Money Transmission Services Licenses

If you are thinking of making money in an offshore business you might think of getting a license for money transmission services. For an example of just how much money is transferred a look at WU’s financials for the first quarter of 2010 is instructive. They reported revenues of $1.2 Billion for the first three months of 2010 and a profit of over 25% on revenues. PayPal reported over $650 million in revenue in 2009. In addition there are SWIFT transfers, bank to bank, world wide.

Companies such as WU, Moneygram, and many others offer wire transfer services most typically to individuals who do not have other means of transferring or sending money across a country or internationally.

It is entirely possible so set up such an operation as an offshore business. There are a number of offshore locations where this is possible. What is necessary is to assess how to most efficiently and profitably address a need to transfer money. What is necessary is to choose a location and purchase a license.

Who Needs the Service and How Can One Profit Offshore?

We use WU and PayPal as examples as people typically use these companies to transfer hundreds instead of tens of thousands of dollars. This is a very large market as seen by the financials of both companies. Mexican workers in the USA send money home as Nicaraguans working in Costa Rica and Colombians working in Panama. Although many expat workers present cash to send home it is entirely possible to pay by credit card in order to send money from country to country.

Is This a Feasible Idea?

There is a market throughout the world and with a competitive business plan it is possible to tap into the need to transfer money. There are new companies setting up every day. Setting up in the right tax advantaged jurisdiction with minimum paperwork and capital investment requirements could give the individual or corporation a head start on competitors. The first step is to consult with competent counsel and obtain a license to transmit money.

Obtaining a Government License for Money Transmission Services

Your first decision will be to choose a jurisdiction from which to operate. With good advice you will be able to pick a spot where paperwork is minimal and the potential for profits high. Setup costs typically run around $27,000 including the government application fees.

Required information for an individual or corporate application will include personal information, business history, and the like from all directors, shareholders, and officers of the company.

With the choice of a competent advisor in setting up offshore money transmission services the owners can effectively deal with paperwork issues even to the point of using qualified nominee services to maintain individual privacy in setting up the business. Other useful aspects of such an operation are that back office work can be cost effectively outsourced and professional software obtained. Competent counsel can help with setting up and maintaining a web presence to drive business to your money transmission services offshore business.