What are the benefits of setting up an offshore bank

Individuals and companies that wish to establish an offshore bank are required to obtain the relevant license. There are a number of benefits of setting up an offshore bank, including favorable taxation and higher levels of privacy.

Reasons for establishing an offshore bank

Setting up an offshore bank or financial institution enables you to offer your clients a range of benefits, including:

Favorable interest rates and low taxation

Many onshore banks and financial entities do not offer their customers low interest rates. Offshore banks however, allow individuals to take advantage of low or zero taxation, and therefore benefit from building a wider client base.

International banking

There is a growing demand from individuals and companies to transfer monies internationally. Offshore bank account holders can bank internationally as the majority of offshore banks enable clients to transfer capital overseas.

High levels of privacy

Individuals and companies interested in setting up an offshore bank can select from a wide range of favorable jurisdictions that offers high levels of privacy and anonymity.

Setting up an offshore bank

The process of establishing an offshore bank requires the applicant to administer the relevant documentation and submit them to the financial regulatory body of their chosen jurisdiction. It is imperative that the applicant meets the necessary capital requirements, and that they obtain the correct type of banking license from the jurisdictions financial regulatory body.