How to Register a Sole Proprietorship (Empresa Individual) in Belize

Many independent contractors opt to operate as an empresa individual (sole trader) in Belize as the structure offers a straightforward, low-cost setup with minimal formalities. For consultants, freelancers, and small service providers, it is often the most efficient way to establish a legal business presence. The main challenges lie in coordinating with multiple authorities and keeping up with recurring obligations like tax filings and annual trade license renewals. Nevertheless, the advantages of independence, flexibility, and low entry barriers make it a consistently popular option.

Disclaimer: This article provides general guidance and is not a substitute for legal or tax advice. Always verify requirements with official government sources or seek professional help.

What is a sole proprietorship in Belize?

In Belize, a sole proprietorship is officially referred to as an “empresa individual”. Depending on context, it may also be called:

• Sole trader
• Self-employed individual
• Independent contractor

These all describe one person legally running a business without forming a company.

How does a sole proprietorship (empresa individual) work in Belize?

Empresa individual vs. other business structures in Belize

In Belize, the main alternatives to registering as an empresa individual include incorporating a limited liability company (LLC), forming a partnership, or establishing an International Business Company (IBC) for international trade and investment.

Step-by-step guide: How to register a sole proprietorship in Belize

Step 1: Check your eligibility

Citizens, legal residents with the proper permits, and even foreign nationals can register an empresa individual. Citizens face no restrictions, residents may apply with proof of their status, and foreigners or non-residents can often register through the OBRS system, though some municipalities may require a local partner or agent for licensing.

Step 2: Choose your business name

You may trade under your legal name or adopt a trade name. If you use a trade name, you must check availability via the government's search tool.

Step 3: Gather required documents

You will need:

• Valid identification (passport, Belize national ID, or Social Security card)
• Proof of address in Belize (utility bill, lease agreement)
• Lease or premises documents if applying for a trade license
• Trade license application form from the relevant municipal council
• Social Security registration forms, if you plan to hire staff

Step 4: Register your business with BCCAR via OBRS

You can register your business online via the Online Business Registry System (OBRS) portal by creating an account and submitting all necessary information.

Step 5: Pay fees and obtain your trade license

Registration costs $25. Processing usually takes a few business days.

Step 6: Fulfill post-registration obligations

After registration, you must apply for a trade license from your local City or Town Council. The annual fee is typically calculated as 25 % of the annual rental value of your business premises. You must also register with the Belize Tax Service (BTS) for income tax and, if turnover exceeds the government threshold, for general sales tax (GST), which is Belize's version of VAT.

Financial and tax obligations for sole proprietors in Belize

You are responsible for:

• Income and business tax: Sole proprietors (empresas individuales) pay personal income tax at a flat rate of 25 % on chargeable income above $29,000 (the exemption threshold as of 2025). Filing is done annually with the BTS.
• GST: The standard rate is 12.5% on most goods and services. Registration is mandatory if your turnover exceeds $75,000 per year. Registered businesses must charge GST, file periodic returns (usually monthly), and remit tax via the BTS. Input tax credits are available to registered taxpayers, just as in other VAT systems.
• Social security contributions: If you employ staff, you must register with the Belize Social Security Board within 7 days of hiring your first employee. Contributions are shared between the employer and the employee and vary by salary band. Self-employed persons may also voluntarily contribute to the system for healthcare and pension coverage.
• Record-keeping: Sole proprietors are required to keep accurate accounts, including invoices, receipts, and supporting documents for tax filings. Records must be retained for audit purposes by the BTS.
• Invoicing: Every invoice must include your registered business name, address, Tax Identification Number (TIN), date, description of goods or services supplied, and any applicable GST. Invoices must be numbered sequentially and preserved in your records.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

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FAQs

What is the minimum capital required to start an empresa individual in Belize?
None. There is no minimum capital requirement.

Do empresas individuales need to register for VAT/GST?
Yes, if annual turnover exceeds BZ$75,000, you must register and charge GST at 12.5 %.

How much are the standard monthly or annual contributions?
Trade license fees are calculated at 25 % of the annual rental value of business premises. Social Security contributions depend on employee salaries and fall between 7.5 % and 13.5 % combined rates.

Can an empresa individual hire employees?
Yes. You must register with the Social Security Board within 7 days of hiring your first employee.

How long does it take to register as an empresa individual in Belize?
Usually, it takes just a few business days through OBRS.

Can foreign nationals register as an empresa individual in Belize?
Yes, though some municipalities may require a local partner or agent.

Do empresas individuales need a separate business bank account?
Not mandatory, but highly recommended to keep finances clear.

What happens if I stop working as an empresa individual?
You must file a cessation form with BTS and cancel your trade license.

Are there any government incentives for new empresas individuales?
While there are broader fiscal incentives for specific sectors, there are no universal startup discounts for sole proprietors.

Can I use Deel as an empresa individual to get paid by international clients?
Yes. Deel supports payments in multiple currencies with low fees and transparent rates.

Does Deel generate compliant invoices for empresas individuales?
Yes, Deel automatically generates invoices that meet Belize’s requirements.

Can Deel help me with taxes as an empresa individual in Belize?
Yes. Deel provides downloadable reports and payment records for filing purposes.

Does Deel offer contracts for freelancers and empresas individuales?
Yes, Deel includes locally compliant contract templates.

Can I access benefits through Deel as an empresa individual?
Yes. Deel offers optional perks like health insurance and retirement savings.