A business organization starts from a brilliant idea which is implemented and resulted in profit generation while providing goods and services to consumers in general. An offshore company setup is a great way for entrepreneurs to join international trade. For this type of business, it is important to open an offshore bank account to ensure proper functioning and for taxes. Hence it is important to choose the most appropriate bank account.
Defining Offshore Bank Account
Offshore account means a bank account which is opened outside the entrepreneur’s home country. Any business or individual who holds a bank account offshore is regarded as an offshore bank account. These accounts have their own legal and financial advantages which is why many businesses want to open such type of bank account. There are two types of offshore bank accounts: offshore bank accounts for individuals and offshore bank accounts for corporate clients.
There are several features of an offshore bank account, and these are the following:
- Ease of transfer of international payments
- Efficient wealth management services
- Ease of money management
- Total confidentiality
- Flexible use of multiple currencies
Online Offshore Bank Account
One other great advantage of opening an offshore bank account is the ease of doing any financial transaction. It is possible to manage the account anywhere and anytime around the world through the online offshore bank account.
Here are some of the best advantages of an online offshore bank account:
- Fast transactions
- Quick service
- Availability within the client’s fingertips
- 24/7 availability
One thing that makes an offshore bank account popular is its wide variety of financial service offered.
These are as follows:
- Deposit taking
- Globally recognized ATM and debit cards
- Savings account
- Personal and commercial loans
- Management of funds
- Corporate administration
- Trustee services
- Trade finance
- Trade finance and letters of credit
Benefits of Opening an Offshore Bank Account
There are many reasons to open an offshore bank account. To start off, there are 14,000 offshore bank accounts around the world.
Here are other reasons or benefits entrepreneurs can get from having an offshore bank account:
- Little to no tax at all
- No political risk
- Protection of assets
- Foreign exchange service benefits
- More privacy
- Higher return generation
- Ease of money transfer
- More diverse investment portfolio
- Savings protection
- Flexible enough for current diversification
Steps to Opening an Offshore Bank Account:
There are a few steps to follow when opening an offshore bank account in Dubai. They are as follows:
- You have to pass KYC or the three proof of clearance
The KYC process includes three tests of proofs of clearance which are proof of residency, proof of identity, proof of wealth, and credit history report.
- Make your initial deposit
After the KYC, it is required to deposit an initial sum. This amount ranges from $350 to $1,250.
For corporate offshore bank accounts, there following requirements are added: certificate of incumbency, company brochure and description, attested certificate of good standing, client profile, memorandum and articles of association, bank documents for the last 6 to 12 months, and document certificates from the Ministry of Foreign Affairs.
The maximum duration for processing an offshore bank account is 3 weeks. You would be given online access once the account becomes activated.
Today there are 7 countries that are known as the best places to open an offshore bank account in. These are the UAE, Cayman Islands, Nevis, Germany, Singapore, Belize, and Switzerland.