Offshore Banking – Top 5 Facts
Offshore Banking Top 5 Facts
Offshore Banking Top 5 FactsWhether using the term offshore banking, international banking or foreign banking, the practice of banking in a jurisdiction outside an individuals, or company's, place of residence is still a popular strategy. Globalisation and competitiveness between jurisdictions to attract foreign investment means there are fewer barriers to investing in other countries, including setting up and offshore company or opening an offshore bank account. Due to bad press and general misconceptions about Offshore banking there are a few myths about setting up bank accounts in foreign markets. However, entrepreneurs looking to expand their business to international markets can enjoy a number of benefits from this strategy.
The benefits gained from international banking strategies are usually focused on taxation and this is certainly a major attraction but not the only one. Offshore bank accounts can also provide operational efficiencies, increase security of assets and provide access to international business opportunities. Following are 5 facts about offshore banking to give some insight into potential benefits.
Offshore banking is legal Provided you follow the correct procedures of the jurisdiction in which you are setting up a bank account and you meet the legal obligations of your residential jurisdiction. Different jurisdictions will have different requirements in terms of required due diligence but an experienced corporate service provider can guide you through this process.
The legitimate purpose of offshore banking is not to evade tax As mentioned, there are a number of benefits of international banking strategies. Legal tax planning and protection of financial assets are two of these.