A foreign company may choose to open a subsidiary in Belize as a way to start doing business in this jurisdiction. The subsidiary will be a locally registered company that is fully or partly owned by the overseas entity. Foreign companies interested in knowing more about how to open a subsidiary can send their questions to our experts in company formation in Belize.
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What are the general requirements for those who open a subsidiary in Belize?
The incorporation of a subsidiary in Belize is a more complex process compared to that required to open a branch. This is why our team that specializes in company incorporation in Belize offers complete incorporation packages for these types of structures.
A subsidiary is expected to obtain special permits and licenses and licensing is, for example, mandatory in business fields like banking and financial services.
What documents are submitted by overseas companies opening a subsidiary?
Overseas companies are required to submit several documents when they open a subsidiary in Belize. These requirements apply in the case of all forms of business that can be registered by an overseas company doing business in Belize, the other options being the branch and the representative office.
The following list of documents is required for foreign companies that will open a subsidiary in Belize to expand activities that are approved and licensed by the Financial Services Commission:
- The application letter which contains the proposed name (which must be available for use in Belize) and information about the subsidiary’s registered office (if this business form will maintain a physical presence in Belize);
- The motives behind the overseas company’s decision to open a subsidiary in Belize;
- The main types of activities it will engage in, with information about the targeted clients;
- A business plan (with a comprehensive approach that also mentions the projected financial statements, the business strategy and the long-term objectives);
- The funding strategy for the subsidiary and the parent company’s level of involvement in its activities (as the subsidiary is controlled by the foreign company owning shares in it);
- The subsidiary’s management structure and ownership structure and other relevant information about its set up.
The list above is not an exhaustive one and foreign companies may be required to submit other documents when they open a subsidiary in Belize. Pre-registration guidance is available from our team. Our team can also answer questions if you want to open a company in Belize that is not controlled by a foreign entity based abroad.
How is a subsidiary taxed in Belize?
Corporate income tax in Belize applies according to the activities the company engages in. Some examples include:
- 15% tax on the income of licensed financial institutions, namely banks;
- 1.75% tax on the gross receipts of income from real estate businesses and insurance companies;
- 8% gross earnings tax for casinos and other gambling activities;
- 6% on the receipts of building contractors (for the first 40% of the contract price).
Please keep in mind that these are just some examples of the applicable business taxes in Belize. Understanding how this tax is enforced in the case of a subsidiary can be further detailed by our accountants in Belize.
In addition to information about the applicable taxes, our accountant can also give you details on the filing deadlines and other compliance requirements. We also offer these services to those who open a company in Belize in a different form, not necessarily a subsidiary of a foreign company.
Contact us for more details about the process and the registrations required to open a subsidiary in Belize.