Belize is a tiny state in Central America sandwiched between Mexico to the north and Guatemala to the southwest while facing the Caribbean Sea to the east. The population of this small country with tons of pristine beaches is merely 400,000 people who can speak English, Spanish, and Creole.
Diversified wildlife such as jaguars, howler monkeys, etc. is abundant. The major component of Belize’s economy is tourism, while agriculture and oil production also play a key role. Belize was a British colony till 1981, now it is an independent country and a member of the Commonwealth.
Types of companies in Belize
Despite the size, Belize has a reasonably sized economy that relies heavily on luxury recreational tourism. Oil exports of the country also play a supporting role. The country’s GDP in 2020 was estimated to be $1.6 billion, of which 40% came from tourism alone. Though Covid-19 shook the industry really badly and the country suffered drastically, however, now that situation has normalized foreign and local investors are returning as well as tourists.
There are several types of business structures in Belize, including:
| S# | Type of company | Local name | Min. paid-up capital required |
| 1. | Sole proprietorship | Sole Trading | No paid-up capital required |
| 2. | Partnership | Partnership | No paid-up capital required |
| 3. | Limited Liability Company (LLC) | Private Limited Company (Pvt. Ltd.) | $1 |
| 4. | Public Limited Company | Corporation | $1,000 |
| 5 | Joint Venture | Cooperative | No paid-up capital required |
| 6. | Trust | Trust | No paid-up capital required |
It is important to note that paid-up capital is not the only financial requirement to setup a company in Belize. Other pre-setup costs can include registration fees, license fees, taxes, etc.
Sole Proprietorship
As the name suggests, a sole trader business is owned and managed by a single person. Usually, this format is preferred by skilled people retailers, freelancers, or people who have very little to no investment. The owner in this case is fully responsible for all the debts and liabilities arising from the business in a personal capacity with no legal protection.
Partnership
Two or more like-minded people entering into a business arrangement to achieve a unified commercial interest is called a partnership. It requires two or more natural persons into an agreement. A partnership can be general (all partners are equally responsible for debts in a personal capacity) or limited (liable only to the extent of their investment).
Limited Liability Company (LLC)
An LLC or Pvt. Ltd. company is recognized as a legal person, hence assuming all the liabilities, thus freeing the owners from any personal responsibilities in regard to debts, losses, etc.
Corporation
A corporation is akin to a public limited company elsewhere. A corporation is a format of choice for large investors and capital-intensive businesses such as oil drilling, technology manufacturing, etc. A corporation can raise capital in a short span of time through a public offering in the shape of company shares.
Cooperative
A cooperative is a joint venture between two or more companies for a specific purpose or time period. It is a kind of partnership between organizations that are subject to strict regulations but have a more complex organizational structure than a partnership.
Trusts
A trust is a legal arrangement where one person (the trustee) manages property for the benefit of another person (the beneficiary). The trustee usually does not enjoy profits out of this arrangement rather a hefty salary for his/her services is allocated.
Cost of registering and incorporating a company in Belize
The type of company registered, the nature of the business, the legal services required, and other such factors determine the actual cost of the registration process.
Some of the major costs that the process involves are:
Company Name Reservation
$5.00 – This fee is payable to the Belize Companies and Corporate Affairs Registry (CCAR) to reserve a company name.
Articles of Incorporation
$50.00 – This fee is payable to the CCAR for filing the Articles of Incorporation, which are the legal documents that establish the company.
Business License
$50.00 – This fee is payable to the Belize City Council for obtaining a business license.
Registered Agent and Registered Office
$150 – $350 per year – Every company in Belize is required to have a registered agent and registered office, which can be provided by a local service provider.
Professional Fees
The cost of hiring a lawyer or other professional to assist with the incorporation process can vary but typically range from $500 to $1,500
In total, the cost of registering and incorporating a company in Belize can range from around $800 to $1,750 depending on the services required and professional fees charged.
Cost of doing business in Belize
The cost of a running business is different from the cost of registration and incorporation. It is a post-set-up list of expenditures that every company, big or small, is likely to encounter.
Here is a list of expenditures that are most likely to add up to the operational expenses (OPEX) list.
Taxes
Belize has a Value Added Tax (VAT) of 12.5% on most goods and services, as well as income tax rates that range from 0% to 25%, depending on the level of income. Businesses may also be subject to other taxes, such as payroll tax and property tax.
Labor Costs
The minimum wage in Belize is $1.50 per hour, but skilled workers may command higher salaries. Employers are also required to contribute to the Social Security Board, which provides benefits such as pensions and healthcare.
Rent and Utilities
The cost of renting office or retail space can vary depending on the location and size of the space. Utilities such as electricity, water, and internet may also add to the cost.
Licenses and Permits
Businesses may be required to obtain various licenses and permits, such as business licenses, trade licenses, and health permits. The cost of these licenses and permits depend on the type, nature, and size of a business
Transportation and Shipping
Belize is a small country with limited infrastructure, so businesses may incur additional costs for transportation and shipping of goods.
