1. [Core business and tax advantages] of choosing to set up a foreign exchange company in Belize
purely tax-free dividends
Belize International Business Company (IBC) is a tax-exempt company. As long as no commercial services are provided within Belize, Its foreign exchange income from abroad is completely exempt from local income tax., Achieve ultimate profit retention.
High privacy protection
Belize offshore companies have excellent privacy protections. The law clearly stipulates, No requirement to disclose private information of shareholders and directors to the public, Provide a safety barrier for the actual controller.
Free circulation without foreign exchange controls
Belize has no exchange control mechanism (Exchange Control). Absolute freedom of entry and exit of corporate funds, Bank accounts can be opened worldwide, Perfectly meets the high-frequency capital settlement needs of the foreign exchange industry.
High credibility brought by strong supervision
Through the implementation of the Economic Substance Law and 50 Extremely high capital threshold of 10,000 US dollars, Belize License Escapes 'Shoddy Offshore' Label, Widely recognized by global international banks and top payment providers.
2. Statutory breakdown of Belize IFSC financial licenses and extremely high capital floors
| Statutory license type | Definition of legal business authority | Minimum paid-in capital requirements (2018new regulations) |
|---|---|---|
| Class VI license (Trading in foreign exchange) |
Exclusive foreign exchange dealer license. Allowed to operate as a Forex brokerage firm, Provide customers with an online trading platform, Handling client trading accounts and related foreign exchange services. | 500,000 Dollar (half a million dollars). The standard was significantly improved in 2018, and must remain frozen in a bank account in Belize for the duration of the license.. |
| Category 7 license (Derivatives and securities trading) |
Financial Securities Dealer License (Type J License). Authorized to engage in commodity derivatives trading, and futures, options, interest rate, Forex tools, ownership, contract spread (CFD) Waiting for transaction. | 500,000 Dollar (half a million dollars). Holding this type of license is a truly fully authorized foreign exchange and derivatives broker.. |
| Class 8 and 12 licenses (Brokerage and advisory services) |
Category 8: Currency Broker License; Category 12: Providing consultation, License for proposed services. All companies providing foreign exchange advisory or brokerage services must be licensed. | Does not involve holding large client fund positions, Specific margin requirements are usually lower (e.g. 5 million U.S. dollars), Approved by IFSC. |
3. [Hard red lines on corporate structure and personnel] for setting up a licensed foreign exchange company in Belize
1. Office of Economic Substance and Entity: by 2019 Constrained by the Economic Substance Act, The company must have at least one physical office in Belize, Demonstrate that its core income-generating activities occur in Belize.
2. Mandatory requirements for local directors: The board of directors must have at least one local director (a citizen of Belize). The directors/shareholders of the applicant company must have appropriate knowledge of the financial business, Qualifications and extensive experience.
3. Locally qualified staff: In addition to local directors, The company must demonstrate that a sufficient number of “qualified employees” are actually present within Belize to conduct the intended foreign exchange operations, and incur sufficient operating expenses.
4. Capital paid in and frozen: Shareholders must ensure that 50 US$10,000 capital requirement. Funds must be paid in full, and must be frozen in a Belize bank account while the license is valid.
5. Absolute isolation of client funds: IFSC’s written consent is required before holding client funds. Firms must segregate client funds into separate accounts, and maintain actual control.
4. [Core legal documents and KYC due diligence checklist] submitted to Belize IFSC
| Review feature categories | IFSC statutory requirements and submission details |
|---|---|
| Executive KYC and Affidavits | every shareholder, Directors must provide: Passport notarization and translation, Proof of residential address in English (within 3 months), Resume, Notarized copy of financial certificate, No criminal record certificate, And a notarized "BIOGRAPHICAL AFFIDAVIT" signed by me. |
| Forex Business Plan and AML Policy | Must submit to IFSC a very in-depth 5 Annual business plan and financial forecast. A detailed anti-money laundering (AML) policy must also be provided, KYC process and operating manual for internal and external company procedures. |
| Bank credit and capital freeze certificate | Submit the original bank credit certificate (Bank Reference Letter) issued by the bank where the account is opened, as well as 50 Official confirmation document that the legal capital of US$10,000 has been fully paid and frozen in the Bank of Belize. |
5. [Official Approval Panoramic Process] for Obtaining the Belize IFSC Foreign Exchange License
step 1: Preliminary due diligence and Belize corporate establishment
Provide the company name for registration search (if it contains the word "foreign exchange", a transaction license application must be prepared). Registering a Belize Offshore Business Company, Establish a shareholder and local director structure, Prepare notarized documents for senior executives.
