LLC in Belize or the Cook Islands to protect assets
Limited liability companies registered offshore have become a popular tool for asset protection in many countries. Experts recommend opening an LLC in Belize or the Cook Islands, which reliably protect LLC. Local laws do not recognize the decisions of foreign courts, have a short claim period, and do not allow removal of company assets in favor of creditors.
LLC in Belize and asset protection
Belize protects LLCs robustly at the statutory level. Main provisions:
- Belize does not recognize foreign court judgments;
- Before filing a lawsuit against the LLC, the creditor must make a deposit, which is equal to half the amount of the debt. If it is small, you have to pay at least $50k;
- The statute of limitations on fraudulent conveyance against the LLC is 2 years from the date of the conveyance or 1 year from the creation of the LLC;
- Lender cannot freeze assets until the hearing is completed;
- The borrower cannot assert a claim against the LLC, only its individual members;
- The only way to collect the debt is to collect the profits that accrue to the debtor;
- This helps ensure that the assets of the LLC remain intact, protecting it from the interference of an outside creditor.
Another important point in favor of registering a company in Belize 2022 - members' contributions are not fraudulent transfers. This allows the assets to be protected if the borrower sues the LLC as a fraudulent transferee of assets from the debtor. The court can only rule in favor of the borrower if the borrower succeeds in proving criminal intent. Even if it manages to do so, the lender will not be able to cancel the transfer of the money. They are all protected from fraudulent transfer claims at the statutory level.
Cook Islands LLC and asset protection
Registering an LLC in the Cook Islands provides world-class asset protection at the statutory level. A creditor is defined as a person who claims an assignment of certain property of an LLC member. He or she must file in local court to do so, but even if he or she wins, there are many nuances.
- A creditor with an order to collect a debt cannot interfere with or participate in the company. He/she also cannot seize, transfer or liquidate any assets of the LLC, or force the dissolution of the company;
- Foreign court judgments to satisfy the claim are not recognized. The borrower must come to the island in person and file a lawsuit in court;
- The maximum term of the lawsuit is 2 years;
- Absolute confidentiality is assured. This means that there is no public registry on the island with the data of the owners, directors, managers of the company. The creditor still needs to find you and may not have time to do so;
- Any member of the LLC who is the subject of a claim can still work for the company, exercise their rights. The member's interest is not subject to collection of the debt;
- The debtor's interest cannot be taken from the company for collection of the debt.
Among the few ways a judgment creditor can collect a debt is to take the profits the company pays to the debtor.
How to protect your assets
To protect your assets by starting a company in Cook Islands 2022 or Belize, contact IT-OFFSHORE experts.