Asset Management Company Belize
Asset Management Company Belize
- Index Bank License-Asset Management Company
- Tax planning via a network of international tax advisers and attorneys
- Why form a company in a foreign country with a tax accountant specialized in international tax law?
- Basic Considerations regarding the Formation of Companies in „Zero-Tax Havens“ i.e. in countries that have not entered into Double Taxation Agreements with other countries
- Offshore Company Formation: Tax haven rankings
- Examples for the legal reduction of corporate taxes
- DTA permanent establishment concept – Our services and fees
- Parent companies and their subsidiaries in the European Union
- Beware of cheap founders!
- Index Bank License
Asset Management Company Belize
We – more specifically, our partner law firms associated with the Low Tax Network – form asset management companies or companies with bank license (deposit banks, which are subject to the supervision and oversight of the respective agency and/or the country’s Central Bank) in:
- Belize (Asset Management Company, Bank)
- Cayman Islands (Asset Management Company, Bank)
- Nevis (Asset Management Company, Bank)
- Panama (Asset Management Company)
- Liechtenstein (Asset Management Company, Bank)
- Switzerland, Germany, Spain, USA (Full-Service Banks as defined by (term), Deposit Banks, Asset Management Companies)
Asset Management Company – Financial Services Company in Belize
An Asset Management Company in Belize may accept, manage, and invest customer funds and distribute profits to the customers. The basis is the formation of a Corporation in Belize (as a rule IBC), which applies for the license to operate an Asset Management Company. Within the scope of the legal considerations the “law of the provider country” applies in relation to the services provided by the asset management and/or financial services company as defined by (term). If – and in which form – an asset management company in Belize is permitted to offer its services to non-residents of Belize is dependent on many factors and is a component of the consulting services we provide.
The formation of an asset management company in Belize can be beneficial and is based on the following factors:
- Our law firm in Belize can also provide a permanent Nominee Director for an Asset Management Company (employed Director as defined by (term)). This is for example not possible in Liechtenstein. In other offshore countries only one Nominee Director can be provided – if this is at all possible– which can quickly lead to the assumption of avoidance misuse when considering asset management companies.
- An exempt Company (the company transacts business exclusively with non-residents of Belize) is not subject to taxation.
- Belize does not maintain disclosure clauses with regard to tax matters
Within the scope of the Asset Management Company licensing procedure comprehensive licensing documents must be submitted: Business plan, profit & loss plan for the first years, terms and conditions, underwriting prospectus, personal qualification of the management / Managing Director (to the extent our law firm in Belize does not provide an employed director). We prepare the required documents in collaboration with our client and submit the license application to the relevant agency. The company (IBC = international Business Company) must have a certain degree of “substance”, a mere registered office is not sufficient. The minimum requirement is a virtual office, with an office phone number, personal call reception during normal office hours, a fax, a serviceable postal address, also for registered mail.
Asset Management Company Fee Schedule
The company formation fees in Belize are based on the provided services. The fee for the licensing of an Asset Management Company is approximately $21,500 US. The provision of a permanent Nominee Director (employed director) costs $500 US per month, with a onetime administration fee of $2,500 US.
Company Formation Belize
Our law firm’s services:
- Formation of the company through a law firm or tax accounting firm in the seat country, commercial registry documents
- Apostille, notarized translations of the commercial registry documents
- Registered office to maintaining a business office
- Nominee Director during the formation phase or permanent Nominee Director (no other offshore provider provides this service), Nominee Shareholder or bearer shares or a Liechtenstein Foundation as shareholder
- Regarding Bearer Shares: The opening of an account at a bank in Belize is possible, without having the shareholder present at the opening of the account (as a rule this is not permitted elsewhere)
- Regarding Exempt Company*: Presenting the “exempt status” to the agency (GOV)
- Opening of a bank account, including VisaCard and Online Banking
- EU Account: opening of a company account at a major Cypriot bank, including Internet banking and credit card. Cyprus has excellent bank secrecy and does not provide company account information to third parties, with the exception of suspicion of money laundering or terrorism. Opening of a bank account is also possible with bearer shares; our client does not have to travel to Cyprus to open a bank account. Contrary to “cheap formation providers” we don’t mean “Help opening a bank account” (generally, this means that no bank account is opened!), rather our Cypriot law firm assumes all the required measures with regard to the opening of a bank account.
