Puerto Rico, a unique territory under US jurisdiction, offers exceptional opportunities for financial institutions seeking to enter the global market. The international banking license of Puerto Rico provides access not only to the US financial market but also to an extensive network of correspondent banks worldwide.

Strategic advantages of a Puerto Rican license

Puerto Rico stands out among offshore jurisdictions with several key advantages:

• Confidentiality of operations: Non-participation in the CRS agreement ensures a high level of protection for client data.
• 20-year tax exemption on income from foreign capital.
• Possibility of applying a 4% tax rate on profits from local operations.
• Exemption from income tax for non-residents on interest and dividend payments.
• Economic flexibility: Exemption from municipal fees on gross revenue.
• Wide range of financial services: Opportunity to work not only in banking but also in insurance, investment consulting, and other financial sectors.

Puerto Rico has a classification system for banking licenses that determines the range of permitted operations and the target audience of financial institutions. The main license classes include:

Class A License:

• Allows full banking activities
• Gives the right to work with both residents and non-residents
• Requires higher authorized capital (minimum $5 million)
• Subject to stricter regulation and supervision

Class B License (IFE - International Financial Entity):

The Class "B" license allows operation as an International Financial Entity (IFE) and provides a wide range of services to non-residents, including opening deposits, lending, investing in securities, and currency exchange.

• Focused on working exclusively with non-residents
• Prohibits the use of the term "bank" in the name
• Requires less authorized capital ($550,000)
• Provides significant tax benefits
• Allows a wide range of international financial operations

Candidates for a banking license in Puerto Rico must meet a number of key requirements. The legal entity can be registered as an LLC, corporation, or partnership and must have a physical presence on the island, including an office with at least four employees. It is necessary to provide a detailed business plan for a five-year period, and the directors and owners of the company must have an impeccable reputation. Financial requirements include a minimum authorized capital of $550,000, of which $300,000 must be blocked. The management structure assumes the presence of at least one shareholder and one director.

How to obtain a banking license?

For fast and efficient license acquisition, it is recommended to contact IT-OFFSHORE specialists who will help guide the entire process, taking into account all legal and organizational aspects.