Valsen Fiduciaries Funds

Belize Professional Fund

The Belize Mutual Funds Act 2000 (Revised 2011) sets forth the regulatory environment for operation of mutual funds in Belize. There are also several additional Regulations on the subject of mutual funds regulation, and a range of Policy Guidelines issued by the Belize Registrar of Mutual Funds (being part of the International Financial Services Commission) and dealing with the finer points of the practical application of the Mutual Funds Act.

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About Belize Professional Fund

A Professional Fund shares are offered only to professional investors with initial investment of not less than USD 100,000 or its equivalent in any other currency. A professional investor is any person who qualifies under one of the two alternative criteria:

  • A professional investor is one whose ordinary business involves the acquisition or disposal of property of the same kind as the property, or a substantial part of the property of the fund; or
  • A professional investor is also one who has declared his net worth to exceed one million US dollars and has consented in writing to be treated as a professional investor.

The Belize Mutual Funds Act requires professional funds to be registered, through a prescribed procedure provided by the Act called recognition. This procedure is much simpler than the one prescribed for the public funds. The recognition of a professional fund in Belize requires completion of the relevant application, provision of the proofs or documents that supposedly qualify the fund as professional, provision of the details of the fund itself, as well as the details of its managers, administrators, custodians and other professionals involved and their place(s) of business.

Belize Professional Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Mutual Funds Act 2000 (Revised 2011)

  1. Supervising Authority

International Financial Service Commission

  1. Corporate vehicle permitted

Company;

Partnership; or

Unit Trust;

  1. Share capital or equivalent

 
    • Minimum subscription

USD 100,000
    • Minimum investors

None

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

    • Custodian

      • Custodian required

Yes

      • Local custodian required

No

      • Eligible custodian

Custodian must be a bank licensee or a Belize trust company.

    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Must not ordinarily be a person who is a resident or domiciled in Belize; or

 

Must be fund manager of the fund licensed under the laws of a recognised country or jurisdiction; or

 

Has received written permission from the Minister to carry on business as manager of the fund in or from within Belize.

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Must not ordinarily be a person who is a resident or domiciled in Belize; or

 

Must be fund administrator of the fund licensed under the laws of a recognised country or jurisdiction; or

 

Has received written permission from the Minister to carry on business as administrator of the fund in or from within Belize.

    • External auditor

 
      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

Must be a person entitled to practice as a public accountant and to perform audits under the laws of Belize or that of a recognized country or jurisdiction

  1. Asset Requirements

    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees

    • License application fee

USD 350

    • Annual license fee

USD 350

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
Quarterly obligations
None
Annual obligations

Maintain such accounting records and financial
statements available for examination by the
Registrar or any person authorized under his hand
at its principal place of business or registered
office in Belize

Other obligations

Notify Minister within a reasonable period of any of the following changes:

  • Changes in any Key Functionary in the Fund.
  • Change in the registered office address
  • Change of its agent in Belize
  • Change in name or address of-
    • each director of the fund, if the fund is a company
    • each trustee of the fund, if the fund is a trust
    • each general partner of the fund, if the fund is a limited partnership.
  • Appointment, resignation or removal of a Director or officer
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
Mutual funds are exempt from business tax.
Withholding Tax
No withholding tax is payable on dividends and/or interest payable.
Value Added Tax (VAT)
VAT is not applicable to mutual funds in its entirety.
Stamp duty Act
Mutual funds are exempt from payment of stamp duty Tax
Trades Tax Act
Mutual funds are exempt from payment of Trades Tax
Immovable Property Transfer Restriction Act
Mutual funds are exempt from payment of Immovable Property Transfer Restriction
Exchange Control Act
The provisions of the Exchange Control Act do not apply to mutual funds.
Foreign Earnings Act
The Foreign Earnings Act is not applicable to mutual funds in its entirety.

Benefits of a Belize Professional Fund:

  • No exchange controls or restrictions on financial transfers apply to Belize-registered offshore mutual funds.
  • Minimum or zero tax on fees, commissions and profits earned by the Fund Managers, Advisors and Administrators.
  • Minimum or zero tax on capital gains, incomes, profits and dividends that accrue to the Fund.
  • Greater operational flexibility.
  • There are no minimum capital requirements for a Belize mutual fund