There is an increased tendency to protect property against high tax, against unstable political and economical regimes and against business risks using the offshore structures.

The term of “offshore banks” refers to banks which are located in territories with low tax jurisdiction and which provide plenty of financial advantages for investors. Usually these territories are islands but it’s also a generic term for this type of banks even if the territory where the bank is located is not an island (for example Luxembourg).

 

Most of the countries with low taxes jurisdiction have small territories and low population. Thus, even relatively small amounts of money make a difference. As Guernsey is such an island (belonging to Channel Islands, which are outside the United Kingdom), establishing an offshore banking presence would be profitable for a foreign depositor. Let’s see what should be done for establishing an offshore banking presence in Guernsey.

First, you have to receive approbation from the Guernsey Financial Services Commission and to convince them that your presence on their island is very important because they would give a new license only to the banks which prove that will bring a net benefit to the island and especially to those with an upper international standing.

Secondly, for approvals and other advices regarding Guernsey banks you’ll need the help of some lawyers and accountants. Then, you’ll have to choose if you set up as an administrate bank or as physical presence (usually it is preferred the presence of the administrate banks because of some cost savings as for the space and staff.) Though, there are also disadvantages if you choose to be an administrated bank because for example it could arise competitive conflicts and there won’t be a total secrecy for customers.

As for the license issue (the preliminary approval) you should take care of some items: the name you give at your company, registration, international tax planning, staff recruitment, systems, premises, formal application for the banking license and other administrative details.

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