If you’re thinking about creating your own financial institution, getting an offshore banking license is essential in 2025. But, it is much more than just a legal requirement. With the right structure and jurisdiction, your offshore bank can operate globally, enjoy tax advantages, and give you the credibility and freedom that only a licensed financial institution provides.
This guide is here to walk you through everything, from the types of offshore bank licenses to the jurisdictions that are most welcoming in 2025. And the best part? We handle it all for you, from applications to ongoing guidance.
What Is an Offshore Banking License?
An offshore banking license allows you to conduct banking operations outside your country of residence. There are different types of bank licenses, but generally, a banking license allows you to provide financial services. These services may include taking deposits, issuing credit cards, managing investments, and more, depending on the license type.
If you hold such a license, you have access to international financial markets, asset protection, and often generous tax benefits. What’s more, many countries that offer offshore bank licenses also prioritize client privacy, giving you a secure foundation to operate your financial operations. This is essential in the current climate.
Types of Offshore Banking Licenses
Before starting the licensing procedure, you need to understand what type of license suits your business model. Generally, there are two main types of bank licenses:
General Banking License (Class A)
A general bank license, sometimes called a general license, allows the holder to operate a full-service international bank. You can take deposits, issue loans, offer credit cards, and manage global client accounts. These are commonly referred to as full licenses and provide the broadest range of banking activities.
Restrictive Banking License (Class B)
A restrictive bank license, also commonly referred to as a Class B license or restricted bank license, limits the possibility of doing business, but it is a bank license which allows certain activities. It typically restricts services to specific clients, like non-residents, or to internal operations such as treasury management. These licenses are easier to obtain and are often ideal for family offices or financial holding companies. They also limit the possibility of providing bank services to the general public.
In short, the type of offshore bank you need depends on your goals. We’ll help you choose and apply for the right one.
Benefits of an Offshore Banking License
What is important to know is that these licenses don’t just give you the means to conduct banking. In fact, there are numerous benefits for investors and international businesses who have an offshore banking license. The scope of the benefits may vary depending on the jurisdictions. However, we typically recommend jurisdictions that are ideal for you. These advantages are:
- Tax Efficiency: If you get a bank license in the top locations, you will face minimal to no taxation.
- Asset Protection: Having an offshore bank license in favorable jurisdictions typically provides you with strong legal protections, more so than in local ones.
- Global Access: If you have a properly licensed offshore bank, you can provide services to international clients and participate in the global financial ecosystem.
- Reputation: A bank license demonstrates to your clients and partners that you’re credible and trustworthy.
- Operational Freedom: Offshore jurisdictions typically have fewer bureaucratic hurdles, streamlining your operations.
- Client Privacy: You are protected by strong data protection laws and banking secrecy in many jurisdictions.
Why Choose an Offshore Banking License?
Owning an offshore banking license is perfect if your business involves:
- International Transactions: Having an offshore bank license is great for cross-border deals and payments.
- Digital Banking: If you’re running a fintech or crypto-related company, offshore bank licenses provide the right flexibility.
- Family Offices and Wealth Management: A restricted bank license is ideal for managing intergenerational wealth privately.
If you’re not sure which direction to take, our experts are here to guide you. You don’t have to make this decision alone. We evaluate your plans and guide you to the best offshore solution.
How to Get an Offshore Banking License
While processes can vary, there are some general steps you will need to follow before you obtain an offshore banking license. However, we are here to manage every step for you. Here’s what to prepare for:
Step 1: Choose the Right Jurisdiction
First of all, we will help you choose a country that provides the right infrastructure, tax laws, and stability. Some countries offer fast-track options; others offer lower capital requirements. We’ll help you compare and pick what fits your business best.
Step 2: Prepare the Documents
The required documents will include a full business plan, KYC profiles, financial references, resumes, police clearance certificates, and proof of paid-in capital. You also need to show the types of banking and bank services you plan to offer.
Step 3: Submit the Application
We handle the full application process, preparing and checking forms, submitting them to the regulator, and answering follow-up questions. We help minimize delays and ensure compliance
Step 4: Wait for Approval
The licensing procedure takes 2–9 months, depending on the jurisdiction and the type of offshore bank. We are with you through every stage until your banking license allows you to legally operate a bank.
Costs of Obtaining an Offshore Banking License
There’s no set cost, due to the range of options available. However, we can explain to you what to expect in a free consultation. While these costs vary, here’s a typical breakdown of what you will need to pay:
- Initial Setup: This includes legal support, regulator filing fees, and paid-in capital (the amount depends on jurisdiction).
- Annual Fee: You’ll also have to pay a recurring annual fee for maintaining the license.
