APGI - Offshore Bank License

Offshore Bank License

ADVANTAGES OF OPERATING AN OFFSHORE BANK IN SAINT VINCENT AND THE GRENADINES

We offer our clients the opportunity to establish an offshore bank in St. Vincent and the Grenadines. For individuals and companies looking to expand their business or who are in need of establishing an offshore bank we offer a complete service which includes the establishment of a St. Vincent banking license. We will assist all interested parties in obtaining the proper licenses in order to operate an offshore bank in this jurisdiction. We do however require a US$1500 non-refundable retainer for this service. This amount will be deducted from the final fees due to us upon undergoing the licensing process.

Typical objectives for obtaining an offshore banking license are as following:

• To optimize payments.
• To improve tax planning opportunities.
• To avoid excessive regulations of banking activities from National or Central Banks of different countries.
• To provide safety of funds and enhance the performance of the investment through your own offshore bank.
• Safety of funds and the performance of the investment through your own bank.
• To provide asset protection through the use of offshore bank accounts.

By owning your own offshore bank you can legally engage in activities not available to many onshore banks, such as:

• Take deposits and make loans worldwide (including back-to-back loans).
• Offer payment services.
• Issue payment tools such as credit/debit/cash cards.
• Service the growing global business based offshore using the internet.
• Issue bank guarantees.
• Issue letters of credit.
• Offer global internet banking.
• Issue your own bank instruments (e.g. bonds & securities) .
• Issue bank references.
• Place funding offshore through your own bank.
• Structure an offshore loan system from your offshore bank.
• Own your onshore business assets by your offshore bank (asset protection).

The tax planning and asset protection measures using your offshore bank may be far superior to those available onshore. In addition, you can service your onshore clients via your offshore bank thus easing the regulatory stronghold in which you may currently experience. Your own offshore bank presents you with opportunities for profit and tax savings not otherwise available to you.

Confidentiality in relation to the incorporation and the conduct of business of an International Banking licensee has been preserved by the Confidential Relationships Preservation (International Finance) Act, 1996 and by the International Banks Act 1996.

• No exchange control restrictions applicable to offshore transactions.
No stamp duties of any kind on any transactions.
• No corporation tax, no income tax, no withholding tax, no capital gains tax.
• No estate, inheritance, succession duties.
• Political independence and stability.
• Skilled work force.
• Duty free importation of equipment and fixtures for use in offshore banking business.
• Excellent International Banking Laws.
• Excellent telecommunications.
• Trained Lawyers, Bankers, Accountants.
• Low crime rate.
• Conducive natural environment.

CLASSES OF LICENSE:

The following are the licenses which are issued under the International Banks Act 1996:

• A Class I Offshore Banking License entitles the Licensee to engage in offshore banking generally outside the country.
• A Class II Offshore Banking License entitles the Licensee to engage in offshore banking with persons named, or groups specifically described in a written undertaking.

REQUIREMENTS:

Local domestic company or an International Business Company (IBC) must be incorporated under the laws of the State of Saint Vincent and the Grenadines.

The prescribed minimum capital requirement for a class 1 license is US$500,000.00 and for a class 2 license is US $100,000.00.

There must be at least two directors, one of whom must be a resident. The directors are required to be natural persons.

A principal office and place of business in the State.

A registered agent who must be resident within the state and who must not be the resident director.

A class 1 license applicant must deposit US $100,000.00 cash or purchase Government or securities of equal value.

A class 2 license applicant must deposit US $50,000.00 cash or purchase government bonds or securities of equal value.

Application fees are US $1,000.00 for Class 1 license and US $750.00 for Class 2 license.

Narrative description of principal's experience in banking business and character references together with other such particulars as may be prescribed.

Indemnity insurance coverage may be required based upon the nature and type of the business to be carried on by the licensee.

FEES:

License Fees:

(i) Class I License - US$37,500.00

(ii) Class II License - US$37,500.00

Annual License Fees:

(i) Class I License - US$5,000.00

(ii) Class II License - US$5,00.00