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Belize Funds License

Starting Offshore > Belize Funds License

Brief Overview:

Belize is a commonwealth nation located on Central America’s east coast. The country formally referred to as British Honduras is now largely considered as a central American/Caribbean independent nation with strong ties to both the Latin American and Caribbean regions. Belize is the only country in Central America whose official language is English.

Belize is known to have one of the best policies when it comes to mutual funds. The mutual law act 2000 is the county’s regulatory basis for the operation of mutual funds. In addition to this, there are several Regulations on the subject of mutual funds, and a wide range of Guidelines also issued by the Belize Registrar of Mutual Funds, which deals with the more excellent points of practical applications of the Mutual Funds Act.

The Act deals with three main areas, which are the registration of public funds, recognition of professional and private funds, and licensing of fund administrators and fund managers.

Under the Belize Mutual Funds Act, a mutual fund company is defined as a company incorporated, or partnership formed or a unit trust or other similar bodies that have been created or organized under the laws of Belize or of any other jurisdiction which pools funds for the collective investment and issues shares.

The Belize Mutual Funds Act distinguished three types of funds; they are the public funds, private funds, and professional funds.

The public funds are known to attract the highest degrees of regulations.

The Belize International Financial Services Commission must license all administrators and managers of mutual funds within Belize. Several criteria must be met by anyone requiring the Belize Funds license, the most important being that the license applicant must convincingly prove himself as a fit and proper person to be engaged in the proposed fund management business and equipped with adequate knowledge and expertise as well as required facilities necessary for the scope of the business being proposed.

To adhere to the regulation process, applicants must provide full details of the eventual beneficial owners of the application. This may include resumes and references of each beneficial owner to accurately evaluate the “fit and proper” status of the applicants. Complicated ownership will not be accepted. The head of the advisory committee (the minister) decides if they require any other documents to register for the Belize Funds License.

Those interested can also apply for the Belize Forex Brokerage license which is slightly different from the Belize funds license.

Belize is a very reputable jurisdiction, which makes it a top choice for the establishment of a mutual funds company. The country has a competent financial services advisory authority and a Mutual Funds Act that is a comprehensive piece of legislation. Belize is also politically, socially and in fact legally stable which gives it a unique and robust economy favorable to mutual funds establishments.  No restrictions or exchange controls to registered offshore mutual funds.

Exemption of all offshore mutual funds investors from the provisions of the Belize Income and Business Tax Act, stamp duty act and the Exchange Control Act or any other form of taxation in the country.

These and a lot of other factors favor Belize as an excellent choice for the establishment of a mutual funds company.

Application Process:

Documents required to obtain a Belize Funds License :

For the company:

A business plan containing the following details:

  • A description of the objectives of the proposed bank
  • Proposed customer base
  • Opening balance sheet and three-year projections as certified by an auditor
  • A feasibility study
  • The nature and source of capital financing
  • The applicants have to prove their ability to meet statutory requirements for minimum paid up capital and statutory deposits
  • Detailed description of internal systems and controls
  • A copy of the ownership structure including group member as well as affiliated companies

 

For the Applicant:
  • A notarised copy of valid passport
  • Notarized or attested (stamped and/or signed) copy of proof of residential address in English or translated into English
  • Certified bank statement
  • One character reference and two bank references
  • Proof of source of funds
  • Notarized non-criminal records
  • Signed and dated CV
  • Notarized copies of Diplomas