The amendment to the International Business Company Act that took effect from 1st Jan 2019 has led to the abolishment of the IP holding company regime in Belize. For IBCs registered before 30th Jun 2018 with IP assets acquired up to 16th Oct 2017 will be grandfathered until 30th Jun 2021.
The International Financial Service Commission (IFSC) has now released guidelines for assessing whether IBCs meet conditions to continue to hold, own or deal with IP assets up to the expiration of the grandfathered period.
All Belize IBCs regardless of holding IP assets or not are now in charge of completing IP Assets Grandfathering Certification Program Form (IPAG Form) and relevant annexures (only if do have IP assets) to be lodged to Belize IFSC no later than 31st Jan 2020 via their registered agent.
FYI, as formally stated in the regulation, IP assets include:
Any intellectual property right in intangible assets, including but not limited to the copyright, patents, trademarks, brand, and technical know-how, from which identifiable income accrues to the business (such income being separately identifiable from any income generated from any tangible asset in which the right subsists).
An IBC that fails to comply with the aforementioned requirement will face heavy penalties of up to $100,000 per case or even a forced strike off.
Should you have any questions in relation to the IP assets grandfathering program, don’t hesitate to contact us at service@bbcincorp.com.
