Belize Forex License

Belize is a Central American country that has turned out to be one of the most attractive countries where forex companies seek to obtain a valid and flexible regulatory license. Due to its friendly attitude towards investors, a very strict privacy law, and advantageous geographical position, Belize offers an affordable license for trading forex, which allows one to establish a legitimate and regulated presence in the global forex market.

Holding a Belize forex license means that your company respects the regulatory standards of this country, which could add credibility in the eyes of your clients and partners. If you would like to find out how to get a forex license and how to trade forex either in or from Belize, please read on because our team of knowledgeable lawyers is sharing some basic information regarding associated benefits, regulations, and legal processes that you have to consider before opting for this forex-friendly country.

Advantages of the Belize Forex License

The geographical location of Belize is also favorable for those forex businesses that are looking to concentrate on North and South American markets and beyond. Belize enjoys political stability and a good international reputation in the business community, including security and assurance that the business environment is not going to pose any unexpected threat to operations. With a legal system founded on English common law, forex businesses find familiarity and predictability in the environment. The fact that the official language of Belize is also English further renders conducting forex operations within the country relatively easier. It eradicates any type of language barrier and communicates better with clients and partners from various English-speaking countries.

It is more economical to get a Belize forex license compared with licenses in other jurisdictions. Therefore, the costs of licensing and post-licensing regulation relatively have a competitive edge, hence making it an attractive jurisdiction for start-up and established forex companies. While the license is cheaper, it still enables its holder to provide services in forex trading with clients all over the world, and this can significantly expand the client base and revenue possibility.

You will be glad to know that there are no tight controls in Belize over the exchange of currencies, which might allow forex traders to optimize cross-border transactions and take advantage of opportunities opening in the financial markets globally. The movement of capital inside and outside of the country is pretty much unrestricted, which is desirable for those who need fast access to and trading of different currencies over various regions without friction.

It follows that Belize’s tax system is reasonably uncomplicated, hence easier for any business to grasp and subsequently fulfill the required expectations concerning taxes. Belize has imposed a territorial tax system, which implies the levy of taxes is applied only on the incomes that are generated within Belize’s borders. Sometimes, the national authorities do not charge Capital Gains Tax and Withholding Tax on dividends, interest, or royalties. Also, international services of companies domiciled in Belize are not in the scope of Belize’s VAT. This regime means significant tax savings can be achieved by the forex business in the context of an international trading activity.

While giving favorable conditions, Belize’s regulatory regime gives much emphasis on AML/CFT considerations, which is coherent with international standards and contributes to strengthening the integrity of the financial services sector. Overall, Belize’s regulatory framework encompasses standards ranging from risk management to investor protection, from operational infrastructures to corporate governance and internal controls. This helps ensure that the FOREX businesses in Belize are operating according to internationally recognized best practices and hence are acceptable for business by all types of clients and partners globally.

Advantages

Forex Regulations in Belize

The Belize International Financial Services Commission (IFSC) is a respected regulatory authority that oversees financial activities, including forex trading, in Belize. Its responsibilities include the licensing and supervision of forex companies, the promotion and protection of Belize as an international financial services centre, and the imposition of administrative sanctions and disciplinary penalties on non-compliant forex businesses.

The following legal acts are applicable to Belize forex businesses:

• International Financial Services Commission Act
• Securities and International Financial Services Act (SIFSA)
• Securities Industry Act of 2021
• Domestic Banks and Financial Institutions Act, No. 11 of 2012
• IFSC Guidelines
• The Money Laundering and Terrorism (Prevention) Act of 2008 (MLTPA)
• The Economic Substance Act
• Accounting Records (Maintenance Act) of 2013
• Mutual Administrative Assistance in Tax Matters Act of 2014
• The Income and Business Tax Act
• International Limited Liability Companies (Amendment) Act of 2023
• International Limited Liability Companies (Registration) Regulations of 2012

SIFSA is the popular abbreviation for the Securities and International Financial Services Act; this is one important law through which financial services in Belize are regulated, including forex trading. Under this act, the IFSC was created to be the regulator of Belize’s financial services sector, bringing on board numerous ways through which forex businesses are regulated and licensed to ensure they can maintain international standards. It also sets out, under the Act, the preconditions and the process for granting a license on the structure of corporate government, risk management, and internal controls within forex firms.

The Securities Industry Act, 2021 develops and promotes such fair and efficient capital markets, as well as confidence in the capital markets in or from within Belize, by providing protection to investors from unfair, improper, or fraudulent practices and setting rules for registration, reporting, auditing, and other relevant processes necessary to keep financial activities fair, efficient, and up to the standard. Additionally, it provides the rules concerning advertising and dissemination of information, and such should likewise serve the interest of the public.

Best forex brokers in Belize

Types of Belize Forex Licenses

In Belize, you can choose from 2 main types of forex licenses:

• Trading in Foreign Exchange License
• Market Maker License

A license to trade in foreign exchange allows companies to offer forex trading services to their clients because its holders can act as some kind of intermediary between the clients and the forex market. The service providers offer a very reliable platform on which their clients can trade various currency pairs and other related forex products. This license also permits an enterprise to undertake actual trading on behalf of the clients and give exposure to the worldwide forex markets.

