Holding / IP

Who this is for / not for

This page is for holders of IP or holding companies that license IP, receive royalties, or hold investments and need a bankable structure with clear documentation. It is not for operating trading businesses.

Decision summary

  • Legitimate holding/IP licensing has a clear structure and documentation: ownership, licensing agreements, and flow of funds.
  • Banks want to understand purpose, beneficial owners, and source of funds; weak docs or opaque flows hurt approval.
  • Shortlist jurisdictions that accept holding/IP structures and are bankable for your profile; then choose partner type and request introductions when ready.

Banking & payments reality

Banks assess purpose, beneficial ownership, and source of funds. Holding and licensing income are acceptable when properly documented; unexplained flows or missing agreements raise flags. See Bank account opening checklist. Payment processors are less common for pure holding; banking is the main focus.

Costs & timeline

Typical ranges depend on jurisdiction; formation and banking can take 1–3 months. See Costs, timelines, hidden fees and Compare jurisdictions.

Docs & KYC checklist

Banks want: ID, proof of address, company docs, description of holding/IP structure, licensing or royalty agreements (or clear explanation of flows), beneficial ownership, and source of funds for initial capital. Use Bankability checklist.

Ongoing obligations

Ongoing: accounting, annual returns, and often tax and reporting (e.g. CRS/FATCA). Some jurisdictions expect substance or economic presence. See jurisdiction pages and Compliance (CRS/FATCA/AML).

Common failure points / red flags

Common failures: no written licensing or ownership documentation; opaque flow of funds; jurisdiction the bank does not serve for holding structures; weak source-of-funds narrative. Strengthen structure and docs before applying.

Alternatives

Alternatives: different jurisdictions (e.g. Ireland, Netherlands, Singapore, UAE) or holding at operating-company level. See Compare jurisdictions.

FAQ

What do banks want for holding companies?
Clear purpose, beneficial owners, source of funds, and documentation of the structure (e.g. licensing agreements, ownership). They want to see legitimate commercial activity, not opaque flows.
Which jurisdictions suit holding / IP?
Ireland, Netherlands, Singapore, UAE, Hong Kong, UK are often used. Compare banking difficulty and substance requirements.
Do I need a licensing agreement in place?
Having written agreements (or a clear explanation of current and planned flows) helps banks understand the business. It does not have to be a single template; it must be coherent and consistent with your narrative.
What is substance and does it affect banking?
Some jurisdictions require economic substance (e.g. local activity, staff, or spending). Banks may ask how the entity is managed and where; weak substance can affect both tax and banking.

Next steps