{"id":29446,"date":"2020-03-10T08:00:18","date_gmt":"2020-03-10T12:00:18","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=29446"},"modified":"2021-04-19T11:21:14","modified_gmt":"2021-04-19T16:21:14","slug":"setting-up-an-ibc-in-belize-the-financial-potentials","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/setting-up-an-ibc-in-belizethe-financial-potentials\/","title":{"rendered":"Setting Up an IBC In Belize\u2014The Financial Potentials"},"content":{"rendered":"

Setting Up an IBC In Belize\u2014The Financial Potentials<\/strong><\/h2>\n

To understand the advantages of creating an offshore corporation we must think of corporations as financial entities that have to comply with financial legislation. Just as individuals are nationals of certain countries, corporations and companies are also considered citizens of the state they\u2019re formed in. It becomes a lot easier to understand why people create offshore locations because the advantages of such an arrangement become clear immediately. Let’s talk about setting up an IBC in Belize.<\/span><\/p>\n

The tax advantages of managing a business from an offshore location effectively shield it against any government taxation laws. Just as a citizen of the US doesn\u2019t have to pay taxes charged in the UK, the corporation in question doesn\u2019t have to comply with UK tax laws if it\u2019s set up in Belize.\u00a0<\/span><\/p>\n

The choice of location becomes really important because you need to figure out which locations make it the easiest to meet your business and financial needs. Some people set up businesses in Hong Kong to avail the financial services in the city or to <\/span>expand into mainland China<\/span><\/a>, but that\u2019s not the only advantage of going offshore.\u00a0<\/span><\/p>\n

I\u2019m writing this article to highlight the tax advantages of going offshore. Just as certain locations around the world offer you access to new resources, better financial services or affordable labor, there are certain locations which will significantly reduce your tax burden. Setting yourself up in tax havens is perhaps one of the best ways to eliminate your tax liabilities and I\u2019ll discuss these advantages in the context of setting up an international business corporation.<\/span><\/p>\n

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What Is An International Business Company?<\/b><\/h2>\n

You can\u2019t set up an International Business Company (IBC) just anywhere. There are certain jurisdictions that allow IBC’s to be set up and carry out business operations.\u00a0 An IBC, by definition, is allowed a limited number of activities in its jurisdiction\u2014which is often limited to management and purely operational capacities. Countries like Belize, Anguilla, the Bahamas and Nevis are some countries that have IBC legislation’s in place.<\/span><\/p>\n

It\u2019s difficult to say exactly how an IBC works because it\u2019s the laws of a country that allows an IBC which determine what legal activities it can conduct in its jurisdiction. For purposes of convenience and my association with the <\/span>Caye International Bank<\/span><\/a> I\u2019ll speak about the legislation on IBC’s in Belize.\u00a0<\/span><\/p>\n

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The International Business Companies Act In Belize<\/b><\/h2>\n

The International Business Companies Act, Chapter 20 speaks of all the activities an IBC is allowed to carry out in Belize. According to the Act, a corporation qualifies as an IBC in Belize if it meets the <\/span>following conditions<\/span><\/a>:\u00a0<\/span><\/p>\n