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Start a Bank
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|Start your own bank by owning an offshore financial institution, your own finance company which affords you the ability to start a bank that you own and control. Starting a bank is a complex and intricate journey that can take a lot of money and a lot of time. Being your own bank requires investors and levels of expertise to meet the requirements. You can open your own financial institution and be your own bank quickly through an offshore solution.|
Start Your Own Bank
We formalize a company that is a registered financial institution. Once established your company can legally transact all banking and financial services to any type of customer, private, individual or commercial. Start your own bank. A bank is defined as: “… an institution for receiving, lending, exchanging, and safeguarding money and, in some cases, issuing notes and transacting other financial business.” and “… a financial institution that accepts deposits and channels the money into lending activities.” so the concept of being your own bank means that your organization performs these types of transactions. Starting your own bank essentially means formalizing the legal entities and operational levels to facilitate financial activities that define, “being a bank”. So how does one become their own bank and officially open a financial institution that operates as your own bank? Below you can find how the program works and what is included in starting your own bank through Offshore Company.com
- We form your finance company that you own which operates as your bank, legally. This type of legal entity is entitled to operate and perform transactions governed by many Acts, however not regulated by Central Bank supervision.
- We form an additional legal entity that will be a holding company for inbound wire transfers. Depending on where you select your deposit account to be opened, you are restricted to deposit taking from a limited number of accounts, so your holding company will receive inbound deposits from an unlimited number of accounts and bulk transfer those into your primary deposit account.
- We will provide registered agent and resident office services for you. This means that your legal entity has an office location, phone number and mailing address within the jurisdiction it is formed in. Your bank must have several of these formalities which we assist you with as part of our service.
- We will perform all of the necessary government filings so that your companies are formalized, registered and permitted to operate as your own bank. All of these legal document filings and recordings are included.
- We will register your bank’s securities. Any type of security that you wish to issue after you open your own bank requires registration for each one. This includes Term Deposits, Checking Accounts, Savings Accounts, etc. What this means is that your bank can pay interest to customers minus the deduction of withholding tax, without disclosure to a revenue department. Essentially you don’t have to report who you paid the interest to, just that it has been paid.
- We will ensure that your own bank is a registered issuer and manage your bank’s status. This allows your bank to issue securities such as Term Deposits and Savings Accounts.
- Assistance with private label debit cards and all third-party issuing.
- Assistance with online banking software and account management systems.
What You Can Do When You Start a Bank
When you open your own finance company and operate it as your own bank, you can perform virtually every single type of transaction that any other bank can legally perform. Below is a simple list of common bank transactions that you can benefit from as your own bank.
- Deposit taking & lending
- Debit and credit card services
- Issuing of financial guarantees and instruments
- Cash management services
- Current accounts
- Checking accounts
- Savings accounts
- Term deposits
- Issuing of CDs
- Wire transfer services
- Payment processing services
- Fund management
- Marketing of investments
What You Can’t Do When You Start Your Own Bank
The only thing you are prohibited from doing exactly as a bank is, using the word “bank” in the name of your finance company. It’s a reserved term for chartered financial institutions. You can use any other related word in the legal name of your own finance company.
Additional Banking Information
Your bank will be issued a tax filing number that allows your finance company to comply with all tax requirements. After you open a finance company, you will have to comply with local tax law which includes completion and filing of Income Tax Returns and Approved Issuer Levy returns (which is done for you as part of our service). Your bank will have to be in compliance with the Financial Transactions Reporting Act 1996 and the Proceeds of Crime Act 1991 that consists of a check of client ID’s, your record keeping and transaction reporting system. The Companies Act 1993 requires that you appoint a qualified auditor and local qualified accountant.
Starting your own bank sounds complicated, but our service performs all of the legal organization and document filing support so you can start your own bank quickly and worry free. Everything is included right down to the making sure your finance company is compliant with all Acts which means; your accounting and records system is reviewed, as well as financial statements approved and readily audited.
How Your Own Bank Receives Money
Your primary deposit account will receive a wire transfer deposit of the sum of your inbound wire transfers that your finance company receives on a flow basis through your holding company. The diagram below shows how this works from the depositors to your bank deposit account.