To fully understand the differences between banks and other financial institutions, let us first discuss the meaning of financial institution. You can think of this term as an umbrella that encompasses many companies and organizations, including banks. In general, financial institutions can be divided into two groups: non-bank financial institutions and bank financial institutions. The first group consists of various institutions, including leasing companies, investment banks, financial companies and insurance companies. Bank financial institutions, on the other hand, include banks whose main purpose is to make loans and take deposits. We can take a closer look at both categories.

Banks financial institutions
Banks, more specifically – private or commercial banks, fall under the category of bank financial institutions. A bank is a financial intermediary with the purpose of acting as a middleman between providers of funds or depositors and borrowers. A bank's main job is to take deposits and later use those funds to offer credit to its customers. Another obligation of a bank is to act as a payment agent, which it does by offering a variety of payment services such as credit and debit cards, direct deposit facilities, checks, and cashier's drafts. A bank makes money by investing deposits in securities and assets, but primarily by on-lending the funds to its customers. The main reasons for depositing money in banks are convenience, safety and interest income.

Bon-bank financial institutions
The other type of financial institutions includes investment banks, insurance companies, mutual funds, and others. A number of financial services provided by non-bank financial institutions differ from those provided by a bank. The main difference between the two is that non-bank financial institutions cannot accept deposits into savings and money market accounts while this is one of the core businesses of bank financial institutions.

They now offer a variety of other services. For example, investment banks provide services to their clients such as underwriting of debt and equity offerings, corporate advisory services, securities trading and derivatives transactions, and other investment services. Insurance companies offer protection against certain types of damage in return for an insurance premium. Pension funds and investment funds are savings institutions where investors can invest their money in collective investment vehicles. There are financial services provided by both banks and non-banks, such as B. providing credit, financial advice, leasing equipment and investing in securities.

Examples of non-bank financial institutions
Breder Suasso is a non-bank financial institution whose core business is to offer its customers fast and secure cross-border payments by opening a multi-currency account (which does not require a face-to-face meeting). Other services include internationally accepted debit cards and financial advice for corporate and individual clients. The company's main selling points are confidentiality, security and convenience in cross-border payments.

PaySera is a Lithuania-based non-bank financial institution that offers a free multi-currency account and the ability to transfer funds to 10,000+ banks in 180+ countries around the world in less than 30 minutes. In addition, in cooperation with more than 5000 e-shops, the company offers Paysera Checkout payment method for faster transfer and chargeback of up to 1% of spent money. The company's main selling points are a fast and accessible e-environment, 24/7 service and top-level security.

Every year over USD 1 trillion is distributed worldwide in the form of foreign direct investment. Investments by foreign investors and entrepreneurs are of significant value to the country and are seen as a sign of a healthy economic, political and legal environment. When it comes to investing your money, some countries are simply better than others. It depends on numerous factors such as the country's overall economy and growth prospects, political stability, taxation and the overall legal system, the complexity of starting a business, opening an account and the workforce.

In this article, we summarize three jurisdictions in terms of benefits and other features crucial to foreign investors. These countries have already proven their ability to attract multinationals and other investments, but when it comes to choosing the right place to invest, each country is different and might be better than others in one or more factors.

Singapore

The first country to be analyzed is Singapore, which ranks 2nd among the best countries for investment and 15th among the best countries in the world in the US News Best Countries Ranking developed in cooperation with its international partners

Located in Southeast Asia, Singapore is a bustling metropolis and home to one of the busiest ports in the world. As one of Asia's four economic tigers, the country has experienced impressive growth in recent years thanks to efficient production and manufacturing processes and innovations in the pharmaceutical and electronics industries. High GDP per capita and low unemployment make Singapore one of the wealthiest countries in the world.


Hong Kong

Hong Kong is a special administrative region of China. While Hong Kong is often considered as a separate entity from China, it is not a country and therefore enters all lists and rankings under the name of China. China takes 26th place among best countries to invest in and 20th place among best countries in general.

Hong Kong’s legal system is characterised by the strict adherence to principles and the rule of law. It operates a free trade economic system and promotes minimal government interference in most sections of the economy. This reflects on the small number of tariffs and duties on traded goods and therefore it is a better place for investments than other parts of China.

Foreign investments are attracted by promoting a favourable investment climate with low taxes, few restrictions and additional incentives to encourage investments. Corporate profits tax rate is 16.5% with a possibility to waive 75% of the tax. There is no tax levied on dividends.

Company incorporation is a simple and fast-forward process. All applications for company incorporation also include an application for the business registry. The application can be submitted online and the processing generally takes one hour (as opposed to four days if the application is submitted in hard copy).