The Market Maker License enables companies to work both as a broker and a market maker. A market maker’s role is more active in the trading process by quoting bid and ask prices to customers, and hence providing a market in various currency pairs. This type of license allows the license holders to supply the forex market with liquidity by offering prices at which they are willing to buy and sell currencies. Market makers may also reap the spreads between bid and asked prices.

Any of these licenses are usually valid for one year, but you also can apply for the validity of up to 3 years. When the license is due to expire, the license holder needs to apply for a renewal. Renewal consists in continued compliance with regulatory standards, updated documentation, and transfer of required renewal fees payable to the IFSC.

Requirements for Belize Forex License Applicants

First of all, a Belize forex license is obtained through registering a company in Belize according to national laws. The legal forms of business come in several types: BC, or Business Company; LLC, standing for Limited Liability Company; and lastly, a Partnership. The type will be determined based on many aspects, including the nature of your forex business, considerations of liability, tax implications, and your goals for the long term. Please note that in order to make a sound decision, it is necessary to consult our lawyers here at Regulated United Europe.

Other key requirements for Belize forex license applicants are as follows:

• Minimum required capital – from 50,600 BZD (approx. 23,000 EUR) to 1 mill. BZD (approx. 460,000 EUR)
• Annual license fee – from 10,000 BZD (approx. 4,600 EUR) to 50,000 BZD (approx. 23,000 EUR).
• State fee – 1,000 BZD, approx. 460 EUR
• Sufficiency of financial resources to carry on a forex trading business
• Implementation of AML/CFT policies and procedures
• The directors, shareholders, and key personnel in the forex business should meet the criteria for fit and proper requirements of integrity, competence, and financial stability.
• A sound operational structure shall be in place, including trading platforms, procedures for risk management, and client support.
• Depending on the type of license, IFSC may require at least some of the applicants to have relevant experience and expertise in the forex trading industry.
• An applicant shall commit to abide by the regulatory and legal requirements provided by the IFSC, which includes reporting compliance, auditing, and prudential requirements.

The following documents should be filed for the granting of a license in Belize for engaging in a forex operation:

• Duly completed and certified application form as prescribed by the IFSC
• Applicant’s director cover letter with the kind of license applied for, the validation period, and whether the license fee is paid upfront or annually, conditioned upon the IFSC granting a license for a fixed period of more than one year.
• Proof of paid application fee
• Certificate of Incorporation
• A Memorandum of Association
• Articles of Association
• A business plan covering aspects of the forex business, target markets, marketing strategies, organizational structure, and operational plans;
• Financial statements, which include balance sheets, income statements, and cash flow statements to provide assurance on the financial position of the company.
• Supporting documentation with verification of financial resources and available capital for the operation as a forex trading company. Copies of passports of the company’s shareholders, directors, and other key personnel.
• Biographical statutory declaration for each key person: Notarized, if resident in Belize; notarized and apostilled, if not resident in Belize.
• Evidence of address of each key person within the last 3 months of the date on which the application is received.
• Documentation of internal AML/CFT policies and procedures, including how the applicant will carry out customer due diligence.
• Documents showing the operational structure of the company, including its trading platform, risk management systems, and IT setup.
• A compliance manual, specifying how the forex business will comply with all regulatory and legal requirements as stipulated by IFSC.
• Samples of marketing material that the business intends to use in the course of promoting its forex trading services.

Belize

Capital	Population	Currency	GDP
Belmopan	441,471	BZD	$9,623

How to Establish a Forex Company in Belize

Although there are several legal business structures from which you can choose, it should be noted that the Belize Business Company-BC is considered one of the most applied legal business structures in Belize by forex licensees in carrying out their businesses locally and more importantly internationally. The time it takes to register a Belize BC depends on factors such as the quality of the application and the complexity of the intended business. It may take anything between one day and a couple of weeks. If you’re on the lookout for an urgent solution, our lawyers will be very happy to help you optimize the process.

Belize’s BC structure provides a very high level of confidentiality and privacy for business owners—an important advantage for those intending to maintain their financial privacy and protection of sensitive information. It is not publicly available data about the shareholders, directors, and officers of the corporation, which means that their identities and positions in the company are protected from potential external inquiries. Also, as opposed to some other jurisdictions that would require more thorough reporting, Belize’s BCs have only a minimal level of reporting obligations that can save them significant time and resources.

