Foreign exchange, or Forex for short, is one of the most attractive and lucrative trading markets. Investors who trade in foreign currency will need to apply for the Forex trading licenses in Belize.
Applying for a special Forex trading license
Companies in Belize
that offer Forex services need to have a license for these types of activities. Belize is a country where the application process for this type of license is a simple one.
Companies that operate on the base of a Forex trading license can run a foreign currency brokerage firm and can provide trading services to their clients. When applying for a Forex trading license in Belize, companies have a high chance of obtaining the proper license when members of the company’s management team are financial experts and have relevant experience in this field.
Some of the benefits of having a Forex trading license include low operation, ownership and renewal costs, affordable license fees, simple approval process and simple due diligence requirements. There are no restrictions on nationality and no requirements for special accounting and bookkeeping.
Our Belize company registration experts
can help you with this application procedure and can also answer any other questions you might have about special licensing
and conditions for Belize companies.
The process of obtaining a Belize Forex trading license
Our team who specialized in Belize offshore company formation can also help you apply for and obtain a Forex trading license. Company owners are advised to request specialized services so that the procedure will be handled as fast as possible and with low costs.
Companies that apply for a forex trading license in Belize need to follow a few requirements. The most notable of these are outlined in the list below:
Have the qualifications needed to trade in foreign currencies: this applies to the directors of the Belize company who must have the relevant expertise in the field of FX trading.
The company must have an adequate capital: a mandatory requirement is in place for Belize companies that wish to engage in this type of activity, namely, they must have a minimum paid-up capital
Present the required documents: together with the application for a license, the company will also present documents such as the business plan and the financial forecast for the upcoming years
Bank confirmations: these refer to a confirmation from the bank that the statutory capital of the company has been paid-up when applying for the license
Open a Forex company in Belize
Investors who wish to open a company that will be engaged in activities related to trading in foreign currencies follow the general incorporation procedure.
Belize is a jurisdiction that allows full foreign ownership and imposes no restrictions on nationality. This means that foreign investors are not required to reside in the country in order to manage their company, nor are they prevented from opening and operating a business based solely on their nationality.
Conditions to apply to foreign investors and it is expected that those who open a Forex company in Belize will comply with the ongoing requirements for company incorporation, management and control, as well as the requirements that are particular to the financial services sector.
Companies in Belize are subject to a low taxation regime that is attractive to foreign investors, compared to the tax rates in other jurisdictions.
Different tax and filing rules apply based on the type of company one incorporated when they open a Forex company in Belize, however, the effective tax rate remains a low one.
Investors have the option to open a local, limited liability company, or an international business company, the commonly used IBC.
The main steps needed to open a Forex company are the following:
- Conduct a name search with the Registry;
- Prepare the company documents that will specify the trading/Forex activities;
- Register the new business by filing a registration application, along with the company’s constitutive documents;
- Open a bank account for the company in Belize;
- Apply for the needed licenses and start trading.
For the IBC, the following requirements are in place in terms of the company’s structure:
- Shareholders: the company needs to have at least one shareholder who can be an individual or another legal entity;
- Directors: the IBC will have at least one director (natural or legal person) and there are no requirements for residency.
- There is no mandatory requirement for a company secretary, however, the company is required to have a registered agent in Belize and also a registered address in the jurisdiction.
Company formation in Belize has a distinct particularity: the company founders enjoy a high level of confidentiality. Although the founders and the directors are required to provide their identification documents when opening the company, there is no mandatory requirement for their public disclosure.
Forex company taxation in Belize
Belize can be regarded as a low tax jurisdiction. Presently, all companies, whether tax residents or non-tax residents, are liable for taxation, albeit the rate of the tax is a low one.
An international business company, (IBC) the business form used for offshore purposes, is not a resident for tax purposes if the following conditions apply simultaneously:
- the company is not physically present in Belize;
- it derives the income from outside of Belize;
- it is liable to tax in another jurisdiction.
Under the present taxation and reporting rules, the IBC is also required to file a monthly tax return and pay the required taxes.
Companies, including the IBC, are also required to provide adequate financial information. Audited documents are only provided if expressly required.
The current tax rates that apply to those who open a Forex company in Belize are the following:
· 1.75% of the chargeable income in case of companies with a gross receipts from business operations of more than 3 million BDZ – in case of the IBC;
· 3% for companies with gross receipts of less than 3 million BZD – in case of the IBC.
Compliance with the local tax and filing rules is mandatory and first-time investors in Belize can rely on the assistance provided by our team.
Conditions for companies in Belize
The minimum capital requirements may depend on the types of financial services offered by those who open a company in Belize
. Activities that include trading in forex and those related to other financial instruments (stocks, futures, etc.) will require a capital of approximately 100,000 USD. One of our agents can give you further information on how to open a company and the importance of the minimum share capital.
Companies in Belize need to obtain special permits and licenses, depending on the business activities they engage in. while Forex trading and trading in foreign exchange, in general, are regulated, other activities such as money brokering, broker and advisory services in the financial sector will also require special licenses.
You can contact us
if you have any questions about the special conditions needed to open an offshore company in Belize