Belize

Among the many jurisdictions in the world, Belize stands out as one where the regulated brokerage license is among the most inexpensive.

overview

Belize

Belize is a Central American country by the coast of Caribbean Sea.

Belize has put in place one of the most comprehensive forex regulatory frameworks, as a means to develop a healthy and competitive forex industry.

The industry is regulated by the International Financial Services Commission (IFSC).

The Belize Forex Brokerage License represents one of the most inexpensive regulated brokerage options available. This jurisdiction features a competitive forex industry legislation infrastructure, in a well-regulated framework.

While Belize might be a latecomer in the international finance scene, the government has enacted appropriate laws to create a healthy ecosystem for the industry to blossom.

To obtain the license, your company must be registered in Belize.

The capital requirement for this license currently stands at USD 500,000.

  • Time Frame: About 6 Months
  • Taxation:
    • 3% (Local sales lower than BZD 3 million)
    • 1.75% (Local sales more than BZD 3 million)
    • 0% (Income derived from overseas).
  • License: Forex Brokerage License

For each Director, Shareholder and Ultimate Beneficial Owner:

  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Proof of Address
  • Notarized / Certified True Copy of Bank Statement
  • Bank Reference Letter
  • Notarized / Certified True Copy of University Diploma
  • Curriculum Vitae (C.V.)

 

For each Corporate Shareholders of the company:

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of associations
  • Articles of Incorporation
  • Register of Directors  
  • Register of Shareholdings
  • Certificate of Good Standing (if the company is over a year old)
  • Signed and Notarized application forms

 

Other Required Documents:

  • Liquidity Provider Agreement
  • Proof of Source of Wealth
  • Bank Reference Letter stating that the authorized person has an account that it is in good standing.
  • Copy of share certificates demonstrating the shareholding distribution.
  • A 5 year business plan.
Company structure:
  • One shareholder (natural or legal person, no nationality restriction)
  • One resident director (natural or legal person)
  • The meetings of the directors and the shareholders need not be held in Belize
  • There is no requirement for an Annual General Meeting.
  • All meetings may be held outside of Belize, including by video conferencing or other electronic means.
  • Directors and shareholders may vote by proxy.

Confidentiality:
  • Beneficial owners’ details – Can only be disclosed under court decision
  • Shareholders’ details – Not part of public record
  • Directors’ details – Not part of public record

Taxation:
  • 0% – Forex brokerages are exempted from the Belize taxes on income derived outside of Belize.

Accounting requirements:
  • Quarterly financial reports to the IFSC (not audited)
  • Annual company statement reports to the IFSC
  • Audit of the company’s financial reports to the IFSC

Others:
  • Secretary – Optional but it is customary to have one
  • Local office – Not Required
  • Local employees – Not Required
  • Legal Framework: International Financial Services Commission (Licensing) Regulations 2007
  • Regulatory Authority: International Financial Services Commission (Belize IFSC).
  • Capital Requirement: USD 500,000

 

Permitted Activities:

  • As stipulated in the International Financial Services Commission (Licensing) Regulations 2007, licensees are allowed to engage in forex trading, trading of commodity-based derivative instruments (securities, futures, options, contract for differences etc) or the operation of brokerages.
  1. Compilation and preparation of all of the documents, including due diligence documents.

  2. Get ready the BZD 500.000 as the requirement of paid up capital. This requires registering a Belize company that issues 100,000 or more shares.

  3. Preparation of Anti-Money Laundering (AML) procedures and custom tailored business plan.

  4. Submission of the due diligence documents and other related documents to the IFSC to start the process of application.

  5. Account opening in a local Bank for satisfying paid up capital requirements. All the bank forms, corporate documents and due diligence documents will be gathered and submitted by Offshore Tech & Intermediary Services.

  6. Ad-hoc support and provision of minor documents required during the process.

  7. Assistance with depositing of funds at a local bank account in order to satisfy capital requirement for the International Financial Services Commission (IFSC).

  8. Submission of the letter from the local bank to the IFSC that capital requirements are fulfilled.

  9. We will deliver all relevant to you once the license is issued by IFSC.
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