The basic requirements of the Belize BC proposing to operate a forex business are:

• At least one shareholder
• At least 2 directors, residents of Belize
• A registered office in Belize where official documents can be served
• A Belize-registered agent who will serve as a liaison between the forex company and the regulatory authorities

How to set up a forex company in Belize:

• Choose a unique business name, which should also be compliant, for your forex company
• Decide on natural or legal persons who will hold the positions of directors and shareholders of your forex company
• Appoint a registered agent in Belize
• Prepare proper legal documentation
• The application form should be completely filled out and submitted along with the necessary documents to the Belize Companies and Corporate Affairs Registry.
• The incorporation shall be done against the payment of the prescribed registration fees.
• A bank account in Belize for your incorporated forex company must be opened.
• An application for a license from IFSC, Belize, is to be made.
• To be registered with the Belize Tax Department for a TIN and pay their taxes.
• Register with the Social Security Board, which will cover your employees under Belize’s social security system.
• Register with the Financial Intelligence Unit, Belize, for AML/CFT reporting.

Documents Required for Setting Up a Forex Company in Belize

• The following documents are commonly needed to incorporate a Belize forex company:
• The applicable application form for the business structure selected
• Articles of Association
• Memorandum of Association
• Company name reservation form
• Proof of Belize registered office address
• Proof of Belize registered agent
• Statement of compliance
• Business plan
• Financial statements
• Passport copies for the company’s shareholders, directors, and other officials
• Proof of residence for the company’s shareholders, directors and other officials
• Documentation that proves directors, shareholders, and officers are fit and proper
• Payment for the incorporation fee

If you need certified translators, notary public, or any other professional services in connection with your case, then our staff can always help you to facilitate the most efficient and cost-effective solutions for you. Please don’t hesitate to contact us directly and we will schedule a personal consultation for you.

FOREX LICENSE IN BELIZE

How to Obtain a Belize Forex License

The processing itself may take about half a year from the very preparation of documents, but in general, it is difficult to predict, as much depends on the type of license applied, whether an application is complete, and what flow of applications is processed by IFSC at the moment.

The most general outline of how a forex license is obtained in Belize looks like this:

• Identify a licensed service provider from IFSC’s providers’ list who has to forward your application to the IFSC.
• Collect and prepare all the required documentation, which is necessary for the application.
• The licensed provider will ensure proper due diligence on the company and its key individuals before it proceeds to forward the application to the IFSC.
• Pay the required application fees.
• The applicant provides a license provider with an application form and supporting documentation, along with a copy of the proposed offering document to be submitted to the IFSC.
• The IFSC will take no longer than 2 working days from receipt of the application to verify whether it is complete and notify the applicant’s registered agent.
• Application package reviewed by the IFSC Due Diligence on the company and key personnel, and against the Requirements for a First Issue License Checklist

Ongoing Requirements for Belize Forex Licensees

Obtaining a license to provide forex services in Belize implies further ongoing commitments that need to be followed by the licensed entity to retain its legal status and act within the regulatory framework. These requirements are in place to ensure the integrity of financial services and protection for both clients and the financial system itself.

Licensees of the Belize Forex shall have an obligation to keep relevant information and documents in such form and for such periods as are reasonably necessary for the conduct of their business and operations, including documentation of compliance with all requirements imposed by the competent authority. They shall have to lodge with or submit to the IFSC any such document or report, or publish or circulate to the public any report lodged with the IFSC. In respect of the publicity of information, a forex firm shall not utilize misleading or deceptive advertising and marketing methods but instead promote truthful messages about the services offered and the related possible risks of forex trading, so as to enable the clients to make an informed decision.

Every forex business shall keep its books and accounting records in Belize either at its registered office or at the office of its registered agent in Belize. They can also be kept at any other place within or outside Belize as the directors or other competent persons may determine, provided that where the accounting records of a company are kept outside Belize, such company shall provide its registered agent in Belize, with a written record of the physical address of the place(s) where the accounting records are kept.

Licensees of Belize forex are supposed to carry out their activities in an ethical manner in respect to their clients, partners, and the financial industry in general. They should be transparent in pricing, giving full and accurate information to all clients, and in so doing, demonstrate their commitment to client protection and integrity. In addition to these, they also have to avoid conflicts of interest, prevent market manipulation and fraudulent behavior, and protect the overall reputation and credibility of the firm.

Also, from within, it is highly relevant that the standards of AML/CFT be followed and the following regulations be followed, to wit:

• File SARs with the Belizean FIU when confronted with transactions or activities suspicious of money laundering or terrorist financing.
• This shall be done by continuously carrying out proper customer due diligence when establishing business relationships or executing transactions with the customers, by verifying the identity of the customer, understanding the nature of the customer’s business, and determining the risk with the customer.
• Record accurately all the transactions and customer information for a specified duration of time.
• Determine PEPs and apply enhanced due diligence on the transactions involving PEPs.
• Train the staff appropriately for AML/CFT purposes so that they may know about possible risks and will be able to efficiently monitor the business transactions, thereby preventing the company from being used for unlawful activities and being fined or prosecuted due to non-compliance.

If you want to start forex trading and obtain a forex license in Belize, our team here at Regulated United Europe will be more than pleased to assist you in incorporating a company and applying for one of the licenses. Having dedicated legal advisors, tax experts, and financial accountants at your fingertips will make obtaining a forex license in Belize an easy, seamless, and transparent process. Contact us today to set up a personal consultation that will lead to long-term success.