With stringent rules on bank licenses such as strict capitalization rules, due diligence procedures, and relevant experience requirements being the order of the day, setting up an offshore bank can be daunting. However, alternative offshore financial structures present an appealing route due to their flexibility, relative ease of establishment, and broad service offerings. They provide an array of services like deposit taking, payment processing, and even investing, brokerage, and forex trading.

Offshore financial companies offer an excellent avenue for service providers interested in facilitating loans to individuals or corporations, trading in stocks or bonds, or security investments. Unlike an offshore banking institution, these non-bank financial structures do not have to adhere to all the regulatory mechanisms, thanks to supportive financial regulatory environments in offshore jurisdictions.

Over the past decade, the offshore banking formation industry has faced increased scrutiny and oversight from various global regulators. With this changing landscape and rigid banking requirements, the prospect of incorporating a financial company becomes increasingly appealing. Additionally, like many corporations, financial companies enjoy taxation benefits and pay no taxation on capital gains. In essence, financial licensed companies reap the best of both worlds.

An offshore financial company, also known as an international financial company, is an entity that engages in various offshore financial services and activities. It can act as an investment entity akin to an offshore brokerage account, perform payment processing duties similar to an offshore merchant account, and provide asset protection capability characteristic of an offshore company.

The purposes of an offshore financial company depend largely on the jurisdiction in which it operates. It can engage in numerous activities, from investing, holding, and payment processing, to handling e-commerce, e-currency, and e-trading.

Popular uses of a financial company include:

• Regional or global investing
• Issuing and underwriting securities
• Asset and fund management
• Providing financial advisory services
• Opening an offshore bank account
• Trading, holding, and transferring via online financial platforms
• Managing funds in an offshore jurisdiction
• Opening currency and forex trading accounts
• Opening Bitcoin accounts
• Accepting payments from third parties
• Foreign currency payment processing

While these companies are granted broad financial activity privileges, not all licenses cover all activities. It’s therefore essential to identify the core financial services intended to be offered before establishing an offshore financial company.

An offshore financial service provider typically manages third-party funds, which can be deployed in various investment, insurance, or forex trading operations. They are non-bank entities that act as financial intermediaries and manage third-party capital.

The services offered by such providers depend on the client’s needs, ranging from investments and foreign exchange to bond or securities trading, remittances, or pre-paid debit card transactions. Each offshore jurisdiction has its unique regulations and laws governing these financial entities, limiting them from conducting certain types of financial activities without proper licenses.

An International Financial Company is an offshore structure that can function both as an offshore brokerage account and a lending institution, amongst other financial services, without the need for a traditional banking license. Such structures offer a versatile solution for those looking to engage in financial services offshore.

While there are a number of financial companies and a host of jurisdictions to choose from; we have come up with a shortened list that offer the best opportunities with the least amount of red-tape.

These companies enable you set up electronic payment services with merchant account and e-money wallet services as well as acting like a investment brokerage account where you can hold and trade securities, bonds and deal in forex currencies.

• Electronic Payment Services
  • Establish a Merchant account and take credit card payments from anywhere in the world straight into your offshore account.
• E-Money Wallet
  • Digital e-currency that allows for deposits, payments and transfers online using software allowing you to hold and use funds like a bank account.
• Forex License
  • Trade global currencies through a currency exchange on an online trading platform.
• Brokerage Account
  • Hold and trade mutual and index funds, securities, as well as currencies and other investment products.

Private Wolf is the world’s most trusted offshore services provider. Our team has helped successful investors and entrepreneurs reduce their tax bills, protect their assets and maximize their freedom for over 22 years.

Our holistic approach combines expert legal advice with innovative solutions that enable our clients to offshore their business and protect their assets.