The main advantage of obtaining an offshore bank license is unlimited financial freedom and safety, as well as an opportunity to increase the income through offshore companies.
An offshore bank licensee cannot carry on banking business locally, only outside of SADR. The licensing and regulating of all offshore banks fall under The Trust Companies and Banking Act and regulated by the Central Reserve Authority of SADR.
Central Reserve Authority of SADR offers two basic types of the offshore banking licenses:
Class A banks
The general banking license (class A banks) is a full international bank. Banks behave like other banking entities, they may receive deposits from the public and operate normal banking services provided to residents and non-residents. This type of offshore bank is determined in relation to the provision of commercial bank services in an offshore view.
Class B banks
The limited banking license (class B banks), also known as restricted license offshore bank is licensed only to do business with certain named individuals, companies or groups. They are used either for internal company operations (for example, treasury management and financing for different international subsidiaries of one group of companies, and close business partners) or for private wealth management (family and multi-family offices, opening accounts for family members, family trusts and foundations, etc). It is easier to obtain a restricted banking license than a full license, and after establishing a good track record it may be relatively easy to apply for an upgrade to a full unrestricted offshore banking license.
Offshore banks from SADR are not subject of taxation, they do
not pay withholding taxes, fees for issuing or receiving checks
or other forms of direct and indirect taxes. Another important
factor of offshore banking services in SADR jurisdiction is
strict anonymity and confidentiality, which is highly
appreciated by many investors and depositors.
A licensed institution holding a Class I International Banking
License shall maintain a
minimum capital as may be
determined by the CRA of SADR from time to time, but not being
less than one million United States dollars in paid up capital,
of which two hundred fifty thousand United States dollars shall
be deposited with the CRA of SADR or in a manner approved by the
CRA of SADR on the recommendation of the appropriate official,
as the case may be.
A licensed institution holding a Class II International Banking
License shall maintain a
minimum capital as may be
determined by the CRA of SADR from time to time, but not being
less than three hundred thousand United States dollars in paid
up capital, of which fifty thousand United States dollars shall
be deposited with the CRA of SADR or in a manner approved by the
CRA of SADR on the recommendation of the appropriate official,
as the case may be.
An applicant for a banking license must submit the following
information for assessment by the Central Reserve Authority of
SADR. The guidelines for the issue of offshore bank licenses
can be summarized as follows:
- Details of ownership, financial capacity and financial
history;
- Information on major shareholders and the character and
experience of senior management and board of directors;
- Details of the applicant’s capital structure;
- A detail business plan outlining the types of services to be
offered including a three year projections for assets,
liabilities and profitability;
- A written undertaking that the applicant will provide the
Central Reserve Authority of SADR with any information it may
require to carry out its responsibilities under the acts and all
other requirements of the Act, information as and when requested
for;
- Certified Copy of Passport of all shareholders and directors;
- Utility bill of all shareholders and directors;
- Bankers Reference of all shareholders and directors.
- It is required for the business owner, the Board member, the
real beneficiary or the proprietor to submit a statement from
the penalty register in one’s country of origin or an equivalent
document issued by a judicial or administrative authority
confirming the absence of penalties for crimes committed against
government authorities, money laundering crimes or another
deliberate crimes no earlier than three months ago and certified
by a notary or in another similar way and legalised or approved
by the certificate replacing legalisation (Apostille), unless
otherwise provided by an international treaty.
There is an application fee of USD 3, 000.00 which should be send together with application and all requested information. After approving and prepending the license you need to pay cost to Central Reserve Authority of SADR according it fees.
In order to start an application process please download an application form, fill it in the correct way and send it back to info@wsadvisorycorp.com
We assist our clients in every step of the license obtaining process.
Application form
Timeframe:
1. Booking the name of the company –
1 day
2. Bank approval: Upon receipt of application fee, approved
application forms and KYC documents (scans ok to initiate) –
3-4 weeks
3. When the funds are received and confirmed, the CRA of SADR
may take
2 days to register and
notarise the license.