In the long run, your offshore bank account will be the right vehicle for pushing your business into foreign lands. If you are keen about expanding your business, and creating many branches around the world, you need to think about offshore banking at an earlier stage. This is an interesting point many individuals, entrepreneurs and investors choose to miss.
Offshore bank accounts are much more than personal accounts. Instead, these are powerful tools for convenience and protection of your offshore venture. With this being said, let’s learn more about the reasons to open an offshore bank account.
The talk about any offshore bank account will be incomplete without the tax rewards. Taxation optimization is an inherent benefit of offshore banking to most companies. When you open a bank account in your home jurisdiction, you will subject to serious tax burden. On the other hand, offshore locations are tagged as tax havens, and pure tax havens. These accounts will ensure that you don’t suffer a hefty tax on your income. Most of the time, you will end up paying a small amount, or no money at all.
The best way to protect money from the hands of your local government and tax authorities is through offshore banking. And, if your country is burdening you with high tax rates, and poor interest returns – now is the best time for offshore investments.
Protect Your Assets
Asset protection will become highly crucial when your business starts to grow. You may not even notice, but your business would be worth millions. This is when all pruning eyes will be set on your venture. Securing money in your home jurisdiction will be a challenge. In fact, you cannot hide any amount of money from your local government and authorities. Thus, the best way to ensure asset protection is by holding money in another country.
Before you consider opening an offshore bank account, you should learn more about scenarios where expats are stopped from using money from their “own” accounts. When the banking system in your jurisdiction doesn’t offer asset protection, and if the methods are feeble, you need to be cautious. Alternative techniques for wealth management has to be sought. Remember, a weak economy and political situation can cause serious threat to your venture.
Luckily, you have a fall back option. And, that would be offshore banking. Many a times, the offshore bank accounts will give you a sense of safety. If the account is held in a regulated country, with transparent systems – you will be even more protected. For instance, if you choose to open an offshore account in Switzerland, you will be protected by the Swiss offshore privacy laws. Now, nothing would be safer than your company’s money.
The talk about offshore banking will be incomplete without convenience. If your business is located in multiple countries, you are bound to focus on offshore banking. This will reduce a lot of trouble for you.
Unlike traditional accounts, offshore banking systems can be accessed from anywhere. The accounts are often designed with internet banking facilities, and round-the-clock services. Most reputed banks allow offshore investors to carry anonymous credit cards too. This means, you can accomplish transactions without anyone knowing about it. Even the banker will not hold much information about the transaction made.
Interesting utility services offered by most offshore banks would be internet access, ATMs, debit cards, credit cards and other customized facilities. You must remember that these convenience services differ from one bank to another.
Another integral quality of offshore banks would be higher levels of security. For most offshore investors, this is a pull factor. The Legal Resource Network claims that 15 million cases are filed in the United States every year. And, if your account is held in a jurisdiction with unfavorable and uncertain economic conditions, the frequency of bankruptcy, seizures, inflation and other financial burdens will be high. This can cause serious problems like insecurity.
Meanwhile, offshore investors who pick jurisdictions that operate safely are protected. You have many stunning offshore destinations with strict regulations and offshore policies. The primary aim of these jurisdictions is to protect your hard earned money.
Privacy at its Best!
Another integral benefit of owning an offshore bank account would be privacy. When a location turns into an offshore banking hub, many new rules and regulations are imposed. One of the most vital changes made to the country would be its privacy laws. It is crucial for the offshore location to protect the assets of its investors. At any cost, details about the investment or investor should not be shared with anyone else. Of course, the only limitation to this regulation would be an act of crime. Else, it is the responsibility of the banker to protect the account holder’s details.
Many offshore banking destinations are strict about the maintenance of account information. For example, in Switzerland, bankers who don’t obey the laws will pay a fine of 50,000 Euros. And, they may even end up in jail. On a worse note, these bankers are likely to lose their license. Some of these privacy laws are several centuries old. This makes it even harder to break the regulations. Choosing such jurisdictions for your company’s bank account is always good. You will be able to enjoy the peace of mind of protecting your account “perfectly”.
Better rates of interest
Last but certainly not the least, you will have access to stunning rates of interest. When compared to many western countries, and even your local jurisdiction – offshore locations may have a higher interest rate. The interest rates are maintained high to attract savvy investors. Many a times, the rates range between 7 and 12 percent. The actual value depends on the bank, type of account and the amount deposited. In the long run, offshore banks are great way to enjoy a better return on investment.
These are just few of the many reasons to open an offshore bank account. If you are truly keen in protecting your assets, offshore banking would be your first, and best choice.