Jurisdictions are hard to create brokerage houses, banks, and offshore trusts so what do you do?
So, what is an entrepreneurial international financial services company to do?
You have probably looked at making New Zealand Financial Service Providers, FSPs, Cayman Brokerage Houses, Anjouan Banks, Seychelles Banks, Mauritius Brokerage Licenses, Belize Brokerage licenses, and all kinds of various license.
If you have been watching the recent crack down on brokerage houses in Belize, Bahamas, Cayman, it is no longer safe to be the owner or build a brokerage house in these jurisdictions.
One can always get a full offshore bank license in an international jurisdiction, such as Anjouan or Panama. Even South Africa or Ghana, but if you don’t have the $10m to $20m in corporate capital required, I suggest you consider simpler options for setting up deposit taking entities, offering investment services, providing for Forex trading, etc.
Clearly reputable jurisdictions matter, therefore, Sweden and New Zealand appear to be the two most popular.
Some possibilities are the Swedish Credit Union, not a Panama Offshore Financial Company, a Swedish Trust Company, a New Zealand Offshore Financial Company, a master/feeder fund in Cayman or BVI, or a Swiss Trust Company although Swiss Trust Companies are going the way of Belize and other offshore markets.
You should be careful of the people selling the Panama offshore companies, most of these Panama offshore companies are actually just normal companies with no regulatory or registered office that handles their “legal status” in the financial sector. For the most part these Panama financial companies and Panama credit card companies are nothing but normal companies where the incorporator wrote into the section that says “explain your business” on the license and they write “financial company, credit card company, broker, custodian, etc” but they are not licensed to do so. Since the Panama jurisdictions call the Business License a license, they trick unsuspecting people into believing the “Panama License” is an actual financial services company license, when all it is is a $500 business license. I definitely don’t recommend working with any of these global money experts who sell these types of services because they are not actually licensed by the financial authorities within Panama. They claim it offer services such as “payment processing, credit card management, the trading of metals, leasing, factoring, etc.” but its just that, services offered that they get a business license for but do not go through the proper channels within Panama. Avoid this scam. These companies can’t take deposits or operate like a bank.
New Zealand is a favoured jurisdiction, where by a New Zealand Offshore Financial Company can provide “Bank” type services for individuals and corporations worldwide without limitations on the number of clients, deposit amounts or currency. A NZOFC may engage in the following businesses, but may not use the word “Bank” in its name. It is the entity most similar to an offshore bank license. The cost is only $50,000 USD and takes 3 months.
-Deposit taking & lending
-Debit and credit services
-Issuing of financial guarantees and instruments
-Issuing of CDs
-Wire transfer services
-Marketing of investments
The Swedish Trust Company -The Legal Structure
The Trust Company is structured as a Limited Partnership and registered in Sweden, a full member of the European Union. In addition to registration in the Swedish Company registry, Trust Companies are also subject to registration as Regulated Service Providers in accordance with the Money Laundering and Terrorist Financing Prevention Act (Law 62:2009). Our Trust Companies come complete with Certificates of Registration evidencing compliance with this Act. All documentation is provided in Swedish and English with Apostille legalization. The Trust Company can manage any type of asset held in Trust for any number of clients (individuals or legal entities) resident anywhere in the world. The Trust Company must have a minimum of one partner with unlimited liability, and a minimum of one partner with liability limited to the investment in the company. Amounts invested are not required to be paid up.Partners can be physical individuals or legal entities of any nationality and resident anywhere in the world. Our firm can also provide nominee partners and issue General Power of Attorney if required.
The Trust Assets
There are no limitations on the types of assets that can be placed under management by a Trust Company. Assets can include but are not limited to:
- Cash Deposits (No Currency Restrictions)
• Mutual Funds
• Hedge Funds
• Any type of Securities
• Precious Metals
• Real Estate
• Investments in General
The Swedish Trust Company is probably one of your best potential structures at the moment. The cost of 24,000 euro, it is cheaper than the New Zealand FSP and is based out of Europe.
If you are interested in building a Swedish Trust, contact
USA +1 914 613 3007
Sweden +46 08 559 22 887