Opening of own offshore banking

Opening of own offshore banking

Opening own bank in the offshore business territories is not a rarity today, but a normal practice. The process of legalizing the activities of the financial structure is often characterized by a simple, and, of course, low rates or their complete absence for foreign investors. What moments to pay primarily attention when organizing your own business in an offshore jurisdiction will be discussed in this publication.


The creation of banking is always a rather laborious process, which is associated with a clear control of financial activities by authorized government agencies. The risks of capital loss are not excluded. Before drawing up a business plan, you should be familiar with the developing and busy areas for which demand has been formed. This will help minimize losses and significantly save on marketing and advertising campaign.

The main purposes for which offshore banks are created can be divided into the following areas:
• optimization of international payments;
• tax planning;
• avoidance of excessive control by the central and national financial structures, fiscal bodies;
• preservation of own capital in the amount of 100%;
• conducting of investment flows through offshore accounts;
• ensuring full confidentiality of international transactions.

When making a business in the field of lending should take into account the main points, usually there are five.

1. A successful startup

Opening a bank is an opportunity to organize a regular business with the condition of ensuring compliance with regulatory requirements in the field of lending. As in any case, for a successful start you need to adhere to the following conditions:
• earn the trust of investors;
• initially conduct activities on a legal basis;
• comply with the requirements of the regulator;
• drawing up of a consistent business plan for 3-5 years by professional participants in the credit sector;
• no violations of the law by the founder in the country of registration of the offshore, and citizenship;
• ensuring a high level of liquidity of assets;
• the existence of arguments to convince the registrar of the reliability of the enterprise.

The fulfillment of these requirements at the initial stage will allow you to open a business with a perspective and ensure a high profitability and reputation of the company.

2. Minimum capital

To create offshore companies in countries that allow such a mode of business, you must have sufficient funding from the time of registration of constituent documents.

The exact size depends on the country of business registration. Usually it is at least 1 million US dollars. However, in practice, the credit sector requires investments of at least $ 3-5 million, otherwise the company will not be able to reach the proper level of service.

3. Professional component

Without specialists in the legal, accounting, banking and other sectors, it is impossible to create a working legal structure. In this regard, ensuring reliable and qualified staff is the primary task of each leader.

It is recommended to open an office in a third country. It is better to hire translators and registrars in the territory of the jurisdiction where the company is established.

4. Software

Transactions are carried out online; therefore, special banking programs should be purchased for the reliability of operations. They usually do not cheap - a standard package with personal data protection and encryption - from $ 100,000 and above.

5. Correspondent accounts

They are received after the submission of all documentation to the authorized organization and the issuance of a license. Strict requirements are imposed on the conditions of storage of personal data of clients and their processing, non-compliance with which leads to the closure of the company. It is imperative to conclude a contract with a partner that maintains correspondent accounts in dollar currency.

Despite all the difficulties of organizing offshore banking, such a business is quite common in the relevant jurisdictions. With an integrated approach to business and a sufficient level of financing, an enterprise has chances for success and high profits.

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