You may have heard a lot about setting up a Belize company -- it's quick, easy, no taxes, no reporting, etc. Don't be fooled!! Though it might be attractive on the surface, there are many perils and critical limitations to having a Belize company. We explore those factors and why most people should NOT open a Belize Company.
Today we're going to explore whether or not you should open a Belize company — the answer is likely NO.
The myth of a Belize company
A lot of people write to us and saying they need to open up a business overseas. They're getting taxed too much and want to diversify their assets somewhere else.
They have heard it is quick and easy, there are no taxes, there is no reporting, etc. It only takes a couple hundred dollars and within a few days you could have a fully incorporated Belize company up and running.
Does your business need banking?
We have done Belize companies ourselves and they're great if you're running a very simple and straightforward business that's completely online, doesn't need any banking, doesn't need to build and maintain a reputation among customers, partners, etc.
If the nature of your business is strictly online and operating a bit more in the background as opposed to client facing, then this might work well for you.
However, as soon as you need to deal with banks — which we’d say is the vast majority of businesses — then a Belize company starts to become a major issue. So that means if you’re running something like a SaaS or an Amazon FBA business, and are taking credit cards or dealing with any kind of transactions directly with end-consumers, Belize isn’t going to work for you.
Why the bad rap for Belize companies?
When you are operating around the world as a Belize company, the reality is that a lot of people have a default association with illegitimate businesses. Because they make it so easy for anyone to come in and incorporate, that inevitably attracts suspect actors and the poor reputation follows.
Very few banks around the world will open a bank account for a Belize company and the banks in Belize are not very good options. You probably wouldn't want to put your money in a Belize bank as they’re notoriously unreliable and can be quite difficult to use.
So what will often happen in the case of a Belize company, you will end up seeing a reverse company structure where the Belize entity owns a company in the U.S. or in Singapore or somewhere else…. Then that child company is the entity that will actually hold the bank account and all of the money.
While that might work for some people, as you can imagine, it becomes an excessively complicated structure that isn’t justifiable for most.
If not Belize — what are some other options?
If it’s zero taxes that you’re after, then you might as well just incorporate your company elsewhere — for instance, a place like the Grand Cayman Islands. They have sufficient due diligence measures in place to ensure only legitimate companies, which means they can maintain solid reputation globally and
This is just one example amongst many -- you have t he Seychelles, Singapore, Georgia, etc.
We'll be doing deep dives on these various markets in the coming weeks and months so stay tuned to the blog and the channel.
Remote Ventures is an open investment platform for buying and selling fractionalized real estate all around the world. It gives everyday investors a simple way to access the global real estate market and build a truly diversified, cash flow generating portfolio.
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