Belize Foundation
About
International foundations were introduced approximately 100 years ago, first in Western Europe, when in 1926 the Principality of Liechtenstein created the “Law of Persons & Companies”. International foundations are the type of product that is found mostly in civil law jurisdictions as an alternative to common law jurisdiction trusts. Nevertheless many common law jurisdictions have accommodated foundations laws into their offshore legislation as well, for the reason that foundation formation is rapidly becoming very popular vehicle for asset protection and other purposes.
Foundation is often compared somewhere between a trust and a corporation, as it has characteristics that are similar to both. Just like a trust, foundation offers asset protection by transferring ownership of assets. And yet offshore foundation is a separate legal entity, unlike a common law trust, and for this reason more akin to a company.
Foundation is formed by its founder, who provides the initial assets of the foundation (also known as the endowment). And the foundation is established to reflect the wishes of the founders, who may be an individual or a corporate body. These wishes are contained in the Foundation Charter and regulations. Unlike corporation, foundation has no shares or shareholders, it rather has beneficiaries and council members. The beneficiaries of a foundation generally have no legal or beneficial participation in the foundation until the assets are actually distributed to them from the foundation.
Foundation may be used for many different purposes. But, unlike corporation, it is not intended to engage in commercial day to day activities. For this reason many choose to incorporate an offshore company which subsequently is owned by the foundation. This way one can get the protection and continuity offered by the foundation and in the same time - engage in commercial activities.
Foundations can be used for a variety of purposes but mainly it is used for commercial, charitable or individual uses.
Belize Foundation is the right choice if:
• You are looking to preserve your wealth (from political, economic or family related uncertainty).
• You want to transfer your wealth to your heirs in a tax-efficient manner.
• You want to plan your estate by maximizing benefits of your wealth for family members and others.
• You want to make a transfer of your wealth to your heirs following your wishes and not being bound to follow the laws of the country you live in.
• You want to consolidate the ownership of the assets you owe throughout the world in one location.
• You want to minimize or eliminate estate taxes that arise on the death of the founder.
Most common offshore foundation uses are:
• Wealth protection
• Inheritance/succession planning
• Protection and management of assets
• Avoidance of forced heirship rules
• Charitable purposes
• Pension funds
• Holding art collections
• Receive and manage capital and titles
• Minimizing international income, capital gains and estate taxes
• Maintenance of corporate control
• Separation of voting and economic benefits
• Employee share option schemes
• Used by corporations for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements
• Recognized in both – common law and civil law jurisdictions
Why establish a Belize Foundation?
• Belize foundation can be used for charitable or non-charitable purposes. And since the law states that any foundation that is established for both purposes, is recognized as charitable foundation, Belize foundation may further benefit from tax credits and refunds.
• As long as the founder or anyone who contributed to the foundation assets, none of the beneficiaries are residents in Belize, Belize Foundation will be exempt from local taxes:
• Belize as a jurisdiction offers a high level of anonymity
• Its location is geographically well placed in terms of international relations and access to other jurisdictions worldwide.
Foundations may hold different types of assets:
• Stocks, bonds and other securities in public or private companies
• Intellectual property
• Real estate/immovable property
• Bank assets
• Investment portfolios
• Life assurance policies
• Most other types of assets
TAX BENEFITS
As long as the founder, the beneficiaries, the property or assets, contributions to foundation originate outside of Belize, Belize Foundation is exempt form:
• Any income tax
• Business tax
• Withholding tax
• Asset tax
• Gift tax
• Profits tax
• Capital gains tax
• Distributions tax
• Inheritance tax
• Estate duty tax
• stamp duties
CONFIDENTIALITY
The Registrar only maintains a Register of International Foundations, which contains the following information for each foundation:
• The name of the foundation;
• The name and address of the registered agent; and
• The date of registration of the foundation.
NAME OF THE FOUNDATION
The name of a foundation shall end with the word “Foundation” or its abbreviation, “Found.” or “Fdn”, or its equivalent in any language using Roman script, and must not be the same or similar to the name of a foundation previously existing in Belize so as to be misleading as to the identity or activities of a foundation.
PARTIES TO A FOUNDATION
Founder
Founder of the foundation may be one or more persons, whether natural persons or corporate bodies. A founder may be a beneficiary, including the sole beneficiary, of a foundation that he establishes, but shall not serve as protector of the foundation that he established or to which he disposed property. The founder or any person, who has contributed assets to the foundation, otherwise than for full consideration, is not resident in Belize.
Foundation council
A foundation is administered by a foundation council and the council shall represent and act on behalf of the foundation in all matters, in accordance with the foundation charter. Powers and obligations of the foundation councils are contained within the foundation charter.
Protector
A foundation charter may provide for the appointment of a protector of the foundation. Generally, the protector is usually someone that the founder trusts. The powers, rights, duties and responsibilities of the protector are specified in the foundation charter and its by-laws and. In the exercise of duties, a protector is not a member of the foundation council, but does owe a fiduciary duty to the foundation, its founder and beneficiaries.
Beneficiary
Beneficiary of a foundation means a person who is identifiable by name or is ascertainable by reference to a class. Beneficiary is someone who is entitled to benefit under the foundation charter or by-laws.
A foundation may be established and exist with no beneficiaries, provided that it is established for a clear and specific purpose which is specified in the foundation charter.
PURPOSE OF THE FOUNDATION
A foundation may be established for a charitable or non-charitable purpose or for both, or for no purpose, other than the benefit of a founder or a beneficiary or both.
