Guide To Offshore Banking Services: Definition, How To Open And Benefits
If you are a global businessman running an international business in the different corners of the world, you are often required to perform numerous dealings through a bank account. But an offshore bank account is quite different from your regular bank account. What is it?? Well!! An offshore bank account simply means having an account outside the country you are currently living in.
In simple words, offshore banking services means depositing your money with a financial institution situated outside of your country as the name itself suggests, “Banks situated in foreign”. The main reason for the establishments of these financial institutions was to relieve investors of heavy tax burdens and attract more investments. There are many benefits associated with these offshore banking services and any person/businessman can open an offshore banking account with just a few hours of documents and procedures but how to choose the right type of offshore banking account? Let’s find out with this offshore banking guide.
Essential Things To Consider While Choosing An Offshore Banking Account
There are many things you should consider at the time of opening an offshore banking account and one of them is choosing the right type of account. There are two types of offshore accounts — Corporate and Individual accounts. Find out your preferences and choose the type with the amount of money you want to allocate to the bank account. This is the step where you can find out which bank is likely to accept your application as there are a number of banks who are willing to attract more customers but not all of them are providing the top services.
You should find a bank with internet banking services so that you could manage your offshore account form your own country. Many international business offshore banking service provider like Axios is providing an effective and efficient offshore business banking services to its customers with excellence and ease. Just check with the fee structure and opening procedure as there are some banks where you do not even need to present in-person to open an account. You can do it by sitting at home but do not forget to consider currency and business goals.
How To Open An Offshore Bank Account?
Before opening any offshore banking account, it is wise to pay attention to several rules and regulations regarding offshore banking services due to the possibility of misuse of public funds. After following these rules, you do not have to worry about anything.
Most people take the process of opening an offshore bank account with too much complexity but opening this bank account is as easy as in your own country. These days, the banks are extremely concerned about conducting detailed and ongoing due diligence on offshore clients. Just perform these numbers of documents asking for personal information like your full name, national ID or passport, citizenship, address and occupation with driver’s license to verify the authenticity of the information you have provided and you are all set.
There is nothing different from opening a bank account in the country you are residing in. however, you will be demanded to provide some additional documents or requirements with a purpose to reduce illegal activities like fraud and money laundering.
These documents include:
- Financial documents by your local bank
- Documents showing the sources of funds that you are going to deposit in an offshore bank account.
- A reference from your exciting bankers.
- Proof of residential address typically a utility bill
- A letter stating expected activity with supporting documents if available.
After depositing all these documents, the bank will verify this and monitor your account on an ongoing basis to ensure that the activities on your account are consistent with the profile. If you have any significant funds from the business or real estate transaction, you may be asked to provide sales contracts or other relevant documents. If there is a deposit of funds from the insurance contract, you may need to provide a letter from your insurance company.
Keep in mind that just because an offshore bank is asking that much information before opening an offshore bank account, it does not mean that you are a criminal or being suspicious of them. This detailed due diligence procedure is a part of international business today. If the offshore bank like Axios finds a sound background check with a good two-way channel of communication, it will come with a strong foundation of flexible business relationships.
What Are The Benefits Of Opening An Offshore Bank Account?
Since the establishment of offshore banking services, they have been providing many exciting and amazing benefits to individuals and businessmen. Most people consider the benefits of offshore banking with money laundering and tax evasion but the major benefits are far beyond that. There are many benefits you can enjoy while having offshore banking services. Let’s have a look:
- Flexibility — This is one of the major advantages you can avail of from offshore banking. Being an international businessman, you have many commitments in other countries and by choosing to move their money to another country, you can pay your commitments or receive checks from a current onshore account.
- Security — By using the services of offshore banking services, you could be assured that your money is in safe hands. Offshore internet banking provides you relief from the insecurity of getting money used in wrong actions. This is because the information related to electronic transfer is stored in various databases.
- Great Service — Offshore banking services generally provide highly personalized services by giving you the opportunity of access to your money online round the clock. You can also have a relationship manager appointed to your account so that you will always have a personal contact in touch. You can avail highest service levels from many international offshore banking providers like Axios.
- Tax — You can also avail expat tax advantages by using offshore bank account services. These tax benefits can range you from keeping your money secured outside of the tax jurisdiction of your local country to protecting it from taxes in the country you are currently residing in.
Bottom Line
Now you know what offshore banking services are along with their benefits and opening procedures. These services offer lots of benefits to the individuals as well as entrepreneurs and small businessmen to expend their wide potential wealth into different corners of the world. When using these offshore banking services and receiving international transfers, do not forget to consider a tax professional to ensure the following of all rules and regulations.