- Opening a Swiss investment account for the company, Swiss private bank account
- Tax advice for “both sides” (regarding the client and the country of the permanent establishment), tax advice within the context of the affiliated companies
- In the event of actual permanent establishment – installation/relocation: Tax planning, work and residency permits for employees and/or management, office, warehouses and/or production plants
Individuals: Tax advice within the context of “relocating ones permanent residence”, issuing of a visa, tax situation under consideration of the national laws.
Brief Overview Company Formation Belize – Company Law Level:
- DTA Situation: No, DTA have not been entered into with any country
- EU Freedom of establishment: No
- EU Parent Subsidiary Directive applicable: No
- Exempt Company* – formation possible: Yes
- Tax Rate Exempt Company*: Zero
- Tax Rate One Shore Companies: No taxes, if company creates jobs (tax exempt status for 15 years)
- Bank secrecy: Excellent, anchored in the constitution
- Extradition Treaties for fiscal offences: No, none exists
- Taxes on foreign source income: No
- Political Risks: None
- Commercial Public Registry: The commercial registry contains only the name of the company and the registered agent. Additional information is not available and is not provided
*Exempt Company: A company which only generates revenues outside of the seat country and for this reason is not subject to any taxation.
- Inheritance Tax: Yes
- Entry Conditions: Income of $2,000 US monthly income or $1,000 US pension per month
Basic Considerations regarding the Formation of a Bank
International banking law is an extremely complex legal practice area. “Forming a bank on the fly” is a contradiction in itself. Please consider that many dubious providers offer their services via the Internet, these providers are neither tax accountants specialized in international tax law or attorneys specialized in bank law, nor do they have sufficient knowledge and expertise in the area of national and/or international law. So-called “bank formations” by such providers are seldom worth the paper on which the supposed license is documented. We provide services to clients who have already lost more than 100,000 Euro to such providers, in which cases a bank formation was not realized. When forming a bank – or a financial services company with the approval for providing bank services domestically and internationally – there are numerous laws that must be complied with in the seat country in which the bank is to be formed, as well as compliance with the domestic laws of the “provider country”.
Key issues include among others:
- What objectives are being pursued with the formation of a bank?
- Which services is the bank to offer?
- In which countries are the bank services to be offered and in “which form”?
- Where is your “permanent residence” (location of unrestricted tax liability); Where do the shareholders reside in terms of tax liability?
A Brief Overview of the Terminology
Asset Management Company:
Asset management companies may receive funds from third parties, invest such funds, and distribute profits from such investments as defined by (term). An asset management company is, however, not a bank as defined by the respective provisions (may not offer any bank typical services), and consequently an asset management company is not a deposit bank. Examples of asset management companies: Asset Management Company Liechtenstein, Asset Management Company Panama or Belize.
Banks are defined as deposit banks, which may offer bank typical services (invest and distribute third-party funds, provide loans, lawful currency, etc…). Banks as defined by (term) are, as a rule, subject to the supervision and oversight of the relevant agency and/or the country’s Central Bank. As a rule, the banks must comply with the Basel II Accord and as such must commission an auditing firm.
E-Money Institutes and Investment Bank:
Contrary to this, some countries (for example Germany) know the terms E-Bank and/or Investment Bank. “paypal” for example is an E-Money-Institute. The equity capital required for such financial services companies are, as a rule, lower than that of a full-service bank (equity capital for an investment bank in Germany is approximately 730,000 Euro, for an e-Bank is 1 million Euro).
Financial Services Companies with Bank Services License
These financial services companies may offer bank typical services. Typically such financial services companies may only offer their services to customers outside of the seat country, consequently the term “offshore financial services company with a license for bank services” is utilized. The New Zealand Financial Services Company is an example of this. These institutes are, as a rule, subject to the supervision and/or oversight of the relevant oversight agency or the country’s Central Bank.
The term offshore bank is not defined and for this reason is utilized to describe a number of institutes. It can be defined as: deposit banks as defined by (term), which can only be active outside of the seat country, in other words “offshore”. Such an institute can be subject to the oversight and supervision of the relevant agency and/or Central Bank or not. Deposit banks are often defined as an offshore-bank, which is subject to the supervision and oversight of the respective agency and/or the country’s Central Bank and may offer bank services in the seat country, however the offshore-bank’s seat country is located in typical tax-havens.
