When you expand overseas, you may decide to establish a subsidiary in Belize. This structure can offer some excellent advantages, but the subsidiary setup process requires time and money to complete. At Globalization Partners, we help you sidestep the process with subsidiary outsourcing services.
How to Set Up a Belize Subsidiary
Before you establish a subsidiary, you should create a company structure. This plan can include the type of company you want to establish and where you’d like to be located. Choose a location for conducting business before starting the incorporation process. From there, you can register your company name with the Companies and Corporate Affairs Registry.
After registering your name, you can apply for incorporation at the Companies and Corporate Affairs Registry. You need your memorandum and articles of association to complete the process.
Once you receive your certificate of incorporation, it’s time to obtain a trade license. This license is required to operate a company anywhere in the country, and you can apply for it with the City Council. You have to pay an annual fee to maintain this license, and it usually amounts to 25 percent of the rental costs for your company building.
You also need to register with the Tax Service and Social Security Board to pay taxes and make contributions, as well as register for General Sales Tax (GST). GST is a tax on consumer spending, and it’s applied at importation and when goods or services are exchanged.
Subsidiary Laws in Belize
To establish a subsidiary, you need to obtain a work permit. The country does not allow investment activity unless you have the proper clearances. Make sure to obtain a work permit from the Department of Immigration and Nationality when incorporating your company.
The most notable subsidiary law is the required memorandum and articles of association. This document provides a framework for how you’ll run your company. It should include how you appoint directors, handle finances, and report tax information.
What Do You Need?
Two essential resources you need for establishing a subsidiary are time and money. While the country makes it relatively simple to apply for incorporation, your establishment process includes more than just application processing time. You need time to create a company framework, draft your articles of association, and build or find a property for conducting business.
You also have to pay application fees for incorporation. Consider the costs of flying into the country, working with a contractor for your building, and potentially meeting with a lawyer to discuss your articles of association. These collective steps can increase your costs.
Incorporating in a foreign country requires valuable resources but can lead to a beneficial result. When you have an official company in the country, this entity is separate from your parent company. This allows your subsidiary to create its own identity and integrate into the local professional culture.
This arrangement is also ideal for separated liability. If a legal concern arises with your subsidiary, it doesn’t affect your parent company. This lowers your liability costs and ensures your parent company stays intact.
When you work with Globalization Partners, we hire your employees through our entity, allowing you to reap the benefits of a subsidiary without taking the time to create one. With your employees under our company, we’re liable for any legal mistakes. With our subsidiary outsourcing services in Belize, you mitigate risk and can start your international company much faster than you could on your own.
Contact Globalization Partners for Subsidiary Outsourcing Help
When you’re ready to expand, you can get started right away by choosing Globalization Partners. We streamline your expansion with subsidiary outsourcing services. Get in touch today to learn more.