Jilian Consultants Co., Ltd.
Jilian Consultants Co., Ltd.

How to Apply for an Overseas Financial License?

How to apply for an overseas financial license? For example, if you want to apply for an MSB digital currency license in the United States, or apply for other overseas financial licenses, do you want to know where to apply for an overseas financial license? The following is a brief introduction to the basic process of applying for an overseas financial license.

1. Offshore supervision of overseas financial licenses

The offshore regulatory licensing process is fast (usually several months, depending on the regulatory jurisdiction), with lower overhead and operating costs. One reason is that most jurisdictions do not require a physical presence in terms of office space, company directors and shareholders.

In most cases, due diligence/suitability requirements for companies, directors and shareholders are fairly straightforward.

Compared to full regulation, offshore regulation has very limited reporting requirements for licensees, most of which are related to capital adequacy and financial standing. In terms of taxation, most offshore regulated income tax payments have very little or no requirements.

In addition, most offshore regulations do not require that financial services must be provided in their jurisdiction, nor do they require that services be provided only to local residents. In terms of audit requirements, most regulations require licensees to provide annual financial reports (monthly and quarterly in some regions).

2. Full supervision of overseas financial licenses

There are more requirements for full regulation, which is reflected in several aspects: for example, administrative fees (application fee, activation fee, annual fee, etc.) are significantly higher than offshore regulation, and the same is true in terms of minimum capital requirements. More lengthy procedures for suitability requirements for companies, directors and shareholders.

In many cases, in addition to copies of passports, CVs, copies of academic and professional qualifications, and recent bills, full regulation may also require proof of business existence, proof of criminal record, proof of non-bankruptcy, and current tax returns. Full regulation requires company premises and company employees to be physical.

In most cases, some rights can only be exercised by local residents. In terms of reporting obligations, in addition to financial reporting and minimum capital requirements, risk management reports, compliance and anti-money laundering reports, and other specific reports are also required, depending on the regulator. In terms of taxation, corporate income tax requirements vary from place to place, but in any case it will be higher than offshore regulation.