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.
The incorporation, management, and use of such a legal entity are governed by the International Foundations Act. Our Belize company formation specialists can give you complete information on the characteristics, advantages, and uses of foundations in the country.
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Reasons to open a foundation in Belize
A foundation may be formed for charitable or non-charitable purposes as well as for ordinary purposes.
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. Because it has no tax liabilities, it lacks any accounting and auditing requirements.
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 as void. This is a simple business structure, with very few administrative and maintenance requirements.
Main steps for establishing a Belize foundation
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.
Main documents for opening 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.
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 operated in Belize. The chosen name is to be written in Roman script.
The registered office of the Belizean foundation is the registered address of its registered agent. To better understand the requirements for appointing the agent, you can discuss the conditions with our team specializing in Belize offshore company formation.
Investors should know that foundations in Belize cannot be used to own property or assets and must be licensed in Belize for the purpose of conducting most banking and insurance activities.
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.
Governing law and provisions for foundations in Belize
As previously stated, the main law that governs foundations in Belize is the International Foundations Act, 2010, with its subsequent modifications and additions. 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.
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).
The foundation can adopt its own Bylaws. These can include special provisions, such as:
- How the endowment is distributed;
- How beneficiaries are named, if certain classes thereof apply and how additional beneficiaries can be added once the process to open a foundation in Belize has been completed;
- Main guidelines and procedures to be followed by the council;
- Any other relevant provisions. All the provisions are to be drawn up in writing and signed by at least one member of the foundation.
Other information on doing business in Belize
If you are interested in other matters, such as how to acquire Belizean residency, our team can answer your questions. We can give you more information about permanent and temporary residency if you are unable to remain in Belize for a longer period of time due to your commitments outside of the country.
Our lawyers in Belize, specializing in business and corporate law, can answer any questions about the formation of a foundation from a legal perspective. We assist clients who are interested in trust and foundation creation, as well as those who have questions concerning offshore company creation and management. We also answer questions about tax and employment law, real estate and other matters.
For foreign investors who are already in the country, as well as those who plan on remaining in Belize and going through the residence process, our team can answer essential questions about the conditions for a minimum legal residence, as well as the requirements for showing one’s financial stability during the stay. You can reach out to us if you are interested in immigration to Belize.
At the end of the immigration process, you may also wish to apply for Belizean citizenship. This means that you have already spent at least five years as a permanent resident in the country, and that you have not left the country for more than thirty consecutive days (or accumulated more than three months of leave in any twelve-month period). Our team will give you more details if you are interested.
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.