The creation of banking establishments, specifically offshore ones, was a simple task five years ago. However, when a wave of liquidity from the US Federal Reserve flooded into the market, such schemes became dangerous, as they made it possible to create “carousels of garbage banks” to divert large amounts of funds quickly entering the market. For this reason, a number of measures were taken to close the possibility of quickly creating cheap banks. Many investors still resort to offshore bank for sale – an option accessible to everyone and helping to avoid unnecessary difficulties – red tape, which often blocks the path to success for businesspersons.
Of course, this version is only one of the existing ones, but it illustrates the quality of the changes that have taken place in situation with creation of new banking establishments. In practice, reasons for the changes are not so significant, current situation and opportunities for establishing offshore banking structures are much more interesting.
Get an offshore banking license
Significant point must be met is capitalization. Once upon a time, to establish offshore bank, it was really enough capital of 30 – 50,000 US dollars. In such countries as Abkhazia, Transnistria, various African countries. But what will you do with a bank certified in unstable zone? Where will you find necessary number of clients who will agree keeping long-term deposits in such a bank? Then, together with the bank, you must immediately create a sect.
The more narrowly focused your license and the lower the risk to the general public for the particular financial service you choose, the lower the bank’s capitalization demands will be. Biggest capitalization points are if you want to accept deposits from third parties.
Banks in a normal, internationally recognized state, even for an offshore banking license, will require a capitalization of 300,000 to 1,000,000 US dollars. If you intend to look for non-standard solutions from the past, think about how you will then receive SWIFT. Think about how you will open correspondent accounts and where. As a rule, these acts stipulate more lenient requirements than for the reserves of local banks.
The next important requirement is representative office. Your banking permission, even if it allows you to receive deposits, may prohibit you from taking amounts from local population, and nevertheless, a decent representation in licensing state is needed. It cannot be a closet with one employee. There should be at least 2-3 employees, as people tend to get sick and go on vacation. For a bank representative office, you cannot use your local lawyer’s office with address already having 2,000 firms registered.
Offshore banks for sale: advantages
By establishing bank in offshore, businesspersons can minimize (or even fully eliminate) tax burden, but almost always, with rare exceptions, get a lot of additional benefits:
- 0% tax (tax-free offshore) for most of enterprises;
- confidentiality of ownership;
- accelerated and simplified terms of company approbation;
- lack of monetary control;
- minimum requirements for accounting, reporting and auditing;
- ample opportunities for remote management, banking account availability;
- only positive reviews about offshore companies, much more.
With a fundamental change in tax legislation in one area, you can apply for firm transfer from one state to another; it’s called redomiciliation.
Documentation for getting bank for sale in locations offshore
Package of documents differs from the selected zone, but mostly following is sufficient:
- scans of passports of company participants;
- payment.
A distinctive feature of many zones being classified as offshores is their high level of confidentiality, formalized legally. According to the legislation of such states, it is almost impossible to obtain information to third parties about the actual firm owners. Thus, we recommend you to turn your attention to a ready-made offshore bank for sale and get advantage of the help of experienced professionals.
