CSB - A Professional Services Firm

Offshore Financial Services:

Belize is fast becoming the jurisdiction of choice for not only high net worth individuals interested in asset protection and integrated estate planning, but also for a new generation of entrepreneurs who are acutely aware of the many benefits to be derived from conducting business in a stable, tax-effective environment.

A glance at Belize’s international financial services community is a view almost as cluttered as a glance at Belize’s midnight sky on a clear Caribbean night.  Selecting an offshore service provider is a daunting task for most investors:  “So many stars, which one will prove to be lucky for me?”  However CSB, can allay many of the fears and misgivings associated with “going offshore” and conducting international  business in an unfamiliar jurisdiction.

Through our subsidiary, CSB Corporate Services Limited, we deliver a variety of services including:

• Incorporation of IBC’s,

• Offshore Trusts & Trustee Services,

• Offshore Bank Account Application,

• Ship Registration,

• Intellectual Property Registration,

• International Insurance License Application,

• Investment Incentives,

• Offshore Bank License Applications.

As an independent correspondent firm to Deloitte Touche Tohmatsu, we offer our clients the security of a trusted name and the assurance that their affairs are being handled according to the highest professional and ethical standards.

International Business Companies:

Based on the modern and sophisticated International Business Companies Act 1990, Belize offers what is thought of as a useful lower-cost alternative to the traditionally more popular British Virgin Islands (BVI) Company.  The country also has an International Financial Services Commission Code of conduct which mandates offshore financial practitioners to observe high-standards of confidentiality in handling clients’ personal information.

Benefits of Belize IBCs:

• Exemption from taxes on all income,

• Exemption from taxes on all dividends, interests, rent, royalties, compensations and other amounts paid out,

• Exemption from capital gains taxes on shares, debt obligations or other securities of an IBC held by non-residents,

• No exchange control restrictions,

• Shareholders and Directors meetings may be held in any country and may be attended by proxy,

• No citizenship or residency requirements for directors, officers or shareholders,

• Only one Shareholder /Subscriber required,

• Only one Director required and this may be a corporation or trust,

• Shares may be held by corporations or trusts,

• Non-Disclosure Of Beneficial Owners,

• Register of Shareholders is available for inspection only by shareholders or by order of the Belize Courts,

• Bearer Shares Permitted,

• Shares may be issued without par value; no minimum capital required,

• No filing of annual accounting records required.

Popular uses of Belize IBCs:

• Offshore bank account:  Many people desire the heightened financial freedom associated with having an offshore bank account, but are reluctant to hold the account in their own names.  For these people, the incorporation of an offshore company in whose name the account is opened and operated is an attractive means of preserving their privacy.

• Protection of profits:  Belize offshore companies can be effective tax-planning tools for the businessman as they can be used to transfer profits from high tax jurisdictions to a zero tax jurisdiction.  A very topical and prevalent instance of this is "transfer pricing” which involves the strategic placement of an offshore company as an intermediary in a business transaction between parties from two high tax jurisdictions.  Such an arrangement is completely legal if properly structured and executed.

• Ship Registration:  Many of the world’s most popular marine registries (including the International Marine Registry of Belize) permit offshore companies to be registered as a ship owner.  This allows for tax savings on profits earned from chartering and other income-generating activities.

• Investments:  For persons in high-tax jurisdictions, acquiring property, whether real or personal, in the name of an offshore as opposed to a domestic entity can provide significant long-term savings in Income Tax, Capital Gains Tax and Inheritance Tax.

• Intellectual Property Licensing:  Individuals or corporations in high-tax jurisdictions may realize significant tax advantages by selling their ownership of copyrights, patents, trade marks, licenses or franchises to an offshore company.  This company then, contracts with and receives all income from licensees and franchisees wishing to utilize the intellectual material.  The income therefore accumulates in a tax-free environment.

Our IBC Services:

We can incorporate a Belize International Business Company within 2-3 days of receiving all required information.  We also provide, upon request, the following ancillary services: 

• Nominee Shareholder,

• Registered Office,

• Nominee Director,

• Registered Agent,

• Mail Handling,

• Bank Account Opening,

• Legal Support,

• Accounting Support.

Setting up an IBC:

Setting up an IBC is a simple process but one that should recognize the unique offshore needs and objective of each client.  With this in mind, we refrain from offering “IBC Package Deals” as we do not believe that the client should be forced to pay for services he/she does not in fact need.  To obtain a price-quote for establishment of a Belize International Business Company which is tailored to your unique criteria, please contact us.

Paralegal Services: (some restrictions may apply) 

• Corporate,

• Property Law and Conveyance,

• Intellectual Property,

• Trusts and Estate,

• Contracts and Commercial Law,

• Registration of Non-Government Organizations,

• Legal Opinions.

Corporate, Property Law and Conveyance:

CSB Corporate Service Limited offers the following: 

• The incorporation of local companies, and their management and administration,

• Registered agent and registered office service,

• Corporate directors, secretaries and nominee shareholder,

• Preparation of annual returns,

• Obtaining Exchange Control approval (where necessary) where the proposed shareholder is not a Belizean or from a Commonwealth country,

• Registration of Business Names,

• Property Law and Conveyance,

• Registered land transfers,

• Title Searches,

• Title Opinion,

• Preparation of conveyance documents.

Intellectual Property:
 
We can arrange international protection of intellectual property in accordance with local laws that reflect the provisions of international property conventions.  The main categories of intellectual property rights that are protected are:

• Trademarks,

• Copyrights and related rights (i.e. the rights of performers, producers of sound recordings and broadcasting organizations),

• Geographical indications,

• Industrial designs,

• Patents, including the protection of new plant varieties,

• The lay-out designs of integrated circuits,

• Undisclosed information.

Trusts (Local or Domestic) and Estate:

We offer the services of our associated trust company, Compass Trust Corporation that is qualified to act as Trustee of a settlement, either solely or jointly.  Some of the benefits of a Trust are: 

• Exemption from local taxation,

• Asset protection,

• Family protection,

• Anonymity and Flexibility,

• Contracts & Commercial Law,

• Lease Agreements,

• Promissory Notes,

• Partnership Agreements.

Immigration Services:

CSB can assist you with all your immigration needs in Belize, including permanent residency application, nationality application, passport applications/renewals and assisting in the acquisition of work permits.  Our office is also experienced in assisting clients in the acquisition of Qualified Retired Person Status.  Some benefits of Belize’s Qualified Retired Person Program include:

• Exemption from all taxes on income and receipts derived from outside of Belize,

• Exemption from all import duties and taxes on personal effects upon first importation into Belize,

• Exemption from all import duties and taxes every five years on personal motor vehicle,

• Spouse and children under the age of eighteen included in program,

• Permission to conduct business within Belize if business activities are carried on mainly outside of the country and are not conducted with Belizeans.

Registration of Non-Government Organizations:

Due to recent legislation Non-Government Organizations are now required to be registered under the Non-Governmental Organizations Act.  The first step in the process is the formation of a Company limited by guarantee under the Companies Act.

Legal Opinions:

We are equipped to offer written opinions on most areas of the law.

Offshore Trust Services:

A trust is an equitable obligation, binding a person (who is called a trustee) to deal with property over which he has control (which is called the trust property), for the benefit of persons (who are called the beneficiaries), of whom he may himself be one, and any one of whom may enforce the obligation...  The control of the trustee, may, under the terms of a trust, be subject to fiduciary or personal powers vested in another person, who may sometimes be expressly designated a ‘protector’.”

Underhill and Hayton, Law of Trusts and Trustees, 15th edition.
The Belize Trust Act 1992 repeals the Trustee Act 1923, and is generally regarded as a combination of the best features of the trust legislation of other offshore jurisdictions such as Guernsey, Cayman Islands and Bermuda.  In fact, it is often said that the Belize Trust Act represents the high water-mark of offshore trust legislation the Western Hemisphere, or as some may argue, in the world.  This potent legislation is combined with a user-friendly regulatory framework establishing Belize as a highly attractive trust jurisdiction.  CSB offers trust and trustee services through our associated trust company, Compass Trust Corporation.

Benefits of Belize Offshore Trusts:

• Where the Settlor and Beneficiaries are non-resident and the trust property does not include any land in Belize, the trust is exempt from income tax, succession tax and stamp duty,

• All trusts other than unit trusts may be created by oral declaration or by instruments in writing,

• Settlor can, in the trust instrument, choose the governing law of the trust and may provide for several aspects of the trust to be governed by  different laws,

• No exchange control restrictions,

• Where the proper law of the governing law of a Belize Trust is changed to the law of Belize, any previous law cannot operate to vitiate the trust,

• Trusts may be created for a maximum of 120 years and income may be accumulated for a similar period,

• A Belizean Court cannot vary or set aside a trust or recognize the validity of a claim against trust property pursuant to the law of another country in respect of marriage, divorce, succession, or claims of creditors,

• Only one trustee is required.  Simple procedures are given for the appointment and removal of trustees. Corporate trustees may be appointed,

• Registration of the Trust is optional,

• Charitable and non-charitable purpose trusts may be created,

• Trustees are personally liable for loss, depreciation in value of trust assets or loss of profits consequent on a breach of trust.  However, in the case of a corporate trustee the directors are not personally liable,

• Persons who receive property or income with knowledge of breach of trust are constituted constructive trustees thereof.

Popular uses of Belize Trusts:

• Asset Protection:  Belize court cannot entertain any claim against the trust property emanating from the order of a foreign court regarding marriage, divorce, succession or creditors claims.  It is a fact that no Belize Trust has ever been compromised, and there is even a decision of the Supreme Court of Belize on this point.  The Belize Trust has successfully been used  to shield assets despite foreign laws relating to fraudulent transfers, bankruptcies or reciprocal enforcement of judgments.

• Estate Planning:  By utilizing an offshore trust structure the settlor is able to pass along  assets to heirs in an environment that is free of inheritance taxes, or forced heirship laws.  In addition, if one is concerned that a child may squander the inheritance,  controls may be placed on the beneficiaries’ access to the trust assets by implementing a spendthrift or protective trust.

• Tax Planning:  With proper input from onshore and offshore tax professionals, it is possible to arrange the clients affairs so as to legally  reduce his/her tax burden by transferring assets to the offshore trust.

Our Trust Services:

• Legal advice on trust formation,

• Preparation of trust deed,

• Trustee services,

• “Protector” service,

• Accounting support,

• Bank account opening.

Setting up a Belize Trust:

Establishing an offshore trust in Belize is not a complicated process, however settling one’s assets into a trust is a step that should be well-planned.  Careful instructions are taken and every attempt is made to apprise the client of the various repercussions of disposing of his assets in this manner.  A standard Trust Deed establishing a typical offshore discretionary trust is prepared and amended according to the client’s instructions.

To obtain a price-quote for establishment of a Belize Offshore Trust which is tailored to your unique criteria, please e-mail us.

Ship Registration:

The International Merchant Marine Registry of Belize called IMMARBE, is established and governed by the provisions of the Registration of Merchant Ships Act 1989 (the Act), the Registration of Merchant Ships (Amendment) Act # 5 of 1996 and Statutory Instruments #147 and #148 of 1991 and 54 and 123 of 1992.

There are no requirements concerning local ownership or participation in ownership, in order to apply for registration of a vessel in Belize.  The Registry is open to any type, class, or size of vessel used for navigation that is engaged in any lawful trade, service or international maritime activity.  However, vessels 25 years old or more are subject to any of the following conditions at the discretion of the Administration:

• To submit a valid class certificate to the satisfaction of IMMARBE's Head Office, undertaking to maintain said class during the vessel's registration in Belize, or,

• To pass a special safety inspection to the satisfaction of IMMARBE.

All vessels to which the ISM Code and the GMDSS regulations are applicable must submit proof of compliance to these regulations (DOC/SMC and Cargo Ship Safety Certificate or Record of Equipment) in order to be accepted for enrollment or for renewal of documents.  In the case of new enrollments the existing and valid proof of compliance from the former registry is accepted on temporary basis but the interested party will be given a reasonable period of time to obtain the corresponding certificate issued by any of the Recognized Organizations authorized by IMMARBE.

Regular Registration:

Regular registration of vessel can be divided into two status: provisional and permanent.

Provisional status:  The registration of a vessel under provisional basis is effected for six months and may be requested from any IMMARBE's Designated Offices worldwide.

Permanent status:  Full term registration is granted for five years and can be processed immediately if all necessary documents and requirements are readily at hand.  Otherwise, it can be effected during or at the end of the provisional status once the documents are filed at IMMARBE and provided that the vessel is tax clear with the Administration.  Where documents are in a language other than English an official translation shall accompany.

For the purpose of permanent registration the following requirements must be accomplished:

• Builder's certificate (if it is a newly built vessel),

• Bill of Sale with Acceptance of sale and Protocol of Delivery,

• Judicial sale Instrument or Resolution.

Other forms of Registration:

In addition to the standard procedures for regular registration of vessels status, IMMARBE has special procedures for different types of registration and for a limited period of time, which are used for specific purposes:

• Registration of yachts and non-commercial crafts,

• Vessels under construction,

• Special registration,

• Dual registration,

• Charter out,

• Charter in.
  

Important considerations regarding registering in Belize:

• Every vessel registered in IMMARBE shall at all times keep a SHIPPING AGENT appointed by the ship owners.  Only attorneys and accountants with Belizean practicing certificates, Belizean licensed banks and financial institutions, as well as persons designated by the Attorney General can act as agents.

• Upon application by the same owner or his agent to register more than one vessel at the same time or within a specified period not exceeding one hundred and twenty days, an INCENTIVE RATE REDUCTION OF UP TO 75% of the registration fee and/or first year's annual service tax may be approved by the Registrar on the recommendations of the IMMARBE'S Head Office.

Seafarers Documents:

There are no training facilities for seafarers in Belize and IMMARBE has no examination program for the issuance of certificates of competence for which reason only endorsement certificates are granted to seafarers working on Belize flag vessels.

The procedure for issuance of seafarers' documents by IMMARBE is presently based on equivalence, requiring evidence that the applicant is in possession of an appropriate, recognized and valid certificate from any other country.  The endorsement certificate is to be produced for the same category and limitations of the supporting license submitted and no upgrade can be obtained.  Also seamen identification books are issued to ratings on voluntary basis.

Intellectual Property Registration:

The most common intellectual property matters we handle include applications for patent, trademark and copyright registration.  These services are available to clients worldwide, who are seeking protection in  Belize.  Other intellectual property matters, such as contracts, license and sales agreements are also available.

Trademark Services:

Typically, a trademark is a logo, graphic or short phrase / slogan or unique packaging used to identify a product or company.  The Trade Marks Act, 2000, repeals the United Kingdom Trade Marks Act (formerly incorporated into Belizean Laws) and the Merchandise Marks Act.  The new law is intended to bring Belize into conformity with certain provisions of the Paris Convention for the Protection of Industrial Property 1883 as revised and amended.

A Trade Mark, as defined by the Act, is any sign capable of being represented graphically and which is capable of distinguishing goods or services of one undertaking from those of other undertakings.  It may, in particular, consist of words (including personal names) designs, letters, numerals or the shape of goods or their packaging.  A Trade Mark shall be registered for a period of ten (10) years from date of registration and renewal is for a further ten (10) years.  The Proprietor of a registered Trade Mark has exclusive rights in the Trade Mark, which are infringed by the use of the Trade Mark in Belize without his consent (subject to the provisions of the Act).  The Act expressly defines a registered Trade Mark as personal property which carries with it all of the possible transactions normally attendant upon personal/movable property, including enforcement of such rights by infringement proceedings.

Priority for registration purposes is afforded on a first come first serve basis.  However, a person who has duly filed an application for protection of a Trade Mark in a country which is party to the Paris Convention will have a right to priority of registration if the application for registration is made under the Belize Act not later than six months after the filing of the first application.  Our firm regularly handles trademark applications, trademark licenses and trademark contracts.

Patent Services:

A patent is a legal mechanism for protecting an idea, invention, software, method or design.  Patents are either novel creations or modifications to existing ideas.  The Patents Act, 2000 repeals the Patents and Design Act of Belize and the United Kingdom Patents Act of 1949 and 1999 in so far as these latter Acts have effect as part of the Law of Belize.  Patents are granted for new inventions, or anything that involves an inventive step; and inventions that have industrial application.

Requirements:

• A formal request containing the petition for granting of a patent,

• The name or pertinent information of the applicant, inventor and agent,

• Name of the invention,

• Also required are a description of the invention; one or more claims to define the matter for which protection is sought; one or more drawings where required, and an abstract.

Our firm assists with the patent searching, and application processes.  We also draft patent licenses and patent related contracts.  A license allows a person or company to use a patent.  The license typically requires the user of the patent to pay the patent holder a royalty for the use.  We regularly assist with patent licensing and sale agreements.

Copyright Services:

A copyright is a legal protection afforded to an author of a creative work.  Although copyright protection is automatically afforded to an author upon completion of the work, many additional rights are only available if the work is registered.  The Copyright Act, 2000 established better protection of individual property rights of literary, dramatic, musical, artistic and other creative people.  The Act is modeled on the UK Copyright, Designs & Patents Act and is probably the most modern, and comprehensive copyright legislation in the Commonwealth Caribbean.  Our firm handles copyright applications, licensing and assignment contracts.

International Insurance Regulation:

Legislation:

International Insurance Act Cap.269 & International Insurance Regulations S.I. No.64 of 2000.

Regulatory Authority:

Supervisor of International Insurance; Minister responsible for Offshore Financial Services.

Main Focus of Legislation:

Regulation of “International Insurance Business”:  The carrying on or the conducting, whether from within or outside Belize, of any insurance business where:

• The insured;

• The person to whom the policy moneys are payable;

• The owner of the policy;

or any one or more of such persons,

 

• Is not domiciled, ordinarily resident, or incorporated in Belize;

• Is a company licensed to carry on offshore banking business under the Offshore Banking Act.

Classes of International Insurance Business:

1. Long Term Business;


2. General Business;


3. Reinsurance Business;


4. Captive Insurance Business;


5. Principle Insurance Representative;


6. Insurance Manager.

Definition of Captive Insurance Business:

The Act defines “captive insurance business” as “insurance business where the insured is a parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer is authorized by the Supervisor to provide insurance”.

Note:  A registered insurer authorized to carry on only captive insurance business may underwrite a maximum of 30% of unrelated  insurance business.

Restriction on carrying on International Insurance Business:

No person may carry on, transact, hold himself out as carrying on or transacting any international insurance business in or from within Belize unless that person holds a valid Certificate of Registration.

Entities** that may apply for a Certificate of Registration: 

1. A Company {includes a local ‘250’ company, a Belize International Business Company , and a foreign company);


2. A Mutual Society;


3. A Syndicate;


4. A Pool.

**whose constitution documents either prohibit or do not provide for the issuance of Bearer Shares.

Tax Exemptions:

1. No Stamp Duty on contracts of insurance;


2. No exchange control restrictions;


3. No income tax, or any other direct or indirect tax/impost (in respect of any international insurance business written in or from within Belize) on:


1. transactions, contracts, securities;


2. profits and gains;


3. income received;


4. premiums earned;


4. No income tax or any other direct or indirect tax/impost on payments away from company:


1. dividends or earnings attributable to any shares or securities;


2. money paid to an insured;


3. premiums paid to another registered insurer.

Note:  Exemptions are evidenced by a certificate issued by the Minister.

Other Exemptions:

An insurer can apply to the Supervisor for:

• Permission to maintain its principal office at another location outside Belize;

• Permission to keep its business records at a location other than its registered office in Belize.

CSB can assist applicants in obtaining certification/registration to operate as:

• An International Insurer.

• An International Principal Insurance Representative.

• An International Insurance Manager.

Offshore Bank License:

The Central Bank of Belize governs financial institutions within Belize and the relevant legislation regarding offshore banks is the Offshore Bank Act 1996.  The administration’s goal is to attract serious businessmen who seek a reputable banking jurisdiction - clients interested in 'brass plate banks' are discouraged.  A Belize offshore bank is required to have reputable Directors, an actual office and real management within the Belize jurisdiction.

The main characteristics of Belize offshore banks and the procedure for obtaining a Belize Offshore Bank License is set out below.  The entire process can take 6 months - 1 year and applicants should note that a successful outcome is not guaranteed.

About Belize Offshore Banks:

Taxation:
Offshore Banks pay no taxes in Belize.

Classes of Banks:
A Class "A" bank can conduct any type of banking operation without restriction.  A Class "B" bank cannot solicit business from the general public.  However, it can act as a treasury or bank for an associated group of individuals or companies.

Capitalization Requirements:
Class "A":  The required minimum balance for a Class "A" offshore bank is US$500,000.  This can be in the form of CD's, T-Bonds or cash on deposit in a recognized bank.

Class "B":  The required minimum capital for a Class "B" offshore bank is US$200,000.

What makes Belize offshore banks attractive and affordable is the fact that the capital does not have to be deposited with the Central Bank of Belize or any other bank within Belize.  The capital may be maintained outside the country.  However, the capital must be fully paid up before the license is granted.  Auditor's proof is required that the capital has indeed been paid-up.

Directors:
One director must be Belizean - these are usually non-executive directors.  Other directors can be from any country.  At least one must have prior banking experience.  References, CVs and Financial Statements are required on all individuals and companies who are founding the bank or are connected with the application.

Shareholders:
A minimum of one shareholder is required and registered shares may be issued.  Bearer shares are not allowed.  No details of the shareholders appear on the public file but a register of shareholders must be kept at the registered office of the company in Belize.

Business Plan:
A Business Plan with details as to marketing and business projections is a must.  A Risk Management Strategy and a three-year projected balance sheet are also required before the application for license is processed.

Annual Reporting Requirements:
A standard annual report must be submitted to the Central Bank.  Monthly returns are also required.

Registration Time:
Incorporation of the initial offshore company can be achieved within 72 hours.  According to the Central Bank, applications to secure a banking license are approved within 90 days of submission of all properly completed documents.  Of course the emphasis here is on proper completed documents, and it is rare that the Central Bank is satisfied with the documents it receives.

Local Requirements:
The bank MUST maintain a registered office address within Belize.  This can be a small office staffed by 3-5 individuals but the main operations can be conducted in branches in any part of the world.

Application Fees:
The Central Bank’s initial Application Fee is US$2,500 and is non-refundable.  Upon grant of the License a fee of $25,000 is payable to the Government.

Application Form:
There is no application form publicly available.  Interested applicants (or their representatives) need to appear for a pre-filing interview, at which the Central Bank determines whether an application form will be issued.

Our Services:

• Review of Documents and, Legal Advice;

• Scheduling Appointment with Central Bank;

• Preparation of Business Plan;

• Local Director Service;

• Accounting Support;

• Annual Filing