Accounting requirements for Belize LLC and IBC

Disclaimer: This article is for informational purposes only about the accounting requirements for Belize LLC and IBC and does not constitute legal, tax, or accounting advice. Always consult a qualified professional before taking action. 

1. Why Belize Still Shines as a Modern Offshore Hub

Belize still stands out as one of the most stable places in Central America to set up international business. It’s an English-speaking country that follows common law, which makes things easier, and it’s well-connected to both Caribbean and Central American markets.

That gives Belize some real, unique advantages for investors and entrepreneurs like you.

Here’s the thing: Belize has done a great job updating itself. It’s now a modern business hub that plays by international rules, while still giving you solid benefits.
Even though financial rules have gotten tighter all over the world, Belize stepped up. It changed its laws to meet global standards, and it did it without losing the speed and flexibility that made it a good choice to begin with.

The biggest upgrade? Belize moved away from the old IBC system and brought in a new, unified law called the Belize Companies Act, 2022.

That change removed the old wall between domestic and international companies.

Now, there’s one clear company structure for everyone, fully compliant, internationally respected, and still built to support smart business.

2. 2025 Playbook: Belize’s Companies Act Meets Global Standards

The Belize Companies Act, 2022: A Full-Scale Modern Overhaul

Picture Belize’s corporate world as a stage, and at its center stands the Belize Companies Act, 2022, one of the most sweeping updates to Belize’s corporate laws you’ll see.
This law merged the old International Business Companies Act with the domestic Companies Act to give you one clear, unified framework.

Here’s the plot twist every entrepreneur cares about and the key features you need to know:

• Single Corporate Structure: Now, all companies follow the same rules. This change removes the old split between local and international firms, so everyone’s playing on the same field.
• Modern Digital Infrastructure: The Act created the Online Business Registry System (OBRS), letting you form and manage your company entirely online. No more paper chase, just clicks. But don’t forget: every company still needs a registered agent in Belize to handle filings and official communication.
• Enhanced Compliance Requirements: It adds clear rules on who truly owns each company, genuine substance tests for business operations, and built-in international cooperation. Think of it as a trust-but-verify protocol built right into the law.

Dismantling of the IBC Ring Fence: All Businesses, One Set of Rules

The new Act swept away the special deals once given to International Business Companies.
Under the old system, IBCs got full tax exemption and had fewer compliance duties in return for not doing business inside Belize.

This ring-fencing arrangement, while a draw for investors, clashed with the push for global transparency.

Now, the unified system enforces territorial taxation the same way for everyone, so all companies–no matter what they do–follow the same legal rules and compliance steps.

International Pressures and Compliance

Let’s be clear: Belize’s big regulatory makeover was driven by pressure from groups like the OECD, FATF, and the European Union. 

In the early 2010s, Belize hit its reputation hard when it landed on watch lists for weak anti-money laundering and poor transparency rules.

But Belize did not just sit there, it made real strides. In 2015, it left the Caribbean Financial Action Task Force follow-up process faster than any similar country.

Then in January 2025, Belize earned the second-highest global rating under the FATF’s 40 recommendations, getting “Compliant” or “Largely Compliant” on every measure.

3. The Modern Belize Company: Features and Advantages

Successor to the IBC: The Unified Company Structure

Under the Belize Companies Act, 2022, companies can be incorporated as :

• Company limited by shares (most common for commercial purposes).
• Company limited by guarantee (with or without shares).
• Unlimited company (with or without shares).
• Special Purpose Company (SPC) for specific business objectives.
• Limited Liability Company (LLC): a separate LLC regime exists under Belize law and is governed by its own legislation (International/limited liability companies framework).
• Segregated Portfolio Company for investment fund structures.

Key Features of the Modern Belize Company

Legal Personality and Limited Liability

Belize companies have their own legal identity, separate from their owners. Limited liability means that owners’ personal assets are safe from company debts, and they only risk the money they invested.

Flexibility in Corporate Structure

The new rules give companies lots of flexibility in corporate governance:

• Minimum Requirements: you only need one director and one shareholder (they can be the same person).
• Residency: neither directors nor shareholders have to live in Belize.
• Meetings: companies don’t have to hold physical meetings in Belize.
• Share Capital: there is no minimum capital, and shares can be issued with or without a set value. 

