Offshore Company Account
The advantages of holding foreign account on an offshore company name are numerous. Foreign accounts principally serve to enhance international trade and cash transactions, while increasing privacy in the line of handling personal or corporate affairs. The advantage of holding foreign account on an offshore company name is closely related to the very same reasons for which offshore companies are formed. These advantages include tax efficiency, confidentiality, asset protection and international trade and commerce.
Asset management, a key benefit of offshore companies and entities, enables entrepreneurs and individuals alike to enhance their financial standing, safeguard their wealth so as to ensure longevity of assets and make informed investment decisions that ensure that wealth increases in ways that are tax efficient. The advantage of holding foreign account on an offshore company name can be simply summarized into the concept that foreign accounts provide a medium by which offshore companies can effectively achieve their goals and produce the desired results of the company itself for what it is, an ‘offshore company’.
It is never too late to learn about ways of protecting future interests. We introduce clients to Dominica Citizenship by Investment which is used for qualifying foreign investments in Dominica. This was first administered as the economic citizenship programme but was modified to include a real estate investment option. These second citizenship programs are also known as the second passport programs. St. Kitts Citizenship by Investment serves a similar purpose and also includes a due diligence procedure. Grenada second passport program was initiated to benefit the island but was brought to a halt. Through these programs for economic citizenship, the government is able to raise funds for various development programmes.
One of the possibilities that arises from foreign accounts and can be listed as an advantage of holding foreign account on an offshore company name is access to sophisticated wealth, fiscal and insurance facilities and services in overseas or international banks. Such services may not be available at domestic banks, or even if they are, may not be available on the scale that the client may require. The fact that international and offshore banks are particularly designed with asset protection, wealth planning and tax efficiency in mind makes it possible to tap into financial and human resources that are able to provide one on one tailored financial services to international customers. Being able to utilize these tools by simply setting up a foreign account is another advantage of holding foreign account on offshore company name.
In strengthen a company’s international business and trade, building networks and accessing the right resources are essential. Foreign accounts create physical presence for companies in a country in which business is done despite of the fact that business may only be done through email consultancy and gives business associates a sense of security knowing that the company has a ‘locally’ invested interest. This advantage of holding foreign account on an offshore company name is also affordable, as it eliminates the need to transfer funds internationally whether through a bank or other financial institution and reduces fees and charges which typically would increase based on the sum of money being sent. A company foreign account on an offshore company name therefore provides convenience, is time saving and economical. An added advantage to the latter is the ability to establish physical presence internationally, since common banking interests, in terms of using the same offshore bank for example, gives companies ad entrepreneurs some form of common ground.
But, foreign accounts do have one distinct benefit if the account is on an offshore company name, and that is privacy. An individual may be able to trade and transact without necessarily having to immediately disclose his identity as owner of a given company. The need to protect one’s identity may arise for various reasons, none of which however, stand in opening a foreign bank account since all banks are required to operate according to Know Your Customer and anti-money laundering regulations. The few banks internationally that offer numbered foreign accounts still require personal details and provide anonymity only in terms of the employees in the bank who are able to access such information. Privacy and confidentiality are therefore a major advantage of holding foreign account on an offshore company name, and these can be achieved effectively.