Planning to start a bank?

[id62000]

For starting a normal bank, basically a huge capital is needed.
For eg. In India it's estimated to be a minimum of Rupees 6 Crores.
Getting a license is easy, once you have enough money, you can get it done through agents. The next step would be to register with the RBI (Reserve Bank of India), and it would be necessary taht you deposite the 6 crores in RBI under the name of your bank.
With this, basically you own a bank in India. In each district you're setting out an outlet, you need to get the registration again done, again through agents.
Well, basically, you won't be able to touch the 6 crores again, so you'll need extra funds to start business, getting people to deposit, finding the right people to lend it to etc.
Whatever money you get, about 5-10% should be put away in forms like gold, etc. The rest should be for loan and other purposes. Only 5% should be invested in stocks and stuff.

As for employees, usually a private bank does not directly employ people, mainly because if a bank has more than 30 direct employees, they need to be given permanent jobs. And this will give rise to troubles in the future.
So, most of the work in a pvt bank is done through agents.

Setting up a bank is easy once you have the capital and influence, but maintaining it should be done carefully. Customers should be carefully picked.

[peteri]

to start a bank you need 5mln EURO and that is the truth

[Offshore]

A payment processor and a bank are different licenses. A banking license in a serious jurisdictions requires reserve capital and that the "bankers" have prior banking experience.
It involves an application process that can take as long as 6 months up to a little over a year a half. The legal fees could likely reach $100,000. You would need to build offices, hire tellers, and etc. You might also have to pay $200,000 dollars a year to have a good correspondent bank. Don´t forget SWIFT relationships with other banks to effect transfers. For example, A complete Panama Banking License requires a $10,000,000 cash deposit. A Panama Offshore Banking License requires a $3,000,000 cash deposit. They are very rigorous when it comes to banking.
A financial company is not a bank in jurisdictions like NZ and Sweden and even thought you can accept deposits from clients, where do keep the money? At another bank.
You cannot find a correspondent bank that is willing to work with you if you don't have any physical office addresses and actual employees.
Ask a Swedish or NZ company for wiring instructions to see their bank relationships.
You need to consider this if you are going to be able to conduct international banking activities because the other banks around the world would probably refuse to deal with you. Getting correspondent banks in other countries would be tricky. In cases of financial licenses for "credit unions" or Swedish and NZ companies, you would not be able to operate in the country that issued the license since it would be an offshore only financial (not banking) license restricting you to activities outside of the country.
In some countries they are also prohibited from conducting business with any corporation or trust formed in that country as well. They give you a financial license (not a banking license) but they don´t allow you to conduct banking with their own citizens. Wise.
Belize does not have any banking secrecy laws written in statues. Switzerland has modified their laws to suit the EU. Many of the Caribbean island offshore banking jurisdictions have given in to EU and American pressure. Yes planning is a must.

[Offshore]

This is a very good one, you will need a location in Barbados

In order to engage in offshore banking in Barbados, the interested party must apply for a license from the Minister of Finance. Such a license will only be issued to an eligible company or to a qualified foreign bank.

Regulations and Requirements
An eligible company must be incorporated under the Companies Act and restrict its activity to offshore banking from within Barbados. At least one of its directors must be a resident of Barbados. All applications are subject to stringent standards of investigation in order to limit activities to only those with first class credentials.

Minimum capital requirements for non-residents are BDS$1,000,000 (one million) which must be paid up in cash. For residents, the capital requirements are smaller at BDS $250,000 (two hundred and fifty thousand).

[Offshore]

If you are a bank you have to deal with other banks, if that´s the question. A US bank and offshore banks have clients in common. Not all users of offshore banking are dodging taxes. There´s a lot of legal commercial activity going on than anything else. Besides there are a lot of international breaks corporations get from governments when they move certain activities out of the mainland.

[Offshore]

Originally Posted by Bugatti

I paying taxes and I ve got to know!!!

If you are from the US, you don´t have to look too far: US Virgin Islands

1. There are three types of entities that can be established in the USVI which are either fully or partially exempt from USVI taxes and U.S. federal income taxes. One type of entity is a USVI Corporation
2. These companies are fully exempt from most local taxes and receive a 90% exemption from USVI income taxes.
3. Another tax free entity is a USVI foreign sales corporation. Thousands of USVI FSCs have been set up by U.S. exporters as a means to reduce U.S. federal income taxes on their export sales by about 15%.
4.USVI exempt companies are commonly used as holding companies for portfolio investments, for the ownership of aircraft that are registered with the FAA, or as captive insurance companies.
This program was established by Congress in 1984. More Sales corporations have been established in the U.S. Virgin Islands than in any other jurisdiction in the world. It keeps people from going offshore and keeps them in US jurisdiction for protection.
licensed USVI management companies generally have offices in the United States mainland as well. So no, they don´t have to live in the Virgin islands.
The USVI Corporation can repatriate income back to its parent corporation in US without paying corporate taxes.
The USVI redomiciliation statute can be used to move a tax-free company from another jurisdiction into the USVI.
For foreign persons, even more generous exemptions are available through the use of the third type of tax-free entity: a USVI exempt company.
The USVI is the only jurisdiction in the world where a non-U.S. person can establish a tax-free entity under the U.S. flag. Can you imagine the kind of business banks there rack up?

[Offshore]

The Banking Act 1975 governs banking business in Nauru and provides far two types of licenses, namely - resident and non-resident. Licenses are renewable annually. A resident license permits the bank to carry on a banking business within The Republic Of Nauru, whereas a non-resident license allows the bank to carry on a banking business outside Nauru. The capital requirements for an in-house bank are low - USD 100,000 - and the time scale is in the order of one to three months. Nauru has no taxes on all types of income.