Asset Protection and Privacy

Even though Belize has added transparency rules, it still offers real privacy protections:

• Nominee Directors and Shareholders: you can use nominees, but you must tell the authorities who really owns the company. 
• Confidential Registers: company registers aren’t open to the public, though they must be kept and shown to the right officials.
• Trust Structures: companies can create trusts to protect their assets.

Permitted Activities

Modern Belize companies can do almost any legal business, including:

• International Trading: importing, exporting, and cross-border trade.
• Investment Holding: owning shares, bonds, and other investments.
• Professional Services: consulting, management, and advisory work.
• Digital Business: E-commerce, software development, and online services.
• Real Estate: investing in property abroad (domestic property has some limits).

However, companies must get special licenses before they can do banking, insurance, fund management, or securities trading.

4. Critical Compliance I: Mastering Economic Substance Requirements

The Economic Substance Act: Foundation of Modern Compliance

In 2019, Belize passed the Economic Substance Act. It makes sure that companies claiming tax advantages in Belize actually do real work there. 

The law covers every company set up under Belize rules. If a company does certain “relevant activities”, it must prove it has real operations in Belize that match its income and work.

Identifying “Relevant Activities”

The Act lists nine types of business that need real substance in Belize:

1. Banking business: offering regulated banking services.
2. Insurance business: providing insurance or reinsurance.
3. Fund management business: managing investment funds. 
4. Financing and leasing business: giving loans or leasing assets. 
5. Headquarters business: running senior management or risk control for group companies. 
6. Distribution and service center business: buying and selling goods or services for related firms. 
7. Shipping business: operating cargo ships (not fishing boats or yachts). 
8. Holding company business: owning shares in companies that do any of these activities. 
9. All regulated entities: any business that needs a license from regulators.

Meeting the Substance Test in 2025

If your Belize company does one of the “relevant activities”, you’ve got to prove it lives and breathes in Belize. Here’s how: 

Do Your Core Work Locally: Core Income Generating Activities (CIGA)

Your main money-making tasks must happen in Belize. That means:

• Spending fits the work: you show you’re spending enough on things like rent, utilities and supplies for your business. 
• Skilled staff on the ground: you hire full-time employees with the right know-how. No ghost staff.
• Real office space: you have a proper office—no P.O. boxes here.

The specific CIGA requirements vary by activity type. For example:

• Banking: you handle loans, manage risks, and file reports from your Belize office. 
• Fund management: you make investment calls, run risk checks, and submit reports right there in Belize. 
• Headquarters: you hold your big strategy sessions, manage budgets, and coordinate teams in Belize.
  

Control Must be in Belize

It’s not enough to hire people; decisions must actually happen on Belize soil: 

• Board meetings in Belize: hold enough meetings in Belize. Get your quorum. Make notes.
• Minute-taking: record every big decision. Store those minutes in Belize. 
• Local directors: your directors must know their stuff and be available in Belize. 

Outsourcing? Keep it Local

You can farm out some tasks, but play by these rules:

• No Outsourcing Core Tasks Abroad: your key money-making work must stay in Belize.
• Use licensed agents: if you outsource, it’s only to Belize-licensed managers. 
• Stay in charge: you still oversee the work. 
• No Double-Counting: you can’t claim the same outsourced resources for two companies. 

In short: Do your real work in Belize. Make your big calls in Belize. And if you outsource, keep it local and licensed. That’s how you nail the 2025 Substance Test.

Exemptions and “Pure Equity Holding Companies”

Pure Equity Holding Companies (PEHCs) get lighter rules because they only hold shares and earn dividends or capital gains. They must: 

• Follow all Belize laws and rules. 
• Have enough staff and office spaces in Belize to manage their shareholdings.
• If they actively manage investments, keep enough resources for those tasks. 

This rule exists because passive investment needs less on-the-ground work than running a full business.

5. Critical Compliance II: Accounting & Financial Records

New Record-Keeping Law

Since Augusts 28, 2023, every Belize company must keep its books and papers at its own office in Belize or at its registered agent’s Belize office. Before this, you could stash records anywhere in the world as long as your agent knew where they were. Effective August 28, 2023, all companies must maintain their accounting records at their registered office in Belize or, if they don’t have a registered office, at their registered agent’s office in Belize.

