The offshore bank may be registered both in the name of the legal entity and the natural person. At certain time, many businesses realize the lack of security to carry out their transactions, certain stability in banking services and everyone definitely prefers the freedom of action and more profit for their company.
Main advantages of offshore bank
Certain benefits and advantages are allowed through the legitimate financial structure such as an offshore bank.
First of all, the owners have all their transactions confidential held in their bank. The ability to store assets in the private bank gives the undeniable advantage; your savings will not be frozen for any unknown reason as it may happen in case of national banks. Through your bank, you may securely make transactions and investments.
Depending on jurisdiction of the offshore bank, it will be fully or partially exempted from taxation on profits that will be then transferred to dividends.
Tax planning will ensure the profit of companies and banking structures. Access to international markets and preferential taxation regime granted to you by the offshore jurisdiction allows accumulation of the corporate resources and their distribution in favor of founders. Your bank will be free in terms of currency flow in case of doing business outside the jurisdiction of the offshore bank.
However, the offshore bank opening has its requirements and rules to follow and meet. The bank owner will have to undergo a full Due Diligence check. To obtain a bank license, the bank owner should prove certain experience in bank management or to begin with, to conduct active activities in the financial, international investment or banking business.
Choice of jurisdiction
Our company gives the opportunity to open an offshore bank in the following jurisdictions: the most accessible and popular is Dominica, followed by Belize, Seychelles and the Bahamas.
The most profitable thing that this jurisdiction may offer is opening of an offshore bank in conjunction with acquisition of the second economic citizenship. Since both processes request approximately the same list of documents, you may have them altogether packed.
Dominica banks may carry out any banking operations when it comes to legal activity. Accounts may be opened by foreign companies and individuals.
Dominica is a trustworthy offshore zone that completely exempts registered banks from taxation. You are only required to pay an annual duty of the license renewal by the state. You will be able to choose the type of license for your bank, whether it is solely for offshore activities, or mixed onshore/offshore activity. The second type of license will give the chance to deliver services to residents of Dominica allowing privileges to issue your own MasterCard or Visa cards, as well as increasing your rating with major partner banks. However, you will have to keep separate records, since the income from activities with residents of Dominica is taxed.
Take your time opening an offshore bank – the procedure takes about 6 months. All depends on how quickly you will get your license. The procedure of license obtaining takes from 2 to 10 months.
Be ready to submit a range of documents to speed up the procedure. The required authorized capital should be in the amount of at least $1,000,000 USD.
Our company is willing to give its hand to you with registration of the offshore bank at all stages; we can also give help in further support in your activity.
Banks in Belize allow the opportunity to conduct banking activities in foreign currency and Belize dollars. The important provision to open the offshore bank is availability of the required qualification of the bank owner.
Belize offers 2 types of licenses for offshore banks:
- License Class A allows banking activities without restrictions. The least capital of $1,000,000 USD;
- License Class B allows only offshore banking business that is specified in license. The capital is at least $1,000,000 USD
The bank in Belize is entitled and recommended that it has an office within Belize to carry out banking operations therein to comply with the issued license.
The time for application is from 6 to 18 months. Documents should be prepared, especially the business plan of the company to be submitted to representatives of the Central Bank of Belize.
The running foreign bank has the highest probability of opening an offshore bank in the Seychelles.
Seychelles, as compared to other countries, are attracted by their reforms in the financial sphere. The standard of living in the Seychelles is quite high, and due to its high confidentiality as an offshore zone, it successfully attracts foreign investors.
The offshore bank will be able to serve clients of any level, from small companies to large corporations. The bank license allows to provide the widest range of banking services. The least capital should be $1,000,000 USD.
To get a license, the central bank is required to submit the required documents and information on the company owners and its activities.
To open an offshore bank in the Bahamas, the company with proven good standing is required, its solvency, and experience in the banking field.
It should be noted that the license will be issued to those banks that have capacities to improve the good standing of the jurisdiction by their presence and provide a decent level of services.
The bank is given a choice of one of licenses that affects the amount of annual state duty. The general license will allow unlimited banking activity. The required share capital: $1,000,000 USD.
There are other licenses that require the authorized capital in the amount of $100,000 USD allowing certain opportunities to conduct banking operations. such as: transactions with gold and currency, trust management, services to limited number of persons and others.
The Private Financial Services Group also renders assistance in getting bank licenses, building bank structures on the turnkey basis in other jurisdictions, either.
For more detailed information and the choice of appropriate jurisdiction, please, contact our specialists.