St. Vincent and the Grenadines offers a favorable tax environment for international banks, with no taxes on foreign-source income and no exchange controls. The cost of operating an international bank in St. Vincent and the Grenadines is relatively low compared to other jurisdictions, which can translate into higher profits. The country has a well-established regulatory framework for international banks that offers flexibility in terms of the types of services that international banks can offer, which can enable banks to tailor their services to the specific needs of their customers. Finally, St. Vincent and the Grenadines has strict confidentiality laws that protect the privacy of clients, which can be beneficial for international banks that value client confidentiality.

The bank must have a physical presence in St. Vincent and the Grenadines, such as an office and local employees. One of the requirements is to have at least two local employees, one at senior management level. In St. Vincent and the Grenadines, all international banks are required to have a FSA-approved registered agent. The registered agent acts as a liaison between the bank and the regulatory authorities.

The paid-up capital requirements differ depending on a license class. 

Class A International Banking License:

• Must establish and maintain a capital fund with fully paid-up capital of US$3,000,000 or its equivalent in another currency;
• Required to hold a deposit or invest the sum of US$500,000 or its equivalent in another currency.

Class B International Banking License:

• Must establish and maintain a capital fund with fully paid-up capital of US$500,000 or its equivalent in another currency;
• Required to hold a deposit or invest the sum of US$100,000 or its equivalent in another currency. 

In summary, Class A license holders have greater flexibility in the types of banking and financial services they can offer, but they are subject to more stringent regulatory requirements and higher minimum capital requirements. Class B license holders are limited in the types of activities they can undertake, but they are subject to less stringent regulatory requirements and lower minimum capital requirements.   

There must be at least 2 Directors and at least 1 Shareholder in the company's structure. No nationality or residency restrictions. 

International Banks licensed in St. Vincent and the Grenadines are exempt from Corporate Income Tax on income earned from offshore banking activities. Dividends, interest, and royalties paid by an International Bank to non-residents are exempt from withholding tax. Capital gains are not subject to tax.

However, as a licensed company, SVG International Banks are required to pay annual renewal fees to the government.

The licensing process usually takes between 4-8 months if all the documents are in order. Application timeframe will depend on the complexity of ownership structure, commercial proposition, and cooperation of the related parties since the application process runs in close collaboration with an applicant.

No, it is not necessary for the applicants to visit St. Vincent and the Grenadines during the license application process.