Article
3 min read
Author
Anja Simic
Published
August 12, 2021
Last Update
July 04, 2024
Table of Contents
Sole proprietorship in Belize
How to register a sole proprietorship in Belize
Obtaining a trade license in Belize
Tax registration in Belize
General Sales Tax (GST) registration
Social Security Registration in Belize
Ensure compliance with our localized contracts
Belize is a Caribbean country on the northwest coast of Central America. This country is fortunate to have many cultures and languages, but the official language is English. Belize’s economy is based on agriculture and merchandising, and it also produces industrial minerals.
A sole proprietorship is a business that is fully controlled by one person. That person is entitled to all profits and losses of the business, which means they have unlimited liability. The Government of Belize encourages foreign investors to operate in Belize with attractive incentives.
The first step in establishing a sole proprietorship is creating your brand and becoming recognizable in the market. To succeed in that, you should choose and register your business name. This step is essential, and the process is quite straightforward that takes no longer than a day. Undertaking this procedure takes place in the Companies & Corporate Affairs Registry in Belmopan. Requirements for business name registration are:
For additional information and questions, you may send an email to this government address.
If you're not looking to become an independent contractor, but hire one - learn how you can do it compliantly in Belize.
The next step is obtaining a trade license. That is a requirement for every person that exchanges goods or services for monetary value. For this process, head to the City Council. Annual payment could be checked at the City Council website. The yearly trade license fee is usually calculated at 25% of the annual rental value.
After obtaining a trade license, you need to register with the Income Tax Department and Government Sales Tax Department for tax purposes. After completing the application forms, you will be issued a Tax Identification Number (TIN). This number is also used for General Sales Tax (GST). The tax is calculated on total revenues in all forms possible (cash or received or credited without any deduction for expenses). Taxation is referred to all individuals and businesses that meet the following criteria:
General Sales Tax (GST) in Belize is collected on business transactions at the point when the services are performed. The rates could be standard 12,5% or 0% (Zero-Rated). If you reach an annual taxable turnover of over BZ$ 75,000, you must register at the Department of Government Sales Tax. With this procedure, you don’t register the business, but yourself, as the person conducting the business activities. Only registered persons can charge GST on their supplies.
If you employ one or more persons, you must be registered for social security at the Belize Social Security Board. The registration must be submitted no later than a week after employing the first employee.
Generate contracts in seconds. We’ll ensure that you're compliant with local labor laws, no matter where you live. Book a demo.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Solutions
© Copyright 2024. All Rights Reserved.