Belize forex companies are charged with the responsibility of rendering forex services to forex traders within and outside of Belize. However, there may be a slight difference in the existence of Belize forex companies in comparison to other forex companies in other parts of the world. In this article, we will point out special acts about Belize forex companies that traders should be aware of.
BELIZE SERVES AS AN OFFSHORE OPTION TO A LOT OF FOREX COMPANIES:
A lot of forex companies have deliberately moved offshore to Belize for the purpose of tax avoidance. Belize may not be the first to come in mind when one thinks of financial services and robust economy, but they sure have managed to attract a lot of investors (including forex companies) with their no tax payment policy for external earnings. As a result of this, Belize has established a reputation as a popular offshore option among forex companies.
Note that Belize does not in any way encourage tax evasion; which is a punishable criminal offence. The country can only serve as an option for tax avoidance; which is different from tax evasion. A lot of people might see this as the same, and may be of the view that government should already cut down tax avoidance, but it is a complicated issue (if not impossible).
BELIZE HAS AN EXCELLENT SECRECY LAW THAT PROTECTS INVESTORS:
There is a standing law in Belize that protects the privacy of investors in Belize. Not only do investors stand the opportunity to avoid tax, they can also stay hidden from the entire public if they so wish. This may be good for some personal reasons, but in business, there are a lot of questions that must be answered if one must do business with a Belizean investor that prefers to hide his or her identity. Forex traders that wish to sign up with forex companies in Belize should be sure to go with those of them that are regulated. This way, owners of forex companies in Belize can stay anonymous and still appear trustworthy to their clients.
FOREX COMPANY REGULATION IN BELIZE:
The International Financial Service Commission (IFSC) is responsible for regulating forex companies in Belize. The IFSC promote Belize as an international financial services center.
They also issue operating license to forex companies in Belize and supervise the services offered by such companies.
There are a lot of forex companies in Belize that do not have this license. It is important that traders avoid doing business with such brokers as that can be a really risky venture.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.