This represents a significant shift from the previous system where companies could maintain records anywhere in the world, provided they notified their registered agent of the location. 

In simple, you can consider accounting requirements for Belize LLC and IBC to be the same, regardless of the type of entity you have incorporated.

What Records Must Be Kept

Accounting requirements for Belize LLC and IBC under the Act include a range of financial documentation. Imagine a big folder with all these inside:

• Financial statements (audited or unaudited): these must be approved, signed and dated by a director.
• General and subsidiary ledgers recording all transactions.
• Sales slips, contracts, and invoices supporting business activities.
• List of your assets and debts.
• Records of all cash in and out.
• Every sale and purchase.
• Any document tied to a money move.

Five-Year Rule

Hold onto those records for five years after each transaction or project. No hiding them! If you slip up, you could be kicked off the register or fined up to BZ$100,000.

The Role of the Registered Agent

Think of your agent as your record-keeper coach:

• They store your records at their Belize office.
• They must hand them to regulators on demand.
• If you don’t send them your papers, they warn you–and can drop you after five days.
• They keep an eye on you to make sure you follow the rules.

Stay organized, keep your records close, and you’ll sail through compliance with no drama.

6. Critical Compliance III: Beneficial Ownership Transparency

Goodbye Anonymity: Hello Global Standards

Belize no longer lets companies hide in the shadows. It’s shifted from secrecy to full international standards for beneficial ownership. The goal? Honest businesses and proper transparency can exist together.

Belize’s Secure Beneficial Ownership Register

The register lives inside the Online Business Registry System (OBRS). It’s a locked-down platform that tracks who really owns each company.

Key features:

• One central database tied to company registration
• Access only for registered agents and government officials
• Real-time updates when ownership changes
• Cybersecurity protections that keep data safe
• Tax ID & tax residence (UBOs): each UBO must provide their Tax Identification Number and country of tax residence by filing BTS101. Even if a UBO has no Belize income, BTS101 registration is mandatory and must be kept current. This data supports cross-border reporting (CRS/CARF) and may be shared with foreign authorities under international exchange rules.

Company Obligations: UBO Identification and Reporting

Every company must identify its Ultimate Beneficial Owners (UBOs) and keep the info up to date through OBRS.

You’ll need to report:

• Full name and old names (unless unused for 10+ years).
• Birthdate, nationality, and home address.
• Government ID (passport).
• Tax ID and country of tax residence: the tax identification number and the country where the person pays taxes.
• What share or control they hold.
• When they became or stopped being a beneficial owner.
• Their job.

Who Count as a UBO?

A UBO is anyone who:

• Owns 10% or more of shares or voting rights.
• Can control company decisions.
• Has transactions done on their behalf.
• Has ultimate control over the company, even through complex ownership layers.

Who Can See the Info ?

UBO details stay private, but not invisible:

• Registered agents can see info for companies they handle.
• Government regulators and law enforcement have access.
• The public cannot view the data.
• Belize can share it with foreign authorities when the law allows.

Bottom line is that Belize now tracks who’s really behind every company–quietly, securely, and in line with global rules.

7. Belize’s Territorial Tax System: 2025 Made Simple

What “Territorial” Really Means

Belize only taxes income made inside Belize. Money earned abroad? That’s tax-free. This makes Belize a major win for global businesses while still following international tax rules.

Foreign-sourced income that’s tax-free includes:

• Dividends from foreign companies.
• Interest from overseas investments.
• Capital gains on foreign assets.
• Royalties from foreign IP.
• Trading profits made outside Belize.

How Companies Are Taxed

For income sourced within Belize, companies are subject to the following tax structure:

Income Tax Rates:

• General corporate rate: 25% on chargeable income.
• Petroleum operations: 40% on petroleum-related income.
• Designated Processing Areas (DPA): reduced rates of 1.75% or 3% depending on income level.

Business Tax:

• Standard rate: 1.75% on gross receipts.
• Professional services: 6% on receipts.
• Licensable financial services to non-residents: 3%.
• Rental income: 3%.

