Our team assists those who want to open a fund in Belize. The Mutual Funds Act recognizes three different types of offshore investment funds in Belize. These can generally be categorized according to their openness to the general public and according to the types of investors who use them. Foreign investors open a company in Belize or incorporate an investment fund because of the favorable business regulations and the lack of taxes on profits, including for those obtained from the fund.
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Public funds in Belize
A Belize public fund is one that, as its name suggests, offers its shares to the general public. Registration is mandatory for this type of fund, and there is a certain degree of control and regulation for it. For example, it is required to submit audited annual financial statements.
When the fund is created, the names of the directors, administrators, and managers are disclosed in the application for registration. Complete transparency is required as a means of protecting the investor’s rights and particularly because it is an open fund which may be accessed by any individual.
Private funds in Belize
In contrast to the public fund, the private investment fund in Belize may have no more than fifty investors and may not sell its shares openly. The founders will be required to prove the private nature of the fund upon registration and for this purpose, the fund will need to set forth specific regulations and criteria for qualifying investors. This specific regime of the private fund is subject to approval.
One of our Belize company registration agents can help you with complete information about the requirements applicable to a private investment fund.
Professional funds in Belize
The professional fund is one that is open solely to professional investors and will impose a specific minimum amount that is required from each of these experienced investors. For the purpose of this specialized type of investment fund in Belize, the professional investor is either an individual who has an investment portfolio and is aware of the usual investment strategies, risks, and gains, or an individual who acknowledges the investment particularities and risks and may be qualified as a high net worth individual.
Private and professional funds in Belize are not required to go through the same registration procedure as the public ones. They benefit from lighter requirements, and one of our Belize offshore company formation agents can give you more details.
Conditions for fund registration in Belize
To open a fund in Belize, according to law, the chosen legal form must be duly registered once it is incorporated.
As previously mentioned, a public fund set up under the Mutual Funds Act can take the form of a company, partnership, or unit trust. What follows is the registration of the fund, and some of the most important documents prepared for this purpose are listed below by our Belize company formation specialists:
- The application for registration, duly filled in;
- Information on the fund, which includes its legal form, information on its country of origin (if it is a foreign fund), the law that governs the fund (as applicable);
- Details on the fund officers, such as the directors, general partners, and trustees. Their qualifications and some personal information (such as place of residence and citizenship) are required;
- Information on other key persons related to the fund. Included here are managers, administrators, or custodians;
- References, which refer to a bank reference, as may be required, and/or a police clearance certificate for the fund officers. Our team can give you more details on these documents once you decide to open a fund in Belize.
Any issues with the fund officers (such as having been involved in civil proceedings, having been charged with certain types of offences of having been declared bankrupt) are to be disclosed for the purpose of fund creation and its final registration with the authorities.
Regardless of the type of offshore investment fund in Belize that one decides to open, the deponent will sign an affidavit noting the conformity of the information offered for the purpose of fund registration.
Fees required for fund registration in Belize
As part of the steps required to open a fund in Belize, the founders will be asked to pay certain fees, as per the Mutual Funds Act Schedule 2. Please keep in mind that the amounts listed below by our Belize company formation specialists are for information purposes only, and they can be subject to change. Moreover, these are not the only costs associated with fund creation in this jurisdiction:
- $500 for the application for registration;
- $350 for the application for fund recognition;
- $250 for the application for license;
- $100 for the registration consent.
In addition to these registration fees, other annual fees apply. These can depend on the type of offshore investment fund in Belize, and some examples include a $500 fee for a registered public fund or $350 for a recognised private or professional fund.
Complete assistance for those who open a fund in Belize
We can also assist those who are interested in Belize offshore company formation, in addition to fund creation.
Our local team of attorneys in Belize offers assistance to investors interested in exploring the local investment opportunities. We offer legal guidance in a variety of corporate matters, starting with corporate creation, real estate, immigration, and wealth management solutions, intellectual property law, and employment. Reach out to us to find out more about our solutions.
If you have questions about how you can relocate to the country, once you have made an investment here or for this very purpose, our team can answer questions about immigration to Belize. The residence process is one that starts with the application for a temporary residence permit, followed by a permanent residence permit, if the applicant qualifies for this status. We can give you more details as needed.
If you are already a permanent resident, after five years, you can apply for citizenship in Belize. Other conditions are important, such as the maximum period one can be absent from the country if they wish to apply for this status. Our team can give you details about the application process, the needed documents, fees, and the expected processing time.
Please contact us for more information on the Belize Mutual Funds Act and the policies for funds in the country.