Belize is known to have a strong infrastructure for financial business dealings. They have flexible terms for the non-locals and this why forex trading companies are popular there. But before you can engage in any forex trading activity, you need to be licensed.
A forex trading license allows you to run a consultancy firm that provides clients with financial solutions. This includes offering them a platform to trade in forex exchange. It also includes offering them money lending and brokering services, payment processing, and money transmission. Usually, the license is offered by the International Financial Services Commission (IFSC).
To apply for the forex trading license, you need to understand a few aspects. Here is a quick guide to help you out:
1. Register Your Company
Before you apply for the Belize Forex License, you have to register your business. If you are a non-local, you need to register it as an International Business Company (IBC). An IBC is allowed to engage in any kind of forex trade provided that it has the license to do it.
2. Meet the Documentation Requirements
You need to submit the necessary documents to IFSC when you submit your license application, including:
• Business plan
• Financial forecasts
• Article of association
• Anti-money laundering proof
These documents are meant to back your application and to give your IBC license credibility.
3. Meet the Financial Requirements
Other than paying for the IFSC license fee, which is usually $5,000, you are required to deposit at least $100,000 in a local bank. This means that you need to open a Belize bank account. The money stays in your account throughout the entire period that the license is in operation. The account opening should be done in the initial stages of applying for the forex license. As for the deposition, it should also be done early, at least before the reviewing period for the application is over. The process takes a maximum of 50 days.
4. Meet the Directors Requirement
Directors are required to have the relevant knowledge and experience. This ensures that they can run the business professionally by observing the needs of forex trading. What’s more, IFSC of Belize has a regulatory mandate that stipulates that due diligence should be done on the background of each director of a company and that the information is kept up to date all the time.
Normally, the whole process, including the review of the application, takes 4-6 months. You just need to exercise patience and observe the above guide. The process is just that straightforward and if you get help, it may take less time.