Key Exemptions:

Any business making all its money abroad doesn’t pay income or business tax on that foreign income.

Filing Requirements: Annual Compliance

Every company must file annual tax returns, even if they made zero Belize income. This keeps you compliant with global reporting standards.

However, there’s one more non-negotiable step: every company must obtain an EIN (tax identification number) via form BTS100, regardless of whether it has Belize-source income. The same rule applies to Ultimate Beneficial Owners: even if a BO has no Belize income, they must obtain a tax number using form BTS101 and keep it current. This all ties into global reporting rules and OBRS reporting. 

To illustrate, if you own a Belize company, you must file BTS101 and get a Belize tax ID. If the same person also owns an entity in Seychelles (or another jurisdiction), that jurisdiction may require you to disclose all valid tax IDs you hold. So your Belize tax number can end up on Seychelles filings. This a small administrative step that could feel intrusive to many clients.

Deadlines and duties:

• File tax returns by March 31st.
• File business tax returns if you operate in Belize.
• Attach financial statements (audited only if requested).
• Submit economic substance reports (if required).
• Keep UBO info current through OBRS.

Penalties if you don’t:

• Late filing: 3% per month (min BZ$10).
• Unpaid taxes: 1.5% interest per month.
• Non-filing: Fines and possible company strike-off.

Bottom line: Earn in Belize? Pay, but know the rates. Earn abroad? Tax-free. However, even if you earn everything abroad, you still must register for tax IDs (BTS100 for companies; BTS101 for BOs) and file the required returns.  File your returns on time, every time, because Belize takes compliance seriously.

8. Belize and Digital Assets: A Practical Approach

Belize’s Current Stance on Crypto

As of 2025, Belize doesn’t yet have a full set of crypto laws. But it’s taking a careful approach, which is encouraging innovation while managing risk. 

Current restrictions include: 

• No licenses until Dec 31, 2025 for virtual asset businesses.
• You can’t run a crypto business without a license under the Financial Services Commission Act, 2023.
• Activities like negotiation, brokerage, exchange, transfer, and management of virtual assets need a license.

What’s Coming Next

Belize is building a complete crypto regulation system. The Financial Services Commission (FSC) is:

• Creating rules that allow innovation but reduce risk.
• Following international standards, particularly IOSCO’s 18 recommendations for crypto regulation.
• Applying the principle of “same activity, same risk, same rules”.
• Covering areas like market manipulation, conflicts of interest, custody of assets, and operational risks.

Accounting Rules for Digital Assets

If your company holds crypto, you must keep clean books:

• Classify your assets correctly on your balance sheet.
• Use consistent valuation methods.
• Record every purchase, sale, and transfer.
• Handle tax the same way as other assets under Belize’s territorial tax system.

International Cooperation and Reporting

Belize has joined the Crypto-Asset Reporting Framework (CARF), an OECD-created international standard for automatic exchange of information between tax authorities. This means tax authorities will share information about crypto holders to prevent tax evasion and keep markets transparent.

9. Dissolution and Winding-Up: A Clear Exit Plan

Voluntary Liquidation Basics

Want to close shop? Belize’s 2022 Companies Act has you covered. To start a voluntary liquidation, you need:

• Solvency: you can pay all debts as they come due.
• Up-to-date: all fees paid and filings made.
• Board OK: directors pass a resolution and pick a licensed liquidator..
• Licensed liquidator: the liquidator must be licensed in Belize (and, where required, approved by the Financial Services Commission) so they can act locally, access records, and deal with regulators.
• Liquidation plan: must include reasons, timeline, and how assets will be shared. Your books and all accounting requirements for Belize LLC and IBC must be completed before starting the process.

The 8-step Liquidation Process

1. Board Vote: directors approve liquidation within six weeks.
2. Appoint Liquidator: a pro with FSC sign-off takes charge.
3. Public Notice: you advertise the liquidation in the Gazette.
4. Sell Assets: the liquidator turns company assets into cash.
5. Pay Creditors: debts get paid in the right order.
6. Share Out: any leftover cash goes to shareholders.
7. Final Accounts: the liquidator shows a full money report.
8. Dissolution Certificate: the Registrar issues the final “all done” paper.

