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Belize Forex License – Procedure and Requirements Cyprus Lawyers

Michalaki, Pitsillidou Law Firm > English Articles  > Belize Forex License – Procedure and Requirements Cyprus Lawyers

Belize Forex License – Procedure and Requirements Cyprus Lawyers

Regulatory Body in Belize

The regulatory body for International Financial Business is The International Financial Services Commission in Belize (IFSC). An International Business Company (IBC), having its registered office in Belize and provided it holds a respective license, can carry out a range of financial services, including trading in foreign exchange, in securities and financial instruments as well as brokerage, advisory and consultancy services.

Types of Licenses

The International Financial Services Commission (Licensing) Regulations 2007 provide for the Director-General of the Commission to approve licenses to enable a legal entity to provide, carry on, transact, or hold itself out as providing, carrying on, or transacting any of the below services in or from within Belize.

Taxation & Exchange Controls

The Company is not subject to any local taxes or exchange control restrictions. IFSC Licensee has total exemption from all local taxes in Belize.

Facts for Belize Forex Companies

Need of a local Belize company. The Memorandum of Association of the company should be specifically drafted to operate as a Forex Broker and provide such services.

An application would need to be prepared and submitted to the IFSC, accompanied by various documents, certificates and manuals (operations manual etc.).

The applicant Company is obliged to deposit a minimum amount of US$ 100,000 to a local bank in Belize, and remain therein as paid up share capital.

A resident Director is mandatory.

No interview will be required and therefore traveling to Belize is not necessary.

Basic Requirements

IFSC sets out some requirements, which the applicant Company must be able to meet such as:

(a) Disclosure Requirements

On a monthly basis, the Company will send to the IFSC information about

(i) its capital,

(ii) an income statement and,

(iii) number, volume and value of all trades executed.

(b) Directors and Shareholder’s Requirements

It is mandatory for the Board of Directors to have one (1) Resident Director.

The shareholders of the applicant Company are obliged to ensure its proper capitalization. The capital has to be fully paid-up and deposited in a bank account opened in Belize remaining there unimpaired for as long as the respective License is effective. The minimum paid up capital requirements can be found in Section 3 above.

The Director(s) /Shareholder(s) of the applicant Company should have proper knowledge, qualifications and experience in the business that the company is planning to carry on.

(c) Local Presence & Structure

There is no requirement for the applicant Company to have a local operational office and/or hire personnel in Belize.

There are no requirements on the organizational structure of the Company.

(d) Supporting Documentation for Application

The Application should be accompanied by certain information, including:

Business Plan, projected financial forecasts for the first five years, Customer Acceptance and Money Laundering policies, prepared in accordance with the relevant regulations.

Bank confirmation document that the statutory capital has been paid.

Payment of the relevant government application and license fees as stated in Section 3 of this document.

(e) Other Requirements

The are no investor compensation scheme requirements

There are no requirements for audit; however, the Registered Agent must have knowledge and be informed of where the accounting records are being held at all times.

The segregation of client’s funds from the Company’s funds is a mandatory requirement.

Estimated Time Frame

The registration of the Belize IBC can be finalized in one business day. The IFSC normally reviews applications for license within 21 days from the application submission date, provided that all the documents are submitted in order. The licensing process takes approximately 2 to 3 weeks for conditional approval if all documents are provided in order.  Obtaining the Forex license in Belize is a relatively quick process, and not too complicated, however a legal representative is required.

Our team of lawyers and consultants can assist clients on the whole set up, on preparing & drafting of all necessary documents and manuals, which will complement the application, on the licensing process and with any on-going compliance requirements.  We can also provide opening of bank account services in Belize and provide local director services.   If you are interested in applying for a Belize Forex License, contact us and we will be happy to assist.

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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