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AN OFFSHORE BANK REGISTRATION

Published: 05 Jul 2018

In order to open an offshore bank, every foreign jurisdiction has its own requirements, therefore, the first thing to do is to determine the structure and specifics that will be relevant to your situation.

The authorities that protect the tax sector from adverse effects that may cast doubt on the stability of the banking sector have thought through a number of bureaucratic and financial issues. One of these is licensing.

THE MAIN TYPES OF OFFSHORE BANKING LICENSES

In general, offshore banking licenses can be divided into two main types of licenses, which may have a number of additional subtypes:

1. GENERAL BANKING LICENSE OR LICENSE OF TYPE "A"

In most jurisdictions, it is understood as a license to provide banking services, at the place of registration and at the international level, for the general public. An offshore bank acts as any other legal entity, it can accept deposits from the public and perform general banking services with residents or non-residents.

However, in the vast majority of countries, activities are limited to providing services to non-residents, that is, only offshore banking services. This type of offshore bank is created instead of providing commercial bank services in offshore mode.

2. RESTRICTIVE BANKING LICENSE. OR A LICENSE OF TYPE "B".

It is often called an "internal" license and implies:

·         Limits the territorial activities of an offshore bank;

·         Limits the possibility of providing services in foreign currency;

·         Limits the ability to provide services to certain people.

In most cases, the bank cannot accept deposits from the public and can only provide its services to those organizations for which a bank license is issued.

This bank is used as a so-called "corporate bank" for active management of cash flows.

FOR WHAT PURPOSES MAY IT BE NECESSARY TO CREATE AN OFFSHORE BANKING COMPANY?

·         Tax planning;

·         Improvement of the image of a financial group or holding;

·         Active management of cash flows;

·         Issuance of bonds and guarantees for the purposes of the tender;

·         Easier access to banking information about business partners and competitors;

·         Easier access to financial markets;

·         More progressive financing of business activities of a holding or financial group;

·         Creation of confidential and flexible bank accounts;

·         Providing loans.

Another important factor for offshore banking is strict anonymity and confidentiality, which many potential investors are looking for.

Also, the advantages of offshore banking services that are available to owners of private international banks significantly prevail over the advantages of most other investment or financial organizations, such as investment funds, joint investment cooperatives, credit cooperatives, investment societies, etc.

MOST OFFSHORE BANKS ARE NOT SUBJECT TO:

·         taxation;

·         withholding taxes;

·         postal charges and fees;

·         taxes for checks issued or received;

·         other forms of direct and indirect taxes;

Offshore bank registration is a very delicate work that will depend on your personal goals and the chosen country.

With the help of SBSB team, it will be much easier for you to go all the way of creating an offshore bank, because the legal side will be under the control of professionals. We have 5 years of experience in the financial segment.

WRITE TO US

Yuliya Barabash

Firm: SBSB Legal Services
Country: Ukraine

Practice Area: Commercial

  • Saksaganskogo Street, 99
    Kiev





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