OVERVIEW FOUNDATION LAWS OF BELIZE
The International Foundations Act 2010 (as Amended) (‘The Act’) regulates Foundations in Belize. Essentially a foundation is a self governing separate legal entity, managed by foundation council in conjunction with the founder or protector, according to the foundation charter and the law.
The importance of a foundation is such that once assets are transferred to a foundation, the assets become the property of the foundations. The person who establishes the foundation has no legal or beneficial claim or title to the assets. Effectively the assets being foundation assets, does not form part of the founder’s estate. For this reason, the foundation is seen as an essential and useful structure for asset protection, tax planning and succession planning.
HOW IS A FOUNDATION CREATED?
A foundation is established in Seychelles in keeping with a written charter signed by one or more founders and submitted for registration to the Registrar of Foundations (Financial Services Authority) and upon the issuance of the registration certificate - by the Registrar.
Types of foundations:
Irrevocable, but the foundation charter may be amended by the council or dissolved if absolutely necessary; charitable and non-charitable.
The main features of a Belize Foundation
The International Foundation Act 2010 (as Amended) provides for the following:
• The Council is responsible for the administration, management and distribution of the foundation assets in accordance with the charter and the Act. All parties focus on the attainment of the objects and goals specified in the charter and authorized by the law.
• The council shall consist of one or more persons, either natural or legal, known as councilors. At least one member of the foundation shall at all times be a resident of Belize or Registered Agent.
• The initial assets of a foundation shall amount to at least USD 10 000 or an equivalent sum in any foreign currency.
Documentation
The Act requires that a foundation charter shall contain the following details:
• Foundation’s name;
• The founder’s name and address;
• Name and address of the registered agent and registered office address;
• Council members’ names and addresses;
• Initial endowment (value of assets to be placed into the foundation);
• Distributions and applications of property endowment;
• Beneficiaries’ names, addresses, class and information about additional beneficiaries ;
• Information on the residual beneficiary upon the dissolution of the foundation;
• The foundation’s designation, as well as procedures, policies and guidelines ;
• Any other lawful matter in keeping with the purpose of the foundation.
Protector
The Protector may be appointed, but it is not required by the law, and his/her powers are specified in the charter. No foundation member can be a protector.
Accounts
Accounting can be conducted as deemed necessary by the foundation council, yet in strict accordance with the Accounting Records (Maintenance) Act, 2013.
The place of keeping of accounting records is at the discretion of the council. However, Registered Agent of the foundation should be aware of where accounting records are stored.
Tax Exemptions
Foundations’ earnings and revenues are 100% tax free in Belize.
Restrictions
A foundation may not deliver any financial services (unless licensed to do so).
Confidentiality
Disclosure of information relating to a foundation’s establishment, administration, management, maintenance and assets, is forbidden. Violation of this point entails stiff fines and penalties.