Offshore Bank License
An offshore bank license authorizes the holder to operate a bank in a country that provides services to clients that are residents in other countries. The license is issued by the country in which the bank is operated. Setting up an offshore bank can help the holder legally save taxes and maintain earnings and profits in a low or zero tax jurisdiction. Although the application and licensing procedure is quite complicated, once the license is approved, the benefits are significant.
Types of banking licenses
- General license: also referred to “Class A” license, this license allows you to carry out all banking activities.
- Restricted license: this license allows you to carry out specific activities stated in the license only.
Main reasons of obtaining an offshore bank license
- Payment optimization
- Asset protection
- Tax planning
- Enhancement of investment performance
- Fund safety
Banking activities that can be carried out with an offshore bank license:
- Take deposits
- Make loans
- Issue debit/credit cards
- Issue credit letters
- Issue bank guarantees
- Issue bank references
- Issue bonds and securities
Countries that offer offshore banking licenses include: Antigua, Belize, Cayman Islands, Cook Islands, Dominica, Panama, St. Vincent, Samoa and Vanuatu.
