Belize Private Fund License

The Belize Mutual Funds Act 2000 sets forth the regulatory environment for operation of mutual funds in Belize. A Belize mutual fund can be a company incorporated, a partnership formed, a unit trust organised or other similar body formed or organised under the laws of Belize or that of any other country or jurisdiction. Registered mutual funds enjoy the flexibility of structure and an access to a great number of investment options and strategies.

Key Features (Legal Requirements & Scope of License)

There are also several additional Regulations on the subject of mutual funds regulation, and a range of Policy Guidelines issued by the Belize Registrar of Mutual Funds (part of the International Financial Services Commission).

The Belize Mutual Funds Act defines a Private Fund as a fund that has less than fifty investors and the constitutional documents of which prohibit the offering of its shares to the general public.

At application, a proposed private fund will be expected to demonstrate the “private basis” of offering its shares to prospective investors and to explain what criteria will enable any particular investors to qualify as “private”. It remains with the Registrar of Mutual Funds to either accept or reject any such explanation.

Application Fee for the Registration of a Private Fund is EUR 750 while the License Fee is EUR 750.

Legal Requirements

Requirements

Description

General

  • Corporate¬† vehicle permitted

International Business Company (IBC), Limited Partnership (LP) or Unit Trust

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

None

  • Minimum investors

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes

  • Fund administrator

Yes

  • Auditors

Yes

  • Legal Advisers

Yes

 

Tax Treatment

  • Minimum or zero tax on capital gains, incomes, profits and dividends that accrue to the Fund.
  • Minimum or zero tax on fees, commissions and profits earned.

 

Duration to Set Up

Around 3 months

 

Distinctive Benefits of Licence

  • Investment funds established in Belize enjoy minimal or no-tax status on income and profits, capital gains and dividends.
  • The commissions, fees and profits of fund managers, administrators and advisors are also either liable to minimal taxation or exempted from tax.
  • There are no exchange controls or restrictions on financial transfers that apply to Belize mutual funds.

 

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers