Forex License in Belize
The International Financial Services Commission in Belize (IFSC) is the regulatory body for International Financial Business. An International Business Company (IBC), having its registered office in Belize and provided it holds a respective licence, can carry out a range of financial services, including trading in foreign exchange, in securities and financial instruments as well as brokerage, advisory and consultancy services.
2. Types of Licence
The International Financial Services Commission (Licensing) Regulations 2007 provide for the Director-General of the Commission to approve licence to enable a legal entity to provide, carry on, transact, or hold itself out as providing, carrying on, or transacting any of the below services in or from within Belize.
3. Categories of Licence
||Minimum paid up Share Capital||Application fees||Annual IFSC fees|
|1||Formation or management of international business companies or other offshore companies||$5,000||$10,000||$500||$1,000||$2,500||$2,500|
|2||Trust formation and management of offshore trusts and provision of trustee services||$10,000||$15,000||$500||$1,000||$2,500||$2,500|
|3||International asset protection and management||$25,000||$25,000||$500||$1,000||$2,500||$5,000|
|4||Money transmission services||$50,000||$75,000||$500||$1,000||$2,500||$5,000|
|5||Payment processing services||$50,000||$75,000||$500||$1,000||$2,500||$5,000|
|6||Trading in foreign exchange||$100,000||$500,000||$500||$1,000||$5,000||$25,000|
|7||Trading in financial commodity-based derivative instruments||$100,000||$500,000||$500||$1,000||$5,000||$25,000|
|9||Money lending and pawning||$50,000||$75,000||$500||$1,000||$2,500||$5,000|
|11||Safe custody services||$25,000||$50,000||$500||$1,000||$2,500||$5,000|
|13||Brokerage, consultancy or advisory services in any of the above services||$25,000||$50,000||$500||$1,000||$2,500||$5,000|
4. Taxation, Exchange Controls
The Company is not subject to any local taxes or exchange control restrictions. IFSC Licensee has total exemption from all local taxes in Belize.
5. Basic Requirements
IFSC sets out certain requirements, which the applicant Company must meet such as:
(a) Disclosure Requirements
- On a monthly basis, the Company will send to the IFSC information about (i) its capital, (ii) an income statement and (iii) number, volume and value of all trades executed.
- Submission of standardize reports IFSCREP1 (quarterly) and IFSCREP2 (annually).
- External Audit is required.
(b) Directors and Shareholder’s Requirements
- It is mandatory for the Board of Directors to have one (1) Resident Director.
- The shareholders of the applicant Company are obliged to ensure its proper capitalization. The capital has to be fully paid-up and deposited in a bank account opened in Belize remaining there unimpaired for as long as the respective Licence is effective. The minimum paid up capital requirements can be found in Section 3 above.
- The Director(s)/Shareholder(s) of the applicant Company should have proper knowledge, qualifications and experience in the business that the company is planning to carry on.
(c) Local Presence & Structure
- There is no requirement for the applicant company to have a local operational office and/or hire personnel in Belize.
- There are no requirements on the organizational structure of the Company.
(d) Supporting Documentation for Application
The Application should be accompanied by certain information, including:
- Business Plan, projected financial forecasts for the first five years, Customer Acceptance and Money Laundering policies, prepared in accordance with the relevant regulations.
- Bank confirmation document that the statutory capital has been paid.
- Payment of the relevant government application and license fees as stated in Section 3 of this document.
(e) Other Requirements
- There are no investor compensation scheme requirements.
- There are no requirements for audit; however, the Registered Agent must have knowledge and be informed of where the accounting records are being held at all times.
- The segregation of client’s funds from the Company’s funds is a mandatory requirement.
6. Estimated Time Frame
The incorporation of the Belize IBC can be finalized in 1 business day. The IFSC normally reviews license applications within one month from the application submission date, provided that all the documents are submitted in order. The licensing process takes approximately 6 weeks for conditional approval if all documents provided are in order.