Foreign exchange, or Forex for short, is one of the most attractive and lucrative trading markets. Investors who trade in foreign currency will need to apply for the Forex trading licenses in Belize.
Our Belize company formation agents can assist companies in the process of applying for and obtaining a Forex license.
Companies in Belize that offer Forex services need to have a license for these types of activities. Belize is a country where the application process for this type of license is a simple one.
Quick Facts | |
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Forex broker obligation in Belize | Yes |
Forex broker license in Belize for foreign brokers (Yes/No) | Yes |
Forex broker license in Belize issuing authority | The Financial Services Commission (FSC) |
Relevant laws governing brokerage | The Belize Financial Regulatory Framework |
Special license for brokers | Brokerage/Consultancy/Advisory Services for Trading in Securities License |
Laws to be observed for licensing | The Income and Business Tax Act, the Economic Substance Act, the Money Laundering prevention Act, etc. |
Conditions for licensing | The Licensee needs to maintain a minimum paid capital, as well as establish any branch/subsidiary/representative office only with the approval of the FSC. Other conditions also apply. |
Management requirements | The management structure (once approved) cannot be changed unless approved by the FSC. |
On-site inspection for licensing | Yes |
Application documents | Proof of meeting the IBC registration and minimum capital requirements, information about the founders, brokers, etc. |
When to apply | Before commencing the licensed activities. |
Costs to expect | The license for trading in foreign exchange is subject to a fee of US$ 25,000. |
Assistance for application | Our team provides complete assistance for licensing as per the Belize IFSC requirements. |
Forex broker license issue time (approx.) | More than 1 month in most cases. |
Reasons to apply for a Forex broker license in Belize | The easy IBC company formation process, no requirements for mandatory residence in Belize, and favorable taxation regime for the IBC. |
Companies that operate on the base of a Forex trading license can run a foreign currency brokerage firm and can provide trading services to their clients. When applying for a Forex trading license in Belize, companies have a high chance of obtaining the proper license when members of the company’s management team are financial experts and have relevant experience in this field.
Some of the benefits of having a Forex trading license include low operation, ownership and renewal costs, affordable license fees, simple approval process and simple due diligence requirements. There are no restrictions on nationality and no requirements for special accounting and bookkeeping.
Our Belize company registration experts can help you with this application procedure and can also answer any other questions you might have about special licensing and conditions for Belize companies.
Our team who specialized in Belize offshore company formation can also help you apply for and obtain a Forex trading license. Company owners are advised to request specialized services so that the procedure will be handled as fast as possible and with low costs.
Companies that apply for a forex trading license in Belize need to follow a few requirements. The most notable of these are outlined in the list below:
We invite you to watch a video about this type of license:
Investors who wish to open a company that will be engaged in activities related to trading in foreign currencies follow the general incorporation procedure.
Belize is a jurisdiction that allows full foreign ownership and imposes no restrictions on nationality. This means that foreign investors are not required to reside in the country in order to manage their company, nor are they prevented from opening and operating a business based solely on their nationality.
Conditions to apply to foreign investors and it is expected that those who open a Forex company in Belize will comply with the ongoing requirements for company incorporation, management and control, as well as the requirements that are particular to the financial services sector.
Companies in Belize are subject to a low taxation regime that is attractive to foreign investors, compared to the tax rates in other jurisdictions.
Different tax and filing rules apply based on the type of company one incorporated when they open a Forex company in Belize, however, the effective tax rate remains a low one.
Investors have the option to open a local, limited liability company, or an international business company, the commonly used IBC.
The main steps needed to open a Forex company are the following:
For the IBC, the following requirements are in place in terms of the company’s structure:
Company formation in Belize has a distinct particularity: the company founders enjoy a high level of confidentiality. Although the founders and the directors are required to provide their identification documents when opening the company, there is no mandatory requirement for their public disclosure.
Belize can be regarded as a low tax jurisdiction. Presently, all companies, whether tax residents or non-tax residents, are liable for taxation, albeit the rate of the tax is a low one.
An international business company, (IBC) the business form used for offshore purposes, is not a resident for tax purposes if the following conditions apply simultaneously:
Under the present taxation and reporting rules, the IBC is also required to file a monthly tax return and pay the required taxes.
Companies, including the IBC, are also required to provide adequate financial information. Audited documents are only provided if expressly required.
The current tax rates that apply to those who open a Forex company in Belize are the following:
Compliance with the local tax and filing rules is mandatory and first-time investors in Belize can rely on the assistance provided by our team.
The minimum capital requirements may depend on the types of financial services offered by those who open a company in Belize. Activities that include trading in forex and those related to other financial instruments (stocks, futures, etc.) will require a capital of approximately 100,000 USD. One of our agents can give you further information on how to open a company and the importance of the minimum share capital.
Companies in Belize need to obtain special permits and licenses, depending on the business activities they engage in. while Forex trading and trading in foreign exchange, in general, are regulated, other activities such as money brokering, broker and advisory services in the financial sector will also require special licenses.
Investors who wish to know more about the various laws that govern corporate licensing and various financial activities can forward their questions to our Belize lawyers. We offer legal counsel and representation and our team covers many areas of practice, starting with corporate services focused on business creation and compliance, as well as intellectual property or real estate matters.
Apart from special licenses for companies, our team can also answer questions about residency in Belize. We can help you understand if you meet the temporary and permanent residence conditions, as well as gathered and documents you need to submit your application. We can also give you details about the current fees and the generally expected response time.
If you are interested in any matters concerning immigration to Belize, before of after making an investment in the country, our team can answer them and guide you through the residence process. In order to gain the right to remain in the country for long-term purposes (as it can be necessary to run one’s business), the applicant will need to meet a set of conditions.
Belizean citizenship can also be an option through the registration procedure (not available to Guatemalan nationals), through marriage, or through descent. The first option is usually the most common and it is preceded by a period of at least five years spent in the country as a permanent resident. Our team will give you more details if you are interested in acquiring this status.
You can contact us if you have any questions about the special conditions needed to open an offshore company in Belize.