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Uses of Belize IBC’s

The International Business Company is designed to provide a vehicle with easy formation, low tax, and liberal administration, but with a distinct identity which is able to conduct its own desired business around the world. Belize IBC’s are used by a wide range of clients from large multinational companies to family owned businesses, as well as private individuals.

Belize IBC’s are commonly used in connection with the following types of activities:

  • Trading
  • Offshore Investment
  • Holding
  • Real property owning
  • Intellectual property owning
  • Shipping

Recent examples of the use of Belize International Business Companies include operations focusing on sales distribution, the invoicing of goods from one country to another, construction projects, management and consultancy services, hotel operations, importing and exporting, manufacturing and fund management.

There are also other external factors which may determine the use of a Belize IBC, including the following:

  • The Company law within the non-resident’s own jurisdiction may be far more rigid than the Belize IBC legislation or the incorporation costs may be much higher
  • A Belize IBC may provide a “local” vehicle for the non-resident through which he may invest into other parts of Central America, North and South America without a significant increase in costs
  • A Belize IBC enables a non-resident to diversify operations by utilising different companies for different assets – for example, one company to hold each ship owned. If a non-resident wants to establish a large number of companies, he will not wish to incur a great deal of expense in setting up and maintaining them.
  • The non-resident may wish to use a zero-tax vehicle in a transaction for a variety of reasons: he may, for example, wish to reduce the overall tax burden on a transaction or to disguise the ultimate origin of goods, or keep confidential his participation in the transaction.

Another popular use is in connection with trust arrangements where the trustee or the trust itself is constituted in the form of an IBC. This latter arrangement, for example, can provide distinct benefits in relation to inheritance under a life interest trust. In a properly structured arrangement, the transfer of company shares on the death of the settler (rather than whatever assets the trust holds) can provide greater freedom in estate planning.