In the present article, the UTIP Technologies specialists pointed out the advantages of working without license for forex brokers and common non-regulated jurisdictions.
Why registering a forex-company in unregulated areas is worthy?
Non-regulated jurisdictions, also known as offshore zones, are popular because of low or zero taxation and various perks. Unregulated brokers are free from making a number of procedures, providing financial reports and doing other activities. Meanwhile, their licensed colleagues are required to perform it regularly.
As an example, regulatory authorities underway monitoring procedures in the offshore jurisdictions. But an unregulated broker is immune to it.
Benefits of selecting an offshore jurisdiction for company registration:
- A low-priced company registration;
- Coherent procedure for opening a company and further maintenance;
- A completely remote registration process, no cost of visiting the country, maintaining the office and its staff;
- A minimum set of documents for registration;
- 1-month company registration period.
Unregulated jurisdiction is the most favorable option for novice brokers. The reason is that a new entrant can make the most of money saved on the license. For example, to invest in high-quality lead flow, connect several payment solutions including a cashier one etc.
The most common non-regulated jurisdictions
SVG. Saint Vincent and the Grenadines is one of the most popular countries for conducting Forex activities without a license. An island nation in the Caribbean Sea. We have already mentioned that there are many large forex-brokers working there.
MI. The Marshall Islands have no local forex trading regulatory bodies either. This is an island state washed by the Pacific Ocean.
Differences between SVG and MI:
- Price and time: cheaper but longer to register a company on SVG.
- Set of documents for registration: fewer documents are required on MI.
Needless to say, an offshore registration has its pros and cons.
One of the main advantages the brokers find offshore jurisdictions cost-efficient, is the taxation system. Minimal taxes or their absence let companies significantly reduce operating expenditures.
None the less, brokers should be aware of required professional knowledge and Forex market-experience for working in the offshore jurisdictions. We are always ready to assist in registering a company in the offshore jurisdictions.
If the question of registering a company on SVG or MI is relevant to you, we are pleased to give you a more detailed information.
Follow the UTIP website to get more information about these and other special offers.
