Are you looking for an offshore bank for open corporate bank account? Do you wish to change the way your company’s finances and assets are managed? Or, are you unhappy with the current financial climate of your country? For all these concerns, you need to understand why an offshore banking environment is ideal for a company. There are many differences in opening an account for your company, and a personal offshore bank account. Indeed, the primary goal is to secure your wealth in a safe, and sound destination. However, there is so much more to this industry. By opening an offshore bank account for your company, you will be able to diversify your assets. In the long run, your assets will be protected in a better way.
When you choose an offshore bank for open corporate bank account, there are few things you need to keep in mind. These details will ensure that you make the right decision. After all, the offshore bank is going to carry most of your money. And, it has to be a safe move.
Technically, the process of finding and filtering offshore banks is not an easy one. So, let’s get to know more about five crucial criteria that can help you.
#1 Political and Economic Stability of the Offshore Jurisdiction
First things first, you need to be keen on the political and economic stability of the country. Logically, anyone would open an offshore account when they want to experience financial stability. If your home country’s financial jurisdiction is not stable, how would you improve your chances of protecting your funds? The best way is to choose an offshore country that has minimal political and economic risks.
Let’s understand this with an example.
Liechtenstein is a famous offshore jurisdiction. It has been a part of this industry for a very long time. the place is famous for its economic powers. For many years, the country played an important role in the list of highest GDP per capita. And, the place is also known for having a very low external debit account. When it comes to political stability, Liechtenstein has a great background. This means, you can always choose to open an offshore bank account in this country. The jurisdiction is much sought by individuals and corporates.
Political and economic stability can decide how much you are going to save from your hard earned money. In the long run, it will have a prudent impact on your earnings.
#2 Features and Requirements
These are two different worlds! What kind of qualities are you aiming for from the offshore banking destination? Do you want to focus on privacy and secrecy? Or, are you looking for offshore destinations with stunning banking services? Or, do you want an account that offers a minimal initial deposit? There is no such thing as a perfect offshore jurisdiction for any company. What works for one business may not work for you! This is why you need to get your checklist of features and requirements ready. The right offshore country for your company depends on your answers to the previous questions.
For instance, in Puerto Rico, you will find some of the strictest privacy and secrecy laws. These laws are carefully designed to protect business and personal assets. The policy is famous around the world. Yet, you hardly need 500 USD to open an offshore corporate account in Puerto Rico. If you are running short of 500 USD, (which is close to impossible, when you want a corporate account), you can make use of gold and silver.
#3 Bank’s Actual Reputation!
World banks may have a branch in your chosen offshore jurisdiction. However, the banks reputation can be a little different. This is why you need to be aware of the bank’s actual reputation in the offshore location. Choosing questionable banks is always riskier than the reputed ones. Always engage in deep analysis before finalizing on a bank. This way, you will know what the bank is going to do with your hard earned money. The bank’s reputation tells many stories about how safe your assets are going to be. It will dictate stories on how well the assets will be managed and secured.
For instance, the KfW is a German based bank with sound offshore facilities. In the year 2014, this was recognized as the world’s safest bank. When compared to opening an offshore bank account in Switzerland, the KfW was tagged as safer, and easier. This drew Germany into the spotlight for offshore banking. And, many companies chose KfW for their offshore banking needs.
#4 Capitalization and Liquidity
When you want an offshore bank for open corporate bank account, you are bound to focus on aspects like capitalization and liquidity. You will gain more insight into these topics, when you learn more about the bank’s practices. How are the bank’s investment policies? Do customers with high liquidity invest in the chosen bank? And, is the bank doing well with its finances? These are few questions that can gather tons of information about capitalization and liquidity of the bank.
At any cost, you need to look for banks that have fewer liquidity issues. And, they should not be in line for insolvency.
#5 Bonds with your home jurisdiction
Last but certainly not least, you need to understand if the offshore banking country has a good relationship with your home country. This is a much neglected, and underrated criterion. When the offshore country has a good tie-up with your home country, you are likely to face political risks, similar to the ones in your home land. For example, accounts Ukraine and Cyprus can be frozen easily. This is because these countries have a great relationship with most other nations!
So, it would be wise to pick an offshore bank that is located in a very independent, and far away country. Here, we are keen on the relationship, and agreements signed with your home country.
These are few important qualities you should focus on when you open an offshore bank for open corporate bank account! These traits can build or break your finances easily.