Open a Foundation in Belize

Investors who open a foundation in Belize may carry out a number of business and trade activities. This legal structure can be used to hold assets in its own name, and it has simple incorporation and revocation procedures. Our Belize company incorporation specialists can give you complete information on the characteristics, advantages, and uses of foundations in the country.

Who can open a foundation in Belize?

Residents and non-residents may open a foundation in Belize. There are no nationality restrictions and no conditions for residency for the founders and the beneficiaries.

What is an international foundation?

When the foundation is set up by a non-resident, none of the beneficiaries are residents, and the endowment does not include shares in a Belizean company or land located in Belize, the legal vehicle will be referred to as an international foundation.

What are the parties to a foundation?

A foundation is a legal vehicle incorporated by a founder for the benefit of beneficiaries, as named by the founder, with an endowment or pool of assets used for its goals (charitable or solely for the benefit of the beneficiaries).

Can a foundation be used for asset protection purposes?

Yes. Investors may open a foundation in Belize to dispose of a property as part of its endowment and thus ensure its protection against creditor claims. However, the Supreme Court may invalidate this provision should it be shown that the foundation was created under duress or for an unlawful purpose.

What are the steps required to set up a foundation in Belize?

Foundations in Belize are incorporated by following a set of steps, starting with the duly filled-in forms. Investors can request the specialized aid offered by our Belize offshore company formation firm, and one of our agents will assist you throughout all of these steps. The main requirements are as follows:

• Pay the necessary fees: this step includes all the necessary payments for the incorporation of the foundation, including any service fees if working with a professional incorporation company.
• Fill in the needed forms: these include a standard application form for the establishment of the foundation and the declarations of the founder and beneficial owner.
• Provide personal information: this can also be referred to as a due diligence phase; our agents will need you to provide copies of your identification documents and the incorporation documents when the foundation is set up by a company;
• Provide needed accounting documentation: accounting documents and references as well as any needed bank statements; a declaration is also requested in most cases.

What documents do I require to open a foundation in Belize?

Foundations in Belize are separate legal entities. This is an important distinction for all investors who want to open a company in Belize.

The following are the documents needed for opening a Belize foundation:

• chosen name;
• initial deposit/endowment;
• the identification details of the founder, secretary, beneficiary, etc.
• the stated purpose and the Bylaws.

What are the most important requirements for foundations in Belize?

The name of the foundation shall end with a certain abbreviation (it can be Found. or Fdn.). In any case, it cannot be the same name (or similar to) the name of a foundation that already operates in Belize. The chosen name is to be written in Roman script.

An international foundation can only be set up by a licensed registered agent in Belize. The legal office of the Belizean foundation is the registered address of its agent.

Investors should know that the endowment of an international foundation cannot include land in Belize (other than premises used as its office) and must be licensed in Belize for the purpose of conducting most banking and insurance activities.

What laws govern the incorporation of foundations in Belize?

The incorporation, management, and use of such a legal entity are governed by the International Foundations Act.

The Act governs international foundations, which are understood to be:

• Foundations whose founders are persons who are not Belizean residents;
• Those in which the beneficiaries are not Belizean residents;
• The assets placed in the foundation do not include Belizean land or shares in a company that owns land situated in Belize.

How is the foundation registered in Belize?

Foundations are established via the registration of their charter with the Registrar of International Foundations (operating as per section 108 of the International Foundations Act). Only upon proper registration does the foundation gain separate legal personality, similarly to the process required for company formation in Belize (when a company, after registration, obtains legal identity, it can enter into agreements, sue, and be sued).

The following is essential to how the assets placed in the foundation are handled and the role of the key members:

• The foundation council cannot personally own the endowment;
• The role of the council is to administer the foundation’s endowment for the benefit of the beneficiaries or for the charitable purposes of the foundation;
• Creditors and members of the foundation council cannot have any rights to the foundation’s endowment;
• One can open a foundation in Belize that has no beneficiaries; however, in this case, the said entity will be established for a specific purpose (as provided for in its charter).

What are some of the costs associated with foundation creation in Belize?

The International Foundations Regulations provide for certain registration and annual fees when setting up these types of structures.

Investors who open a foundation in Belize benefit from low fees, at USD 200 (once for the registration and afterward, for the annual renewal). However, apart from these fees, founders may also pay others, such as service packages or name reservation fees, as may be the case.

Other costs, as set forth by the Belize Companies and Corporate Affairs Registry (BCCAR), can include:

• The name reservation fee for an initial 90 day-period of USD 25. The renewal of this period (its extension) costs another USD 25;
• The extension of time for entry on register has a fee of USD 50 (should the initial registration window require an extension for the preparation of documents, for example);
• Changes in the foundation’s particulars are subject to a fee of USD 100.

What are the advantages of opening a foundation in Belize?

The foundation in Belize enjoys a tax-free regime. This is an important characteristic for those who want to open an offshore company in Belize. Although it is tax-exempt, it must keep accounts and records (Part IX of the International Foundations Act) and, since 2023, keep its accounting records in Belize at its registered office or registered agent.

The foundation has a broad usage spectrum, which includes the ability to operate bank accounts, hold assets, and buy or sell real estate. Foreign laws or judgments cannot render any Belize foundation void. This is a simple business structure, with very few administrative and maintenance requirements.

For more details on how to open a foundation and for specialized assistance during this process, we invite you to contact our Belize company registration agents.

Businessmen who need company formation services in other countries, for example, for starting a foundation in Switzerland, can receive specialized assistance from our partners – CompanyFormationSwitzerland.com.