A special purpose vehicle, or an SPV, is a company used for a special purpose, such as securing assets. This type of legal entity can be used for multiple purposes, and investors who open an SPV in Belize will benefit from the favorable business policies applicable in this jurisdiction.
In order to open a special purpose vehicle, the founders will need to follow the steps for Belize company formation. This is streamlined when working with our local team of company incorporation experts and investors do not need to be present in the country during the entire registration process.
Our team specializes in company formation, including the creation of SPVs. Additionally, our lawyers in Belize can answer important questions about important considerations when using this type of structure to isolate or secure assets.
What is the SPV?
A special purpose vehicle (SPV) is a company incorporated in Belize that is set up in order to complete a specific task or project. While there are many possible uses for this vehicle, our team briefly summarizes some of the reasons why investors decide to open an SPV in Belize:
- Risk reduction;
- Asset securitization;
- Owning and consolidating assets;
- Property holding.
Investors who would like to open an SPV in Belize for any of these purposes, or inquire about certain aspects related to one or more uses, can reach out to our local team.
How is the SPV incorporated in Belize?
The SPV is a locally registered in Belize. This means that the general process to open a company in Belize applies in its case. The current laws governing company formation in the country allow the registration of special purpose vehicles, along with other types of companies such as segregated portfolio companies.
Some of the conditions that apply to special purpose companies are summarized below:
- the name of a special purpose company will end with a specific termination (either SPV Limited or SPV Ltd.;
- the Articles of Incorporation of an SPV in Belize will be drawn up to reflect the fact that the company is one with a special purpose;
- a legal entity registered as an SPV it will not amend its articles referring to its special purpose;
- a non-special purpose company will not amend its articles to become a special purpose vehicle.
What are some of the most important aspects to consider when you open an SPV in Belize?
The special purpose vehicle can be completely separated from the company that sponsors it and, as such, the implications are minor. In the event in which the SPV faces issues such as debt or liquidation, the parent company would be removed from it and noninvolved, thus protected.
As a Belize-registered entity, the SPV remains subject to the local tax, accounting, and reporting requirements. Companies in Belize are subject to the business tax which applies to the total revenues or receipts of the legal entity, subject to certain conditions.
Before making the decision to open an SPV in Belize, we advise investors to reach out to our local team of lawyers and company formation experts for complete information and answers to common questions, such as those related to the taxation regime.
According to the Doing Business review, Belize ranks as follows:
- doing business rank: 135;
- doing business score: 55.5;
- a score of starting a business: 72.0 out of a possible score of 100;
- number of procedures to start a business (in 2020): 9.
If you need assistance to open an SPV in Belize, do not hesitate to reach out to our local team of experts. We specialize in a wide range of company formation matters and can even answer questions about residency in Belize, if you wish to remain here to do business.
Contact us for more information about company registration in Belize.