- Compliance Costs: These cover audits, reporting obligations, and staff salaries.
While an offshore banking license costs more upfront than a domestic license, you often save long-term due to tax savings and fewer operating restrictions.
Top Jurisdictions for Offshore Banking Licenses in 2025
Here are two of the best locations to get started, as they offer the most favorable environments.
Dominica
Over the years, Dominica has become one of the most attractive jurisdictions for offshore banking in the Caribbean. It is governed by the Eastern Caribbean Central Bank (ECCB) and supported by the Financial Services Unit (FSU). Dominica offers both international and domestic licenses under a robust legal framework. The regulatory clarity of the island is combined with significant tax advantages. Such exemptions include those from capital gains and estate taxes.
One crucial advantage is that the Dominica offshore banking license is internationally recognized. This recognition makes it a valuable asset for building global banking relationships and enhancing your institution’s credibility.
What is also beneficial is the flexibility, which can appeal to a range of different types of financial services. For example, whether you are focusing on retail services or digital and crypto banking, you can enjoy Dominica’s regulatory flexibility to tailor services to your business model.
Banks must maintain a minimum capital of $1 million, comply with KYC and AML regulations, appoint approved directors, and practice comprehensive due diligence regarding beneficiaries. You must provide documentation, including the application form, business plan, financial statements (past three years), affidavit of source of funds and for directors and shareholders, police certificates and character references.
The setup process includes:
- Incorporating an entity locally, with a local office and staff.
- Preparing detailed business documentation
- Implement the EBANQ Core Banking system and cybersecurity
- Undergoing rigorous due diligence regarding KYC/AML.
- Setting up core banking infrastructure.
- Establishing bank correspondence
From incorporation to client onboarding, the full launch process typically spans 12–18 months. Total costs are approximately 100,000 USD. We offer a full turnkey solution to simplify every stage of the process, from entity registration to ongoing compliance.
Comoros
Comoros, located near the coast of East Africa, is an option that provides you with a cost-effective and confidential solution for offshore banking. The jurisdiction is governed by the Banking Law of 2013 and regulated primarily by the Anjouan Offshore Finance Authority. It provides Class A (general) and Class B (restricted) banking licenses under a pro-business legal system. The island’s lack of currency controls, no corporate or capital gains tax on income generated abroad, and confidentiality protections make it particularly attractive.
Setting up a bank in Comoros involves:
- Meeting basic regulatory standards
- Submitting a strong business plan
- Passing due diligence
- Appointing qualified directors.
Companies are not personally liable for corporate debts, and capital proof can be provided through fiat or crypto assets.
The license permits a broad range of activities, including accepting deposits, issuing credit cards, conducting FX and securities operations, and providing guarantee services.
Registration and licensing fees are significantly lower than in other jurisdictions— 11,750 EUR for registration and 69,000 EUR or 49,000 EUR for licenses, respectively. License approval typically takes a minimum of 20 working days.
With our support, you can set up a fully licensed bank in Comoros. This bank will comply with AML/KYC regulations and will enjoy long-term financial benefits. We guide you through every step—from name reservation to regulatory correspondence—to ensure a smooth launch and continued success.
Legal and Compliance Considerations
A successful offshore banking license application must comply with:
- Know Your Customer (KYC): Detailed background checks on clients.
- Anti-Money Laundering (AML): Robust internal systems to detect illegal financial activity.
- Data Protection Laws: Vary by jurisdiction, but most protect customer data and maintain confidentiality.
Challenges in Obtaining an Offshore Banking License
Setting up a bank isn’t easy, but we take care of the hard parts for you. Still, it helps to know what can go wrong:
- Regulatory Complexity: Each country has its own rules. We help you navigate them.
- Political Risk: We avoid unstable jurisdictions.
- Banking Access: We help establish correspondent accounts to ensure you can send and receive funds globally.
Future of Offshore Banking Licenses
The realm of offshore banking is evolving very fast:
- Digital and Crypto Banks: New types of banking entities are emerging, including those tailored for digital assets.
- Stricter Oversight: The central bank in every jurisdiction is increasing scrutiny, making our expert guidance even more important.
Conclusion: Start Your Offshore Bank with Confidence
Now you understand what it takes to obtain an offshore banking license in 2025. But you don’t have to go through the process alone. We:
- Help you choose the best offshore jurisdiction
- Handle the licensing procedure from A to Z
- Ensure your bank is operated legally and compliantly
- Prepare all documentation and business plans
- Provide follow-up support after licensing
An offshore banking license unlocks global possibilities—but only if you get it right. Contact us today for a free consultation, and let us build your future offshore bank together.
05 June 2025 