step 2: Writing a business plan and opening a local bank account
Draft detailed documents as required by IFSC 5 annual business plan, Operation Manual and AML Process. Assistance with opening a local bank account at a Belize licensed financial institution, and deposit 50 Capital of US$10,000 is frozen.
step 3: Officially submit application and credit certificate to IFSC
Submit the completed application form, Notarized Affidavit, The business plan and capital confirmation documents issued by the bank are officially submitted to the Belize International Financial Services Commission, Enter the official review sequence.
step 4: IFSC in-depth review and multiple rounds of defense
The IFSC authority will allocate an accredited officer to conduct the audit, source of funds, Conduct extremely strict inquiries and background checks on senior executives’ professional qualifications and anti-money laundering risk control models..
step 5: Obtained foreign exchange license (Total time spent 5-7 months)
Respond to all IFSC feedback on behalf of the client and adjust details as required. After passing the review, a Category 6 or Category 7 license will be officially issued.. The entire process takes approximately 5 to 7 months.
6. IFSC continuous compliance review and [extremely stringent statutory reporting red lines]
Mandatory monthly financial reporting: Companies are required to submit to the IFSC on a "monthly basis", Income statement and in-depth reporting on the number and value of all trades executed. and submit standardized IFSCREP1(quarterly) and IFSCREP2(annual publication).
emergencies 5 daily emergency report: If received involves manipulation, Fraud, Customer complaints such as theft of funds, or company in super 2.5 Defendant in $10,000 lawsuit, Top management must urgently report to IFSC and provide response plans within "five working days".
Annual interviews and independent audits: License holders are required to visit the IFSC (physical or remote meeting) at least once a year for questioning. Accounting records must be kept in accordance with IFRS standards, and mandate the provision of external independent audit reports.
Customer protection and transaction restrictions: A monthly financial statement must be provided to the client each month. It is absolutely prohibited for companies to encourage customers to over-trade for the purpose of increasing handling fees. and without the written authorization of the customer, Never execute any transactions on behalf of clients.
7. [Details of Government Fees and High Operating Costs] for Belize IFSC License
| Expense Category | Statutory fees and market cost estimates (USD) |
|---|---|
| High initial license application fee | For foreign exchange dealers or securities companies (Category 7), The application fee is 25,000 Dollar(This is the standard after the new regulations were raised in 2016., (originally $5,000). The amount must be paid directly to IFSC. |
| Annual license renewal government fees | The government fee for annual license renewal is also as high as 25,000 Dollar. also, The company's own annual renewal government registration fee is also required. 1,099 Dollar. |
| Monthly local operation and maintenance costs | To satisfy the Economic Substance Act, Must maintain a local physical office, Local directors and qualified employees. According to specific needs, Basic maintenance costs are generally 3,500 USD/month about. |
8. Hong Kong Huitong's one-stop Belize IFSC foreign exchange license agency service
Corporate establishment and economic substance settlement
Setting up a business company in Belize for you, Addressing the toughest “local director” vs. “office of compliance entity” red lines head on, Ensure full compliance 2019 Review standards under the Economic Substance Law.
Preparation of core financial documents and risk control
Tailor-made for you by senior compliance consultants 5 year business financial forecast plan. Prepare an Anti-Money Laundering (AML) and Compliance Operations Manual that is fully compliant with Caribbean Financial Action Task Force (CFATF) standards.
Local bank account opening and official defense
Assist in opening local bank accounts with Belize-licensed financial institutions, Finish 50 Capital freeze of USD 10,000. Fully authorized to handle months of in-depth review and questioning by IFSC authorized officials on your behalf.
9. Belize IFSC Foreign Exchange Regulation License Practical Questions and Answers (FAQ)
10. Boundaries and application risks of IFSC’s foreign exchange business
The scope of Belize IFSC licensing depends on the application category and actual services. Forex, CFD, securities, Payment or asset management business cannot be summarized by the title “foreign exchange license” alone., Must be compared to the current classification of the regulatory agency.
Applicants should verify the licensed entity, Capital and personnel requirements, Client Funding Arrangement, Reporting and audit obligations, and confirm the marketing of target markets, Cross-border services and local licensing requirements; Promotion of low threshold or quick licensing is not an official commitment.
11. Official supervision and application information
| Official materials | Main purpose | Link |
|---|---|---|
| Applying for a Registration | Check the current registration procedures for securities business in Belize | Belize Financial Services Commission |
12. Relevant regulations, Regulatory information and further reading
| Data category | Related information |
|---|---|
| Professional interpretation | |
| Legislation and regulatory guidance |
