Belize Foundation

PDFPrintE-mail

BELIZE FOUNDATION

Legislation for the Belize foundation was passed in 2010.  Under this Foundation law, charitable, non charitable and non-purpose foundations can be set up very quickly and without much hassle. Belize foundations can be founded by one or more individuals or by a corporation with a single member council. Formation of the Belize foundation can be accomplished within one week.

The Belize foundation, like other offshore foundations is a vehicle commonly used for asset protection and estate planning.  Foundations are likened to a cross between a corporation and a trust; offering asset protection by transferring ownership of assets (as with a trust) and like a corporation, it is a separate legal entity permitted to own bank accounts, enter into contracts and agreements.

Assets endowed (put into) a Belize foundation are wholly independent from that of the creator/ founder (the person who forms the foundation)  In this capacity the foundation functions very well to provide critical asset and wealth protection.

Advantages of Belize Foundation

  • Belize foundation can be used for charitable or non-charitable purposes and other non specific purposes.
  • Where a foundation is used primarily for non charitable purposes, it is deemed a charitable foundation if any (unlimited, no matter how little) part of the foundations is used for a charitable purpose. This is advantageous if the foundation is operating in a jurisdiction that offers tax refunds, credits or rebate on to charitable foundations.
  • Belize foundation cannot be voided or revoked (by other jurisdiction's rulings) and are not accountable to foreign laws or judgments.
  • Disputes and other confrontational matters arising involving the foundation, may be settled through arbitration (may be settled out of court).
  • Belize foundation can exist for perpetuity with no limit on the foundation's duration.

Uses of Belize Foundations

A Belize Foundation can be used for:

  • Asset protection or estate planning for family purposes or business purposes;
  • As a holding entity (business foundations);
  • For increased confidentiality and discretion;
  • To be able to legally separate assets from personal holdings;
  • For philanthropic reasons for the benefit of social and charitable groups.

Characteristics of the Belize Foundation

The Foundation charter is the official document of the Belize foundation.  This document contains all the pertinent details of the foundation such as the name, the purpose, the initial property value (cannot be less than US10, 000) of the foundation; the name and address of the registered agent; the names and addresses of key parties: Members, beneficiaries.  This charter must be filed in English or any other language with a certified English translation.  The information on the charter is private and only excerpts of this document are transcribed and noted by the registrar.

The Belize foundation can have a separate set of private rules or instructions called the By-lays which deals with the administration of the foundation, asset distribution, the beneficiaries and other guidelines and policies. The By-laws are not disclosed to the registry and only available to the foundation council members.

Foundation in Belize must have a council, with at least one member (which can be a person or a corporate body) who has the responsibility to carry out the objectives and purposes of the foundation.

Belize Offshore Foundations Requirements:

- Belize offshore foundation may be declared by one or more person, individual or corporate entity;

- The foundation must at all times:

  • Have a registered agent in Belize;
  • Have a resident secretary  (may appoint the resident agent to act as secretary);
  • Have a foundation council with one or more person, whether corporate entities or individuals;
  • Maintain a register of the foundation council members, the guardian, the secretary, the beneficiaries, and the auditor (where applicable) and shall be held by the secretary or registered agent.

Belize Foundation Taxation & Fees

All Belize Foundations are exempt from all taxes and stamp duties.

Belize Offshore Foundation, shall not:

  • Do business with residents of Belize.
  • Own interest in real property in Belize.
  • Carry on business in banking or insurance business except if the appropriate license is granted.

Belize Foundation may:

  • Have professional contact with local licensed offshore service providers, lawyers, accountants, investment advisors etc.
  • Hold meetings in Belize.