Valsen Fiduciaries Funds

Belize Public 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 Public Fund

The Belize Mutual Funds Act defines a public fund as a fund that offers any shares it issues for subscription or purchase to any member of the general public or any section thereof; and which is registered as a public fund under the Belize Mutual Funds Act.

Belize Public Fund Requirements

 

Requirements

Description

  1. Applicable legislation

Mutual Funds Act 2000 (Revised 2011)

  1. Supervising Authority

International Financial Service Commission

  1. Corporate vehicle permitted

State the legal form of the fund,

Company;

Partnership; or

Unit Trust;

  1. Share capital or equivalent

    • Minimum subscription

None

    • 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

A Custodian licensed and approved locally the minister.

A Custodian licensed and approved under the laws of a recognized country or jurisdiction.

A person with a written permission from the Minister to carry on Business as a Custodian.

    • Fund manager / Investment Adviser
      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

A fund manager licensed and approved Local the minister.

A fund manager licensed and approved under the laws of a recognized country or jurisdiction.

A person with a written permission from the Minister to carry on Business as a Fund Manager

    • Fund administrator
      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

A fund Administrator licensed and approved Local the minister.

A fund administrator licensed and approved under the laws of a recognized country or jurisdiction.

A person with a written permission from the Minister to carry on Business as a Fund Administrator.

    • External auditor
      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

An auditor acceptable to the Registrar (in this Act called “the approved auditor”) in accordance with generally accepted auditing standards;
  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 500

    • Annual license fee

USD 3,500

  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 exempted
Immovable Property Transfer Restriction Act
Mutual funds are exempted
Immigration Decree
Mutual funds are exempted
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 Public 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