Belize LDC (Belize LLC)
The Belize LDC, limited Duration Company, is a hybrid of the IBC and the LLC, a company that s established for limited or specific durations. Find out if this offshore company is the right one for you. Full list of Belize company formation prerequisites, main benefits and advantages of the Belize LDC set out here.
Belize Limited Duration Company (Belize LDC)
Under the Belize IBC Act, a company called the Limited Duration Company (LDC) may be formed with all the benefits of the IBC. The main difference between the IBC and LDC is that in an LDC, managers (or members) not directors are appointed, and the lifespan of the LDC is limited to 50 years, and there is no need for a board of directors.
In some ways the Belize LDC is similar to the LLC company, or the GmbH and very often referred to as Belize LLC in that they are governed not by the By- laws (used by the companies like IBC) but by operating agreements which can contain provisions for much of the company’s administration.
Belize LDC Limited Life
Unlike the Belize IBC the Belize LDC has a limited life, which means that when being formed, the memorandum must specify the intended life of the company. The maximum life for the Belize Company is 50 years which can be extended after the initial fifty years is up.
Belize LDC Benefits
The Belize LDC offers many benefits including asset protection, lawsuit protection, financial privacy, plus full corporate tax exemptions, plus the LDC has all the advantages and features of the Belize IBC.
- Existing companies can be converted to an LDC to benefit from this favourable tax treatment with no tax at the corporate level.
- Member shares or assets in a LDC can be protected by having clauses in the articles of association, which can prevent the transfer of any share or interest of a member.
- The company can be managed by its members and does not require a specific manager such as is the case in an LLC.
- A single person can set up a Belize LDC