Where to Register Your Offshore Company?
This is the first question which comes to mind while looking at the numerous options available at your disposal. There is no straightforward answer to it. The best place to incorporate your offshore company actually depends upon a number of factors which vary from case to case for different customers. These factors could be taken into consideration while selecting the ideal offshore location:
- Nationality of the applicant
- Place of residence of the applicant
- Company activity
- Location of company’s client or suppliers
- Place of bank account
- Ease of company incorporation
- Types of documents required
- Banking facilities required by the applicant
We offer various suggestions according to the needs of our customers.
- Company Formation
- Holding companies
- Offshore E-Commerce Solutions
- International Fiduciary Structure
- Offshore Shelf Corporation
- Apostille Certification and Documents Authentication
- Annual Renewal Services
- Certificate of Good Standing
- Consulting on Corporate Structures
Opening a Bank Account
Types of offshore accounts
The most common types of offshore accounts are savings accounts, which are normally available as fixed or variable rate accounts.
Variable rate accounts will typically offer easy access to funds while fixed-rate accounts generally stipulate that you must hold the money in the account for a minimum period (typically between 1-5 years) before touching it.
Many high street banks also offer offshore current accounts with debit cards, credit cards, and the ability to carry out day-to-day banking functions. However, the currency will usually be in that used by the country where the account is held unless you have a multi-currency account.
Other features of offshore current accounts can include mobile/internet banking, low-cost international transfers, and additional services such as loans and insurance.
You can also open an offshore business account with most banks. This can be particularly useful if you have set up an offshore company.
Reasons for opening an offshore account
People opt for offshore banking for various reasons. If you live in more than one country, or work/do business overseas, offshore accounts can make it easier to manage your finances. Reasons for offshore banking include:
- The ability to operate accounts in multiple currencies. Multi-currency accounts give users the freedom to make and receive payments in different currencies.
- Advantageous additional features such as foreign exchange features that allow you to fix currency prices in advance. This removes the uncertainty that can be a downside of dealing internationally.
- The convenience of concentrating financial transactions that involve multiple countries through one bank. This is ideal for businesses with operations in several countries as it avoids having to deal with separate institutions in a range of countries.
- The security of offshore banking, which can give peace of mind to individuals in countries that are politically/financially unstable. Money held in an offshore account won’t be affected by domestic problems.
- For those looking to relocate to another country at a later point, offshore banking offers an easy way of opening an account ahead of moving to the new country.
Advantages and disadvantages of offshore accounts
- Flexibility – those who need access to their money or to international financing can do so more quickly and easily with offshore accounts than would be possible with domestic arrangements.
- Financial benefits – offshore accounts typically offer higher interest rates and lower taxes than domestic accounts.
- Diversification – if you’re investing money abroad, offshore banking gives you the potential to diversify your investments in various countries rather than sticking all your eggs in one basket.
- Privacy – offshore banks typically offer higher levels of privacy than domestic banks, with confidentiality agreements that personal information will not be passed onto any third parties. Some banks also offer anonymous accounts.
- Larger deposits – some offshore bank accounts require high initial deposits. You may also need to agree to keep a minimum amount of money in the account to avoid charges.
- Expensive costs – transaction costs and administration fees are typically higher than with domestic and standard high street banks. You should ask for a full list of charges ahead of opening an offshore account.
- Less protection – although offshore banks can offer security for those living in financial or politically unstable countries, funds are less likely to be protected by guarantee schemes. For example, money in offshore bank accounts is not protected by EU member state deposit guarantee schemes. However, some countries offer separate offshore banking protection schemes.
Please contact us anytime.