A Foundation may be established for purposes, which shall be clearly specified in its charter:
• The relief of poverty;
• The advancement of health, education, art, culture, sports or religion;
• The protection of the environment, fauna or flora;
• The advancement of human rights or fundamental freedoms; or
• Any other purpose which is beneficial to the community in Belize or elsewhere.
A foundation may be established and exist with no beneficiaries, provided that it is established for a clear and specific purpose which is specified in the foundation charter.
REGISTERED OFFICE OF FOUNDATION
The registered office of a foundation shall be the address of its registered agent.
DURATION OF FOUNDATION
A foundation may be established for any period or for an indefinite period.
ESTABLISHMENT PROCEDURES
The Belize foundation is governed by the Belize International Foundations Act 2010.
A foundation shall be established upon proper execution of a foundation charter or equivalent document governed by the laws of Belize by a founder and by the members of a foundation council, by which a founder makes a disposition of rights, title or interest in property to the foundation for a specific purpose, and upon registration with the Registrar.
An application for entry on the Register of International Foundations will be made to the Registrar within 30 days of the date, on which the foundation charter was executed.
Upon application the Registrar will enter the Foundation in the Register of International Foundations, allocate to the foundation registration number and issue a Certificate of Establishment, which will contain the following details:
• The date of registration of the foundation;
• The name of the foundation;
• The name and address of the registered agent; and
• The registration number of the foundation.
Upon registration with the Registrar, a foundation shall have a separate and independent legal personality in its own right and may in its name sue or be sued, plead or be impleaded in all courts of law.
Upon the disposition of property and acceptance by the foundation council on behalf of the foundation, the property ceases to be a part of the estate of the founder irrevocably, and shall be the exclusive property of the foundation as its endowment.
Information to be provided by applicants
The primary information to be provided by any applicants for a foundation is laid out in the Application Forms.
We will then prepare draft foundation charter based on the information provided.
The "Foundation Charter" is the official document required to formally register a Belize foundation and this document must contain the following information:
• The name of the foundation;
• The initial property endowment (with a certified confirmation from the registered agent);
• The name and addresses of the founder(s);
• The full names and addresses of the foundation council member(s) (may be nominee members);
• The name and address of the registered agent (mandatory);
• The name and address of the secretary if any is appointed;
• The name and the address of the guardian if any is appointed;
• The purpose of the foundation;
• Provisions (if any) for the designation of beneficiaries;
• And any other provisions which apply to the management of the foundation.
Personal information and documents for each founder/ council members/ protector and beneficiaries must be provided, as follows:
• One document evidencing identity. Certified (notarized) good quality copy of valid passport.
• One document evidencing residential address and/or operating address (if different).
• Signed application form.
The time-scale for establishing a Belize foundation primarily depends on how quickly and properly the application form and documents are provided, in general Foundation can be established within two weeks’ time.
REGULAR FEES
Belize International Foundation
The following is an indication of the fees and other charges involved in the acceptance / establishment of Belize International Foundation, and the relevant annual running costs.
| International Foundation Formation Includes our time for drafting and settling a new standard form Foundation charter and time required for standard compliance work; registration of the Foundation as a Belize International Foundation. | $ 950 |
| Annual fee for the provision of Foundation council member, provided by us. | $ 750 |
| Annual fee for the provision of Foundation secretary, if provided by us. | $ 100 |
| Government Fee for registration of a Belize International Foundation. | $ 100 |
|
Annual fee for the provision of Foundation Agent. Retaining a Foundation Agent in Belize is mandatory for all Belize International Foundations. |
$ 250 |
|
All other services will be charged for time spent at the standard hourly rates appropriate to the relevant members of staff involved, as follows: Directors: Senior members of staff: Administrative staff: |
$250 per hour $200 per hour $100 per hour |
| Disbursements (telecommunications, courier delivery, copying, etc.) | at cost |
All fees for non-standard services, which are based on time spent and the nature and complexity of the work involved, are generally discussed and agreed with clients in advance.
TERMS OF PAYMENT.The only ground of payment is an official invoice, issued by Fidelity Corporate Services Ltd. Please do not remit any payment before all order/renewal details are clarified and a detailed services invoice is issued. Unless specifically agreed otherwise, full payment is required before any services are provided.
Please do not remit any payment before your order is confirmed and accepted by us.
Payments can be made by bank wire transfer or by a credit card.
Alternative payment methods may be available - please consult with our staff.
Payments by a bank wire transfer: our bank account details will be provided along with the invoice. All remitting bank charges and any intermediary bank charges must be borne by the payer.
Payments by a credit card: a secure online payment facility is available to all our registered customers. The standard currency for payment is US dollars. Euro (SEPA) payments are accepted – please request a quote.
Payment deadlines must be met. Late payments for company renewal will result in Government fines and will require extra costs to reinstate the company in good standing. Receipt of an incomplete amount will result in no work done on the respective order, until full payment is received.
For all matters relating to fees, invoicing and payments, our “Terms and Conditions” are applicable. The “Terms & Conditions” are available for download from our website.
***Fidelity Corporate Services is a group of professional firms with offices located in Seychelles, British Virgin Islands, Belize and Latvia
Fidelity Corporate Services (Seychelles) Ltd is licensed in Seychelles under the Seychelles International Corporate Service Providers Act, 2003 and regulated by the Seychelles International Business Authority.