General Information on Banking License, Provision of Financial Services, Asset Management Companies
The license prerequisites are very different in individual countries, in particular the required equity capital of the bank and/or the asset management company. The basis – more specially, the formation of a stock corporation according to the law of the seat country, supplemented by the installation of an ordinary place of business in the seat country is recommended. The stock corporation then applies for the license on behalf of the asset management company and/or bank (deposit bank).The New Zealand Financial Services Company can be an excellent alternative. A New Zealand Bank (correct term: New Zealand Financial Services Company with a license for bank services) can offer bank services globally to private individuals and companies via the Internet without restrictions on the number of customers, the amount of deposits, or the number of currencies. However, the New Zealand Financial Services Company with a license for bank services is not subject to the supervision and oversight of the country’s Central Bank. This fact has consequences with regard to the presentation of the services in other countries, consequently loans cannot be attained at the Central Bank and a correspondent bank is always required, i.e. the bank does not have its own SWIFT code etc….
The fee schedule for forming a bank and/or asset management company is based on the seat country and the services provided.
Legal Basics – Terminology: Bank
International banking law is an extremely complex legal practice area. In simplified terms it can be described as follows: Financial service companies in terms of a deposit bank, which is subject to the supervision and oversight of the respective Central Bank and/or other state regulatory authorities and have the corresponding license, to offer the corresponding financial services to third parties, are referred to as a “bank” as defined by (term). They may offer bank services as defined by (term) to domestic natural and legal entities and, as a rule, also to “individuals” outside of the seat country of the bank (restrictions/limitations can however exist within the national law of the “other countries”). The respective license requirements are stipulated by the financial services laws/bank laws of the respective countries. In most countries adequate funds i.e. equity is required (for example Switzerland requires 5 million Swiss Franks, the US requires 5 million US dollars and 10 million US dollars collateral deposited with the FED, Germany requires approximately 5 million Euro, Cayman Island requires approximately 350,000 Euro, Belize requires 1.3 million US dollars etc…). In addition, most bank laws regulate the requirements placed on bank management – the so-called “professional qualifications” (professional education/studies in the field of banking, management experience in banking, perfect police certificate for good conduct, credit report, etc…), the existence of a qualified place of business, General Terms and Conditions, and auditing and accounting provisions.
In addition, some countries offer the possibility of forming a financial services company with a license for bank services, without being subject to the supervision and oversight of the respective Central Bank (for example the New Zealand Financial Services Company with a license for bank services). These institutes, as a rule, may only offer bank services outside of the seat country and are therefore often referred to as “offshore banks”.
Contrary to this some countries know the term E-Bank and/or Investment Bank. “paypal” for example is an E-Money-Institute. The required equity capital of such financial services institutes are, as a rule, lower than that of a full-service bank (an investment bank in Germany requires approximately 730,000 Euro, e-Bank requires 1 million Euro).
What differentiates a bank formation domestically as opposed to internationally?
A “Full Service Bank” is, as a rule, understood to be a bank, which is formed and licensed according to the financial services laws of the respective country, bank services as defined by (term) permit the offering of services to residents, and as a rule, are subject to the supervision and oversight of a government organ and/or the country’s Central Bank. If – and under which conditions – such a bank is then permitted to offer its services in other countries, is regulated by the bank laws of the “provider countries”.
An “Offshore Bank” is, as a rule, understood to be a bank, which may only offer its bank services to “non-residents” (offshore). This form of a financial services company with a license for bank services (for example New Zealand Financial Services Company with a license for bank services), is not subject to the supervision and/or oversight of the country’s Central Bank. However, some of these offshore banks (including New Zealand) are indeed subject to the statutory provisions regarding the prevention of money laundering among other acts:
- Bills of Exchange Act 1908
- Checks Act 1960
- Companies Act 1993
- Consumer Guarantees Act 1993
- Credit Contracts and Consumer Finance Act 2003
- Electronic Transactions Act 2002
- Fair Trading Act 1986
- Financial Transactions Reporting Act 1996
- Investment Advisers (Disclosure) Act 1996
- Personal Property Securities Act 1999
- Proceeds of Crime Act 1991
- Property Law Act 1952
- Reserve Bank of New Zealand Act 1989
- Securities Act 1978
- Unclaimed Money Act 1969