Puerto Rico Banking License

Puerto Rico is a non-incorporated territory of the United States. While all citizens of Puerto Rico are deemed citizens of the United States, the island nation is far from an extension of its considerably larger neighbor to the north. Puerto Rico is a self-governing, democratic nation with, among other cabinets of government, its own independent taxing authority. In recent years, the Puerto Rico Banking License has drawn considerable interest to the Island.

Given its location in Caribbean and recent challenges to its economy, the government of Puerto Rico has sought to enact legislation favorable to the development of an offshore financial services center. This includes certain tax benefits, including tax rates as low as four percent on corporate taxes and tax holidays for certain expatriates. Most recently, Puerto Rico passed Act 273 which established international financial entities and a concomitant international banking license.

While not technically offshore, Puerto Rico is an ideal jurisdiction for the establishment of an international offshore bank. Puerto Rico’s International Financial Entity license grants the holder broad banking powers at the competitive tax rate of only four percent of profits as well as easier access to the United States banking system. The Puerto Rico Banking License, while of recent vintage, provide to be the most popular of 2018 with over twenty-five offshore banks having been established.

Advantages of a Puerto Rico Banking License

In recent years, increasingly complex regulation and an erosion of financial privacy rights in major financial centers such as the United States and European Union have continued to drive the offshore banking industry. Billions of dollars are kept on deposit in offshore banks, even as certain jurisdiction have increased their focus on Anti-Money Laundering controls – which has only enhanced the legitimacy of offshore banking. However, with this industry push towards great transparency has come a tremendous market opportunity to start an offshore bank as the majority of banks have stopped accepting international and/or traditional high-risk banking clients.

Puerto Rico Banking License at a Glance

 License International Bank License
 Time to License 3 to 4 Months
 Capital Requirement $300,000
 Tax Structure Approx. 4% Percent Tax on Offshore Profits

Puerto Rico Banking License Package

  • Incorporation of Puerto Rico offshore corporation or comparable jurisdiction
  • Arrange for local registered officer and local directors, if required
  • Draft corporate bylaws, minutes and owner share issuances
  • Establishment of corporate bank account suitable for forex operations
  • Establishment of merchant service account for accepting credit and debit cards
  • Draft requisite business plan, financial statements and financial projections
  • Draft requisite Anti-Money Laundering & Know-Your-Customer policies
  • Arrange for requisite surety bond
  • Prepare and process application for Puerto Rico International Bank License
  • Representation before licensing regulatory authority, banks and liquidity providers

Contact the Puerto Rico Banking License Experts

Trust our over twenty-five years’ experience in creating innovative solutions for our clients. Contact the securities
licensing experts at FinLaw to begin the process of obtaining your Puerto Rico Bank License today.
Our knowledgeable and skilled professionals are pleased to answer any of your questions.

Call (213) 262-9112 for your free consultation or contact us here.