Eternity Law International — News — Offshore financial license

Offshore financial license

Published:
March 12, 2023

A financial activity is an activity in which the funds of a person are managed by a third party.

Companies that are used for personal gain, such as personal investment companies, funds, or companies set up to manage their wealth otherwise, are not technically financial services companies, as these funds are solely owned by the owners.

However, this does not mean that you can create a company and transfer ownership to anyone. There is control of the respective jurisdictions as to how property can be transferred, what requirements must be met when registering and maintaining a company.

For a general understanding, it should be assumed that financial services refer to services related to money in one form or another provided to third parties.CYT5A

Various activities, different regulation

While many recognize that the activity they intend to conduct requires a license, it creates confusion when potential financial service providers fail to understand that different activities have different requirements.

  • Investment services;
  • Foreign currency exchange services;
  • Deposit services;
  • Credit services;
  • Money transfer services;
  • Prepaid card services;
  • And so on and so forth.

Each type of the above types of services requires a separate license.

Insurance is also a type of financial services that is regulated by a separate law – as opposed to just a chapter in the financial services law.

Investment services

These are services in which clients deposit funds into your company account, which you then invest on behalf of the client. The profit is divided between you and the client on a contractual basis.

The license can also be investment and consulting.

This activity requires a high degree of skill. But a license is not always required. For example, if the number or number of clients is very low.

Licensing requirements vary from jurisdiction to jurisdiction, but it is generally fairly easy to obtain a license if you have the appropriate skills and can contribute at least $ 100,000 in registered capital. However, there are significantly fewer options.

Foreign currency exchange license

It is a type of investment where you invest in different currencies or currency pairs on behalf of clients.

This type of license most often refers to buying and selling currencies. Clients who deposit USD in order to buy GBP at the suggested GBP rate, which is determined based on how much GBP other clients want to sell.

To profit from these activities, you need good start-up capital and good banking connections.

Any license usually requires a significant amount of work and time.

License to accept deposits

This is probably the easiest service to offer. There are a variety of legal entities suitable for deposits from various bank-like entities such as:

  • Sparkasse / sparkassa,
  • New Zealand FSP,
  • Panama,
  • Costa Rica,
  • or a specially licensed IBC.

A license is not always required. But again a license may become necessary. On the one hand, to satisfy banking partners.

License to issue loans

Banks are often referred to as lending institutions because this is what distinguishes them from mere deposit structures.

Issuing loans to individuals most often requires a license, but for small operations it may not always be necessary. Business lending can be carried out under the guise of investments and, perhaps, also not always require a license.

Money transfer license

In order to compete with major remittance providers like Western Union, Xoom, RIA, Transferwise, Transfast, you must license or become their agent.

Unlicensed money transfer services are severely prosecuted.

Prepaid cards

If you want to offer prepaid card services, you have three options:

  • Partner with a licensed card issuer;
  • Partnership with a partner of a licensed issuer;
  • Become a licensed issuer.

The first point does not necessarily require a financial services license, but the licensed issuer would prefer you to have some form of accreditation. However, being an experienced professional may be enough.

Many service providers have partnerships with several offshore or European banks that operate on the brink of the law.

The second point is the simplest and most often uses anonymous prepaid cards without ID and IBAN.

There are practically no requirements for activity. Such a scheme of work is most often illegal and is quickly suppressed by the relevant regulator, if the regulator is concerned about it; often the regulator turns a blind eye to this service sector at the present time or because compliance with the requirements is finally tightened by legislation.

The third point undoubtedly requires a license – often a full, unlimited banking license.

An offshore license is an opportunity and a way to satisfy the need to be licensed with tax advantages and no tax and foreign exchange regulation, as well as relaxed licensing requirements.

Reality

Times have changed. Law enforcement is getting better, interpretations are stronger, and authorities are more attentive. Countries are becoming more transparent and open by implementing joint policies BEPS, GAAR, etc.

The specialists of Eternity Law International will provide you with expert advice on obtaining a license in a suitable jurisdiction.

If you have any questions about obtaining a license in an offshore or European jurisdiction, please contact our specialists for detailed advice.

You could be interested

Company registration in Portugal

The Portuguese Republic is sited on territory of Iberian Peninsula. This state is in the tenth place in the rating of Europe regarding the procedure of “Companies Registration”. Portugal attracts a large number of entrepreneurs who are focused on doing commercial activities abroad. This happens for a number of the following reasons: low rates for...

Top 5 Best Jurisdictions for Forex License

The main concept and idea of Forex activity is currency exchange. Traders profit from transactions for the purchase and sale of currencies with a difference in exchange rates. In addition to trading directly, there are also Forex traders who make money by betting on the increase or decrease in rates. Below we will consider the...

Forex Brokerage License in Seychelles

If you plan to operate in financial markets and offer FX brokerage services to clients from regulated jurisdictions, you must apply for a Forex broker license, and Seychelles, definitely, suits well to get it. This license is required for all brokerage firms, mutual and hedge funds. Reasons for choosing an offshore jurisdiction Authorities in both...

Obtain a Trust License in the Cayman Islands

An authorization such as trust license Cayman Islands, issued by the jurisdiction’s Monetary Authority, allows organizations to offer a full range of trust services to private and corporate clients. For this category of business in the Caymans, permission to conduct trust activities is important for the establishment of international business, the expansion of corporate interactions...

Banks for sale in Switzerland

This country possesses a three-tier banking system. First level is National Bank and its head offices, agencies, cantonal banking establishments and regulatory authorities. The National Bank provides a structured monetary policy and, together with supervisory authorities, controls the entire financial industry. Thanks to the reliability and smooth operation of this type of system, jurisdiction is...

Dubai financial market

Dubai financial market is one of the most relevant choices for entrepreneurs today. The listing process produces a team that has a constant relationship with investors. After the very beginning of the placement of the corporation’s assets for sale, it must present itself for the formation of international relations. Representation in the Dubai market, in...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360