The Central American country of Belize has earned a strong reputation as an offshore financial center for independent professionals, consultants, and other small businesses. The International Business Companies Act allows for the formation of companies as a means to facilitate foreign direct investment, thus attracting a global clientele of non-resident entrepreneurs. International Business Companies (IBCs) can stop trading and dissolve their operations. Winding up can be voluntary initiated by its members, it can also be caused by insolvency, by violation of or failure to comply with the Companies Act, or by order of the court. If a company is dissolved, it ceases to trade while its old members continue to hold their responsibilities. In addition, properties that have not been disposed of cannot be accessed by the old members of the company. Consequently, stakeholders may have important reasons to initiate the reinstatement of the Belize (offshore) IBC.
Offshore Company Reactivation
Despite the fact that a Belize (offshore) IBC holds corporate personality and thus separates the legal entity from the members, the personal responsibility and liability of their members cannot be entirely excluded. This is especially true when the company is dissolved and the members can be held accountable for corporate conduct. Former members and beneficiaries of a dissolved offshore IBC are unable to use the company and its belongings. As a consequence, the former members and beneficiaries cannot benefit anymore from the assets of the company, even when these very assets are released at date in the future.
Contrary to what most stakeholders believe, the closure of an offshore company ends its activities and terminates access to the corporate belongings. The closure does not refrain the members and beneficiaries of the lapsed company from their legal responsibilities. This also applies to the offshore IBC incorporated in Belize. Company reactivation and restoration that results in the revival of the company name is therefore, depending on the appropriate cost-benefit analysis, often justified.
The Companies Act discusses the winding up and dissolution procedures of the IBC. The contents herein emphasizes the importance of the memorandum and articles of association, which describe the initial founding of a company, the constitution, and the internal policies of the corporation. Mandatory dissolution of corporations is also discussed in the Act. But Belize (offshore) IBCs, on the other hand, are frequently removed from the corporate registry for non-payment of annual fees and disbursements. The continuation of services that are attached to the dissolved company is usually not possible. As a result, many corporate beneficiaries are in difficulty when they attempt to recover their bank balance, corporate assets, or are involved in legal and insolvency proceedings.
Belize Offshore IBC Reactivation and Restoration Procedures
Offshore IBC’s provide for extensive advantages for international entrepreneurs and other location independent professionals. These advantages are inextricably linked with responsibilities. Responsibilities that are grounded in domestic laws of the country of international company formation. Yet, the implementation of foreign legal systems and the application of local case law is not always easy to understand and employ for non-resident company owners. It is therefore important to exercise diligence and care when reactivating and restoring offshore companies, as missteps can have devastating consequences.
Reactivating and restoring a Belize (offshore) IBC often requires swift action since these procedures are triggered by legal or financial pressure against the beneficiaries of the dormant company. Such pressure may be derived from legal action against the company that justifies an appeal to personal responsibility of the beneficiary. Furthermore, reinstatement of the legal person is also often triggered by a deferred claim filing procedure in bank failures and asset recovery when only companies in good standing are repaid.
In legal matters, procedures and deadlines are made public. Its potential may be lost for parties who cannot comply with these rules. Decisions must be based on the correct information. In order to achieve the desired result in a short amount of time, information gathering must begin quickly. Therefore, we invite you to contact us for a free consult today. You can complete the contact form below to evaluate and discuss your case.