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ADVANTAGES OF OPERATING AN OFFSHORE BANK IN SAINT VINCENT AND THE GRENADINES
- Confidentiality in relation to the incorporation and the conduct of business of an International Banking licencee 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.
When forming offshore banks, they are broken down into two classes, A
& B.
INFORMATION FACT SHEET FOR BANK LICENCE APPLICATION IN ST.
VINCENT
TYPES OF LICENCES
Class 1 – which permits the holder to conduct worldwide banking business
without restriction.
Class 2 – permits the holder to conduct banking business with a group of
named individuals.
DIRECTORS should have strong banking experience, the directors
and shareholders must meet strict due diligence requirements.
Must have one resident director
EMPLOYEES Must have 2 other local employees, at least one of whom
must be familiar with ALL the bank’s operations.
SHAREHOLDERS must have strong financial resources as set out in their
statement on net worth..
SHARE CAPITAL
Class 1 – US $ 1,000,000
Class 2 – US $ 500,000
SECURITY DEPOSIT
Class 1 - US$ 500,000
Class 2 – US$ 100,000
Deposit will be payable a few days before licence is given and must be kept
at the National Commercial Bank (SVG) Limited.
Security deposit could be counted as part of share capital, if properly
structured. It needs not be in cash, but could be held as marketable
securities on a recognised stock exchange.
| Type of Fees |
Class 1 |
Class 2 |
| |
US $ |
US $ |
| Application Fee |
1,000 |
750 |
| Licence Fee |
10,000 |
7,500 |
| Due Diligence
Fee per head |
2,200 |
2,200 |
|
Total Gov’t Fees |
13,200 |
10,450 |
|
Our Fees |
30,000 |
25,000 |
| Total Set Up
Cost |
43,200 |
35,450 |
GENERAL PROCEDURES Business Plan – is very strong and viable
business plan is required.
Due diligence – all share holders and directors should have an
impeccable record.
All bank applications are vetted through the Central Bank being the Eastern
Caribbean Central Bank (see regulators site for details).
TIME SCALE approximately 2 months
for further information.
FIND/BUY RELATED BOOKS!
Whilst every
effort has been made to ensure that the details contained herein are correct and
up-to-date, it does not constitute legal or other professional advice. We do not
accept any responsibility, legal or otherwise, for any errors or omissions.
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