Company Administration
Company Administration
The Administration (directorship and daily operations) of a Belize business entity (formerly known as a Belize IBC) can be carried out in two primary options:
Option 1: Company directed by the owner. As the beneficial owner of the company, you can be appointed as the Company Director for your Belize business entity. The particulars of the company Director will show up in some of the main documents of the company and said particulars must be provided upon its registration.
Option 2: Company directed by an appointed director (Nominee). In this case the directorship of the company is assumed by a professional third-party director which is commonly known as “Nominee Director.” The Nominee service can be provided by the Registered Agent (Berkeley) and the owner of the company may also nominate anyone else to be appointed as the Company Director.
Consideration
If the company owner also acts as a Director, there are two clear advantages:
1. the company maintenance costs are kept to the minimum;
2. the company structure remains simple and straightforward
However, there is a distinct disadvantage which is the owner, who acts as the Director of his own Belize business entity, must indicate this in his annual tax filing in the country where he actually resides. This is because in many high-tax countries a foreign (offshore) company may become liable to register for local taxation if it is “managed and controlled” within that country, regardless of the fact that the company itself is foreign-registered. The place of management and control for tax purposes is usually determined as the place where the Directors reside or in some cases where management takes place.
Directorship
On the most basic level, the appointed third-party Director does not get actively involved into the regular affairs of the Belize business entity – he merely fills the position. This is most accurately described by the term “nominee” director. In this case, the client (the owner of the Belize business entity) actively and personally transacts the daily business of the company. To do so, he may be appointed as “representative” or “agent” of his own company, by means of a special Resolution or a Power of Attorney. By this layout, the client himself would sign all business correspondence, contractual documents, raise invoices and would operate company bank accounts by his own signature, as if he were a director. The involvement of the Nominee Director in such case would remain merely formal, for which a relatively small and fixed annual “administration fee” would be charged.
In certain business situations such layout may be acceptable, regardless of the fact that the active management by the client greatly reduces his degree of confidentiality. However, this may also lead to questions about the management and control of the company being vested not in the Director, but rather in the representative (i.e. the owner), with the following adverse personal tax implications for the latter.
Trustees
Berkeley Corporate Services Ltd. offers Trustee services and the formation of different types of trust that will fit your requirements.