Offshore Bank License

Under the Offshore Banking Act of 1996, companies and individuals can form and operate private offshore banks in Dominica once the prescribed requirements are met. Here you will find full details, the requirements and the conditions for licensing of an offshore financial institution in Dominica.

Offshore Bank Formation — Main Reasons

Offshore banking is a legitimate financial exercise undertaken by growing numbers of individuals and corporate bodies as a means to achieve financial stability and security, and financial freedom. Many individuals and corporations realize the advantages gained by owning their own offshore banks. The greater benefit is to the Offshore Bank Licensee who now has the power to gain unlimited financial freedom and security, open up opportunities for capital gains through a legal offshore enterprise. An investor seeking a license to operate a (Dominica) offshore bank normally is looking for a return on his investment through tax planning, safety of funds, performance maximization and asset protection through the use of that offshore bank facility. All these objectives are met through a Dominica Offshore bank. Onshore tax planning and asset protection measures are inefficient if compared to using your own offshore bank. Typical shareholders’ objectives for an offshore bank 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 100% fund safety and enhance the performance of the investment through your own bank;
  • To provide asset protection through the use of offshore bank accounts.

In the financial and business world there is nothing more reliable and respectable than to own your own bank in a good jurisdiction. Offshore banks can also be registered as private ventures even though a shareholder is a corporate body or individual with interest in another company.

Offshore Bank Formation Services

Offshore bank formation is one of the business services we offer in Dominica. We provide local agent services during the offshore bank formation. We will attend all your needs during the offshore bank formation process in Dominica.

Offshore Bank Formation — Why in Dominica

Dominica is a respectable offshore jurisdiction, and its banking legislation is based on the Offshore Banking Act 1996 and Offshore Banking (Amendment) Act 1997.
Just as an introduction to this issue we would like to highlight the differences between onshore and offshore banks in Dominica. An onshore (ordinary) bank can provide all types of banking services without restrictions to local residents (corporate bodies or individuals) or to foreigners. Offshore banks in Dominica can provide a wide spectrum of services (Dominica issues bank license type “A”), but it cannot provide its services to Dominican residents or companies. An onshore bank has to pay income taxes just like any other ordinary Dominican company but an offshore bank is exempted from all taxes except the annual licensing fee.

Forming an offshore bank in Dominica will allow you to perform all types of legal banking operations for foreign companies or foreign individuals, even for the IBCs registered in Dominica.
The formation of an offshore bank in Dominica can be completed within six months. Under the law, you are permitted (and encouraged) to establish a main office of the bank in Dominica. The local infrastructure (communications system) is modern and very up to date competing with first world technology with several local and international companies offering services in Dominica.

Minimum Share Capital requirement for the bank is US$ 1,000,000. There is practically no limitation in regards with the name choice, with the exception of the word “Royal”. Dominica offers you a unique opportunity to obtain both offshore and onshore licenses. This way, you can provide services for non-residents and residents of Dominica (the population of the island is nearly 75,000 plus tourists). You will have to keep separate books in order to pay income tax from the services provided to the residents of Dominica. But this will help you to establish correspondence relations with the big banks more easily, and it will also speed up your application to issue your own Visa and/or MasterCard. Dominica has branches of the following banks with onshore licenses: National Bank of Dominica and Agricultural Industrial Development Bank, The First Caribbean International Bank (formally Barclays Bank PLC), Royal Bank of Canada (Canada) and Bank of Nova Scotia (Canada).

Offshore Bank LICENSES: Requirements, Procedure and Prices

The license application process normally takes six months after you have presented all the required documents to the Government. The documents are very similar to the ones required for the application for citizenship; this is one of the reasons why we recommend that you apply for both simultaneously. We can provide you with the list of documents required upon your request. Please also bear in mind that you have to have a due-diligence and Interpol check done on you by an independent agency approved by the Government of Dominica. It normally takes approximately thirty days, but can take longer than that, depending upon the countries where such checks are performed. In order to submit the application you need to:

  • Register a company and apply for the offshore or offshore/onshore banking license for this company, through the registered agent (We at “CCP Inc” provide this service).
  • Have a registered agent representation during the whole term of operation of the financial institution (CCP provides this service).
  • Have a representative office, but you can always have a main office in Dominica.
  • Have paid up Share Capital in the amount of not less than USD 1,000,000.
  • Have a reserve in Government Bonds USD 150,000 (possible from your share capital) for the whole period of operation.
  • Pay an annual license fee of USD 8,000 for the offshore license by the 15th of January of every year.
  • Provide annual audited statements conducted by a local or internationally recognized auditing company to the Government of Dominica

CCP Inc.’s fee for services rendered in respect of the incorporation of the company, processing of the application for the license and the first year’s fee for the registered agent services is USD 25,000. Due diligence fees are not included as they can vary. Each subsequent year, fee for registered agent services is USD 8,000 prorated quarterly.

Costs of Forming Own Offshore Bank

Formation of Offshore Bank with the application fees, Government Offshore Banking License fees, and registered agent’s services for the first year is USD 33,000. (License fee — $8,000 + CCP fee — $25,000). From the second year and each subsequent year the cost is USD 16,000. (License fee $8,000 + CCP fee $8,000).

Pay attention that due-diligence costs are not shown above and not included. We cannot give the exact amount as it varies from case to case. It usually varies from USD 4,000 to USD 10,000 for each director and shareholder. But it can exceed this amount. The cost depends upon the applicant’s age, the country of present citizenship and permanent residence, how often he (she) changed residency and the country of their last residence.

Don’t hesitate to contact our office if you require additional information. We will be pleased to answer all your questions.

Contact us to Form Offshore Bank Today