Due to its impressive growth and increasing immigration, Singapore attracts the best professionals to its workforce. The country offers cultural diversity and, with four official languages, is an important gateway for international trade.

The corporate tax rate is 17%, but it can be reduced by taking advantage of numerous government subsidies, incentives, and other programs.

Singapore's legal system is known for its integrity, efficiency and fairness, making the country better than many as a place to start and operate a business. The World Bank Group has recognized Singapore's political and regulatory environment as the most business-friendly in the world.

Other factors:

Least Corrupt Country in Asia;

Best IP protection in Asia;

Most popular country for arbitration in Asia.


United Arab Emirates

The United Arab Emirates or UAE is listed as the 22nd best country in the world and is not mentioned among the best countries for investment according to the above ranking.

Before the discovery of oil in the mid-20th century, the UAE's economy was mainly based on fishing and the pearling industry. The country experienced rapid growth and general transformation along with the start of oil exports in the 1960s. Today the country's GDP can be compared to that of leading European countries and the World Economic Forum has named the UAE the most competitive place in the Arab world.

When incorporating a company in the United Arab Emirates, foreign investors can choose between offshore or onshore registration, whichever is more suitable for the type of company and the activities planned. Onshore registration means that the investor establishes a business presence on the UAE mainland. Offshore registration usually refers to a business presence in one of the UAE's free trade zones.

The UAE does not levy corporate income tax at the federal level. However, most Emirates have some corporate income taxation and can even reach 55% for certain industries. In practice, corporate income tax is mainly levied on gas and oil companies and branches of foreign banks.

Other factors:

The UAE is among the most liberal places in the Gulf with a legal system that allows freedom of religion;

No sales tax or VAT but with plans to introduce it in the future;

In addition to traditional banking, Islamic (or Sharia-compliant) banking has seen tremendous growth in recent times.

When it comes to buying a business, it is important to understand and decide whether to register an entirely new business and start from scratch, or choose a previously formed or established business that has already been pre-registered. Ready-made companies are also referred to as paper companies or shelf companies (blank check companies) due to their acquisition process structure. As a rule, the company has already fulfilled all the requirements for legal registration. Therefore, it can be purchased by anyone who is willing to skip the registration and incorporation process. Accounting and various law firms usually sell such companies. The companies mentioned have no commercial or business activity, they only exist in a stand-by mode.

The advantages of readymade companies
The registration process for new businesses typically takes weeks or even months due to documentation processing and approval. In contrast, when purchasing a ready-made company, an entrepreneur only has to register his purchase in order to achieve a legal conclusion of the purchase process. If a person chooses to complete the registration process online, it takes even less time, usually it can be done in a few hours. Another benefit is that an already registered company will have a history or status showing that they have been in business for some time, meaning that when you first look at the company details it gives a sense of an existing experience looks at

Ready company purchase in Cyprus (fees, requirements)
There are various official websites or service providers that offer ready-made Cypriot businesses to buy online. This can be LP, LLC, Trust or other type of entity. The capital required varies from a few hundred to several thousand, depending on the size or scope of a company and its age. This service includes all paperwork to be completed and the relevant fees payable to HMRC.

A purchase of the company may come with various licenses, such as an apostilled power of attorney. However, sometimes the total price of the company does not include some of the mentioned extras, so the future owner has to request them by paying them and taking into account the time frame required for the company's closing process.

If a person resides in a country other than Cyprus when purchasing the business, they can have all procedures for the maintenance and operation of the business carried out by email, fax or courier.
Basic requirements
If you are willing to purchase a readymade Cypriot company, there will be following requirements you should be aware of:

The purchase must be made with a nominee director and nominee shareholder appointed;
A person will need to choose company’s name from the list given by the service providers;
A set of corporate documents must be signed by the person who is purchasing the company (the trust deed, the open date share transfer agreement);
A company must have a financial support for some period of time in order to function.
Time frames
If you are purchasing Cypriot readymade company you should be ready to deal with the following time frames:

A vat registration number can be given in maximum 2 days
Bank account can be opened in maximum 5-7 days
Company’s new name (if changed) approval by the Cyprus Registrar of Companies maximum 3-4 days
Adding new directors to the documents (if necessary) maximum 7-10 days

In terms of political and civil liberties, the Palestinian Territories are 3. Citizens in the Palestinian Territories experience little to no civil liberties and political rights. Citizens are not free to express themselves and enjoy neither political freedom nor representative government. Countries with this political situation are dangerous for investment as an authoritarian government may have over-control over economic affairs. In terms of journalistic freedom, the Palestinian Territories media ranks fourth.