Belizean IBC is an ideal corporate vehicle for international financial transactions and allows the investor to engage in a wide variety of activities ranging from asset protection to operating bank accounts, brokerage accounts, ship ownership, commission arrangements and various other commercial transactions. The IBC legislation was supplemented in 1992 with the enactment of a Trusts Act which provides for both onshore and offshore trusts. Universally acknowledged as one of the best in the field, Belize s trust law contains provisions that are specialty designed to meet the needs of differing and diverse cultures and religions.

3 Belize further expanded its offshore sector in 1996 with the passing of the Offshore Banking Act. This provides for two categories of offshore banking licenses the Unrestricted A Class and the Restricted B Class license. The holder of a B Class license maintains lesser capital and is restricted to conducting certain limited business activities only. The election of a new Government in Belize in 1998 provided fresh impetus to the development of the offshore services sector. A spate of seven offshore industry measures were added to the statute book in 1999.These included: The International Financial Services Commission Act which seeks to promote, protect and enhance Belize as an international financial services center and to regulate the provision of international financial services; The International Insurance Act which provides for The regulation of persons establishing and carrying on international insurance business; The protected Cell Companies Act which allows for the incorporation of protected cell companies or the conversion of an existing company to a protected cell company; The Mutual Funds Act which provides for the regulation, authorization and control of mutual funds and their managers and administrators; The Limited Liability Partnerships Act which permits The creation of limited liability partnerships; The Retired Persons (Incentives) Act which offers certain tax exemptions and incentives to qualified retired persons; The International Business Companies (Amendment) Act which provides for the establishment of limited life companies. Belize now offers a full menu of investment vehicles designed to meet the needs of sophisticated investors around the world. As the range of services has widened, Belize has become a more convenient place to do business. It has truly become a full service jurisdiction a One-Stop Shop. While developing its offshore sector, Belize has not overlooked the fact that the offshore vehicles may be used by unscrupulous elements to launder the proceeds of drug trafficking or other illicit activities. Simultaneously with the enactment of the Offshore Banking Act in 1996, Belize also passed the Money Laundering (Prevention) Act which established mechanisms and procedures to ensure that the country s financial institutions are not used to disguise the source of illicit funds. This Act is central to the country s strategy to develop a reputable and viable offshore services sector. It is virtually an all crimes law and is not limited to drug related offenses. The definition of money laundering is extremely wide and covers engaging, directly or indirectly, in a transaction that involves property that is the proceeds of crime, disguising, disposing of or bringing into Belize any property that is the proceeds of crime, knowing or having reasonable cause for believing the same to be the proceeds of crime. Belize s banking sector (including offshore banking) is regulated by the Central Bank of Belize, while the non-banking sector falls within the jurisdiction of the International Financial Services Commission (IFSC) established in Why Belize? Political stability Tax Reduction Confidentiality Proximity to Mexico and Guatemala, two hours airtime from US, Central America and Caribbean. Asset Protection Estate Planning The advantages offered by the Belize Act are as follows: Total exemption from all forms of local taxation including stamp duty Speedy and simple incorporation for fast reaction to instant planning needs Only one subscriber and thereafter one shareholder (who could be corporate) is required

4 IBC s may have only one director. Directors can be corporate and need not be resident in the country Meetings of shareholders and/or directors may be held in any country, at any time, and they may attend by proxy Bearer shares may be issued. No accounts or information pertaining to the identity of shareholders or directors need be filed on public record An IBC s register of shareholders is available for inspection only by shareholders or by order of the Belize courts at the request of a shareholder Shares can be issued without par value Minimum capital requirements Limited filing requirements, mainly certificate of incorporation, memorandum and articles of association, registered office and name and address of registered agent Wide range of applications IBC s can be used for financial management, investment holding, ship or property ownership, share ownership of other companies, leasing of assets, copywriting and/or licensing as well as general commercial trading No exchange control Private label company availability An IBC is not subject to mandatory auditing or minimum capital requirements An IBC is not subject to Tax Treaties or Exchange of Information Agreements with any country The officer and Directors of an IBC need not be shareholders There are no citizenship or residence requirements for directors, officers or shareholders There are no requirements to file any corporate reports with the Government regarding any offshore activities The records of the corporation shall be maintained at the registered office An IBC is not subject to currency restrictions of any type. Beltraide Support Our job is to help potential investors get the information that is needed, meet the decision makers they want, and access the financial and intellectual capital that is required to make business happen. We build relationships to make it easier for the investor to build their business, and to enjoy the benefits of one of the brightest and best tax climates in Central America and the Caribbean. Whether you are looking to locate a headquarters or expand an existing business, the Business Development Unit provides answers to the questions pertaining to site selection, community demographics, area employers, potential local investors, available incentives and more. IFSC Support Promoting and developing Belize as a center for international financial services; Protecting and enhancing the reputation of Belize as an offshore financial center; Providing appropriate supervision and regulation of international financial services, Formulating policies and providing advice and assistance to the government on the regulation of such services; Collecting, storing and disseminating reliable and timely information to interested parties on changes and new trends in these services. Contact International Financial Services Commission Tel: Central Bank Tel: IBC Registry Tel:

5 Beltraide Support Serving as the country s Investment Promotion Agency, BELTRAIDE is committed to help potential investors to: Secure the requisite business establishment information, Meet the key decision makers pertaining to the proposed undertaking, Access the financial and intellectual capital that is required to make business happen. We build relationships to make it easier for the investor to build their business, and to enjoy the benefits of one of the most competitive tax regimes in Central America and the Caribbean. Whether you are looking to locate a headquarter or expand an existing business, the team is prepared to provide answers to questions pertaining to site selection, local demographics, labor composition, potential local investors, and available incentives. Develop and execute strategies and activities for increased market access for Belizean products and services; Develop, manage, and improve investment and trade business relationships; Continuously seek potential Investment opportunities for Belize; Coordinate the development and continuous update of relevant industry information for the ease of information sharing through promotional collateral material; Develop standardized promotional/marketing presentations, proposals; Analyze and identify trade opportunities by coordinating with Business and Investment Facilitation Unit and networking with other stakeholders; Provide facilitation throughout the entire investment experience; The key to the success of this Unit depends on keeping investors satisfied and motivated through our unique business development strategies. We ensure that each investor receives the support of an experienced team that is dedicated to the business growth of the local industries in the priority sectors, and strive to create and to leverage market opportunities to enhance the success of the country. We utilize our experiences and skills to provide innovative and competitive programs, marketing solutions and operational assistance to investors. Together, we are here to Make Business Happen! In the quest to investment promotion, we have dedicated a Business Development Unit with emphases on: Coordinate participation of local enterprises, and other agencies in relevant trade/investment shows, trade/investment missions, national tours, and other promotional events;

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