Local Companies
A local company [CAP 250] is a company that is suitable for local investment, realty ventures and general business in Belize. These companies are used to exempt owners from personal liability for their dealings in Belize as they are deemed legal persons under the Laws of Belize and can sue and be sued in its own name.
In Belize a local company must have a Corporate Constitution which includes the following documents:
- Memorandum of Association: This is the primary document which states the company’s business activities.
- Articles of Association: This is the company’s rules and regulations including procedures for board meetings, annual general meetings, dividends etc.
Statutory Requirements for a Company
First Statutory Meetings
- Every company limited by shares must hold a statutory meeting within a period of not less than three months from the date of which the company is entitled to commence business and shall file a statutory report with the Registrar of Companies.
Annual Meetings
- Every company must hold a general meeting at least once in every calendar year and the meeting must be held not more than fifteen months after the holding of the last preceding general meeting.
Annual Filings
Unlike International Business Companies, annual filings are mandatory for Local Companies. Every company must file Annual Returns with the Companies Registry and these returns are to be filed within fourteen days (14) of the first or ordinary general meeting of the company for each year. The Annual Returns is a summary of the company’s affairs for that year and importantly sets out if there was any change in the shareholders, directors or the company’s share capital. The return is a public record which enables investors or other persons to obtain information about a company at a glance.
Directors
A local company must have no less than two directors to conduct its affairs. Notice of any change of directorship must be filed at the Companies Registry.