There is new opportunity in obtaining any of a number of offshore, government issued, financial licenses. For years individuals and corporations have banked, set up foundations, and set up corporations to handle offshore assets. Almost exclusively these businesses have been able to do business throughout the world but not in the jurisdiction in which they are licensed. This is no longer true.
Many of the licenses offered in many jurisdictions have been limited in some degree or another. The business of advising others and setting up such entities has typically been limited to citizens of the jurisdictions offering the license. This is also no longer totally true.
Government issued financial licenses are now available for a number of businesses. There is a wide variety of financial opportunity included in these new offerings. With competent counsel, careful planning, and wise use of legal options available in many offshore jurisdictions an individual or corporation can profit nicely with some of the new government issued financial services licenses.
Here we take a look at what types of licenses are available, a bit about how doing business offshore can work, how to go about checking out and/or applying for one or more of the various available licenses and how to move smoothly from application to a fully functional offshore business.
What is Available
Offshore, government issued, licenses are available for accounting services as well a brokerage, consultancy and advisory services for helping other set up offshore banking, foundations, corporations, and more.
Licenses are available for money brokering and money exchange operations. Money lending and pawning operations are now possible through the issuance of offshore licenses.
An international asset protection and management license can be obtained as well as a license for trust formation and management of offshore trusts.
Money transmission services are now possible as an offshore business with a government issued financial license.
A potentially lucrative business providing safe custody services can be started with an offshore, government issued license, and brokerage licenses are available for Forex as well as a wider range of equity and derivative investments.
What is Involved
Each of the licensing examples noted above represent viable business opportunities. Because these businesses will be set up and will operate offshore they will typically be in tax advantaged jurisdictions. Proper forethought and planning for such businesses can allow for maintenance of a maximum of personal and corporate asset protection and privacy. With use of good counsel in the obtaining of an offshore financial license and in structuring the governing entity, typically a corporation, such an operation can be profitable, private, efficient, and not all that time consuming. Using outsourcing operations to reduce business costs will help increase profits and using the correct expertise in computer operations, internet setup, and the like will reduce both cost and time required to run the business.
The types of business vary but the central principles of doing business as an offshore financial entity are financial privacy, personal privacy, potentially very nice profits, and setting up in tax advantaged jurisdictions.
Starting with knowledgeable counsel is very important. Starting up with counsel that is not tied to one offshore jurisdiction is especially important. Not all jurisdictions offer the same licenses and some that do will not always offer the same business potential. There are some offshore locations where you would probably not want to do business. You will be better served by dealing with a trustworthy advisor from the start and avoid mistakes instead of learning by them.
Costs will vary but a typical setup cost, including application is around $27,000. Typical yearly costs, including license renewal, will run around $12,500.
How to Wisely Get an Offshore Financial License
The wise part of getting a government issued offshore financial license is starting with good counsel, not tied to just one offshore jurisdiction. You will want to think through your business plan so that you can discuss what you want to do with your counselor. You will want to get the most exact match between your needs and what various jurisdictions have to offer. When you have sorted out what you need and what is available, and only then, you proceed to getting a license.
In applying for a license for an offshore, government issued financial license all directors, officers, and shareholders of the company will need to provide both personal and financial information. Depending upon whether one holds positions personally or uses nominee directors or officers the application requirements may vary. In addition, in some jurisdictions it is possible for a corporation to set up the business. Having experienced and competent counsel with whom you can communicate clearly in these matters is of utmost importance.
In short, you will want to choose the right help in setting up your business, have a well thought out plan, pick the right offshore jurisdiction. You will want to most efficiently set up the legal framework to take most advantage of tax issues as well as asset and privacy matters as relate to your offshore financial business.
How to Efficiently Operate an Offshore Financial Business
When getting a government issued license for a financial business offshore you will want to think about what business functions you will do which you will buy, outsource, or pay others to carry out. These include management services and qualified nominee services.
An additional job to outsource can be development of a web presence and maintenance of a web site, submissions to directories, blog entries, and more to bring visitors to your site and turn them into customers.
There are various types of banking and financial software that will make running an offshore financial business more efficient and more profitable.
The most efficient structuring of the business will reduce your taxes and help you integrate your offshore financial business with the other advantages offered by offshore jurisdictions. A little forethought, wise counsel, the right offshore choice, and efficient operation can lead to a successful and profitable offshore financial operation with a government issued financial license.