Bank Ownership Benefits

There are many benefits to owning your own offshore bank. Most of the advantages are related to offering your existing or potential clients banking services in offshore financial centers that have zero or low taxation regimes, and therefore allow your clients to safely store their funds offshore for tax planning benefits.

However, bank ownership in an offshore financial center that offers zero taxation also gives you the benefit of making your profits tax free. This allows you to use your tax savings either as additional working capital, to be used for expansion of your institution, or for you to make more money out of the dividends that your shares will give you.

Advantages of Owning an Offshore Bank

There is very little ever said about the advantages of owning a privately held bank. However when looking at the profits that a publicly held bank makes, it is easy to understand that the biggest advantage of ownership is the profits you can make from the industry.

Another major advantage is being able to offer your clients a wider range of financial services than you currently offer them. Owning the most basic offshore bank license, a Class B restricted bank license, allows you to offer banking services to a predetermined list of clients. This means that if you currently have a financial service company, with an existing customer base, you can also then offer your clients services on top of the financial services you currently offer them.

Other than the standard advantages of bank ownership that are mentioned above, owning an offshore bank offers further advantages to anyone looking to offer their clients services. The number one reason for owning an offshore bank is taxation regimes. Onshore institutions are subject to the same taxation rates that companies are, and therefore pay large amounts of tax on their profits made onshore. With the right jurisdictional choice, you can end up earning your profits from your offshore bank tax free, giving you more money through tax savings.

Also, offshore bank ownership in a low or zero taxation regime means that your clients can also take advantage of the tax regime that you operate under, and can use this to their advantage when they do their tax planning.

To find out more about the benefits of owning an offshore bank, please Contact Us.

Alternatively if you are ready to setup your own offshore bank, and are ready to start the license application procedure, please complete our Bank License Application form.