Time & Money

• Timeline: usually 2–3 months if everything’s clean. Complex cases take longer.
• Costs: liquidator fees (based on asset value), filing fees, legal bills, and unpaid debts.

Striking Off vs. Dissolution

If you ignore annual fees, Belize will strike you off on January 1st.

• Strike Off: non-payment of fees.
• Restore (5 years): pay what you owe plus penalties.
• Permanent Dissolution: after five years off the register, you’re gone for good.

Bringing a Company Back

Missed the liquidation window? You can still return within five years:

• Admin Restore: for those struck off over fees.
• Court Restore: for voluntary dissolutions or tricky cases.
• You’ll Need: all back fees, penalties, and up-to-date filings.
• Timeframe: roughly three months if no one objects. 

10. Avoid These 2025 Compliance Traps

Skipping Economic Substance Forms

Mistake: You forget to file or wrongly claim you don’t need to.

Fix it:

• Check every year what your business really does.
• Get expert help for tangled structures.
• File your forms within nine months after your year ends.
• Keep proof of your Belize operations and decisions.

Messy Accounting Records

Mistake: You stash your books somewhere else, not in Belize, as required by the 2023 amendments. Remember, the accounting requirements for Belize LLC and IBC are the same, so the process is the same regardless of your company designation.

Fix it:

• Talk often with your registered agent about where to keep records.
• Log every cent in and out.
• Hold onto records for five years.
• Answer any regulator requests fast.

Botched Beneficial Ownership Reports

Mistake: You list the wrong owners or forget to update changes.

Fix it:

• Regular UBO reviews to identify ownership changes, at least once a year.
• Collect every required personal detail.
• Update the OBRS system promptly.
• Hire pros for complicated ownership webs.

Missing Fees and Filings

Mistake: You let annual fees slip or skip returns.

Fix it:

• Set calendar alerts for every deadline.
• Automate payments with your agent.
• Run regular checks to confirm you’ve done it all.
• Grab a Good Standing Certificate to prove you’re up to date. The certificate can be obtained only if the company is in Good Standing. This means all requirements, such as the accounting requirements for Belize LLC and IBC and the renewal fees, must be completed before in order to obtain the certificate. 

Poor Communication with Registered Agent

Mistake: You vanish, then miss deadlines and alerts.

Fix it:

• Keep in touch year-round.
• Sign a clear service agreement with roles and response times.
• Tell them right away about any business or owner changes.
• Hold a yearly compliance check-in.

11. Conclusion: Why Belize Wins in a in 2025

Belize has shed its “secretive offshore” image and become a modern, above-board business hub. It proves you can have real perks and full transparency at the same time.

What makes Belize stand out:

• Clear rules: one unified Companies Act gives you certainty.
• Tax perks: you only pay tax on Belize-sourced income, everything else is tax-free.
• Flexibility: low red tape plus real substance rules keep you agile and compliant.
• Global trust: high compliance ratings and solid ties with international regulators.
• Smart tech: online systems cut costs and speed up processes.

Belize isn’t rule-free; it’s rule-smart. You get true tax efficiency and solid legal backing, while meeting global transparency standards.

Bear in mind: the very rules that make Belize reliable (mandatory BTS100 and BTS101 registrations) also mean some personal tax information may be exchanged with other jurisdictions under international reporting regimes.

For entrepreneurs and businesses seeking an international corporate structure, Belize offers a compelling combination of:

• Rock-solid common-law certainty.
• Freedom to run your business without needless hurdles.
• Tax savings under the territorial system.
• Credibility thanks to proactive compliance.

Belize has become a vibrant, transparent hub where entrepreneurs thrive thanks to a unified Companies Act that cuts through red tape.

Its territorial tax system lets you keep foreign earnings while only taxing Belize income. But remember, the accounting requirements for Belize LLC and IBC require you to file full set of books, supporting documents and transactions history included.

Modern online platforms make filings fast and painless, freeing you to focus on growth.

Lean yet robust regulations earn global regulators’ trust and safeguard your interests.

This smart mix of simplicity and substance keeps your business agile and primed for success.