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An Offshore Finance Company (OFC) can offer banking services to both private individuals and corporations worldwide, with no limitations on number of customers, amounts on deposit or number of currencies. The OFC can offer virtually anything a fully licensed bank can offer, but the word bank cannot be included in the name. Activities of an OFC can include but are not limited to:
- Deposit taking & lending
- Debit and credit card services
- Issuing of financial guarantees and instruments
- Cash management services
- Current accounts
- Cheque (Checking) accounts
- Savings accounts
- Term deposits
- Issuing of CDs
- Wire transfer services
- Payment processing services
- Fund management
- Marketing of investments The company is not subject to capital reserve requirements. Directors and shareholders can be of any nationality and resident anywhere. Although the OFC is not subject to Central Bank supervision and regulation, its activities are regulated by several acts. Some of the relevant act are listed below:
- Bills of Exchange Act 1908
- Cheques Act 1960
- Companies Act 1993
- Consumer Guarantees Act 1993
- Credit Contracts and Consumer Finance Act 2003
- Electronic Transactions Act 2002
- Fair Trading Act 1986
- Financial Transactions Reporting Act 1996
- Investment Advisers (Disclosure) Act 1996
- Personal Property Securities Act 1999
- Proceeds of Crime Act 1991
- Property Law Act 1952
- Reserve Bank of New Zealand Act 1989
- Securities Act 1978
# Unclaimed Money Act 1969. New Zealand Offshore Finance Institution
KEY FEATURES: - Time Frame for establishing a new ready to operate OFC: 4-6 weeks
- Minimum number of directors required: 1
- Minimum number of shareholders required: 1
- Annual audited report required: Yes
- Local registered office and agent required: Yes
- Tax on reported company profit (if any): 33%
- Approved Issuer Levy (on interests paid to customers) 2% FORMATION & REGISTRATION - New Zealand registration of an Offshore Finance Institution, establishing the entity that may legally carry on the business of banking and financial services. Includes Certificate of Incorporation and Constitution.
- A locally manned Registered Office that maintains statutory registers such as for shareholders, directors and directors certificates.
- Support and documentation service for transactions such as appointment and removal of directors, issue or acquisition of own shares and distributions/dividends that require special procedure and care.
- Making required filings with the Companies Office such as the Annual Return and after the issue of shares.
- Offshore Finance Institution Compliance Manual that includes chapter on company law. New Zealand Offshore Finance Institution
APPROVED ISSUER STATUS AND INCOME TAX COMPLIANCE - Obtain a Tax File Number from the Inland Revenue Department for the Offshore Finance Institution to enable the company to comply with the income tax.
- Application for and granting of Approved Issuer Status that will allow the company to register securities such as Term Deposits and Savings Accounts
- Registration of securities that the company wishes to issue such as Term Deposits, Savings Accounts and Cheque (Checking) Accounts. This enables the company to pay interest to non-associated non-residents without the deduction of withholding tax and without disclosure to the Inland Revenue Department of who the interest was paid to, on registered securities. Note: an Approved Issuer Levy of 2% of the interest must be paid by the company.
- Completion and filing of Income Tax Returns and Approved Issuer Levy returns to keep the company compliant with local tax laws. Note 1: the necessary information must be supplied by the client and/or the client's accountant.
- Tax and Levy returns due included in Monthly Task Reminder and Tip emails ANTI-MONEY LAUNDERING COMPLIANCE - Offshore Finance Institution Compliance Manual that includes chapter on Anti- Money Laundering laws with model Anti-Money Laundering Company Policy
- Review of the company's client identification, record keeping and suspicious ransactions reporting systems for compliance with the Financial Transactions Reporting Act 1996 and the Proceeds of Crime Act 1991. ACCOUNTING & AUDITING - Appointment of a qualified Auditor recommended by us or as selected by the client. Note: this is required by the Companies Act 1993.
- Appointment and liaison with a local qualified Accountant, if required. Note: Accounting and Auditing services will be billed separately by the local professionals recommended by us or selected by the client.
- Review of the company's proposed accounting systems to ensure that the company can meet the requirements of the Companies Act 1993 and the Financial Reporting Act 1993 that the company keep proper accounting records and produce financial statement that can be readily audited.
- Accounts Filing due included in Monthly Task Reminder and Tip emails.
- Filing the company's audited financial statement accounts with the Companies Office on receipt from the client, the company's accountant or its auditor.
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