When one decides to open an off shore company, it is a strategy to primarily globalise its operations. A business which foresees more local transactions will opt for a local bank account. Opposed to that one which anticipates more foreign transactions would preferably choose an off shore account.
Some globally well known identifiers of off shore corporations are:
An offshore company is one which is registered in a country or jurisdiction other than that of the clients own home country, whereas a local account refers to a home nation bank account. The reason for opening such a company would be due to the various benefits afforded such as:
Many jurisdictions also allow profit remittances at very little or no costs. Contract sanctity, restrictions fewer comparatively, as well as property rights security are such other benefits of an offshore company.
All offshore companies, have directors for managerial purposes, annual renewal of licences to operate as well as the requirement to maintain statutory records in the prescribed format, however some jurisdictions do not make auditing of same mandatory.
There are also various companies which require a business associate to have local bank accounts. Hence, in order to participate in the contract for business, in a foreign nation, one may find that a local bank account is an essential eligibility requisite. Foreign banks are also known to offer better diversification of currency exposure as well as the fact that many jurisdictions offer healthier banking structures.
Once the need is known, the obvious query is the type of options one has as far as kind of off shore account which can be considered. It could be a multi currency, business, private, international, premium or plain vanilla account. The basic two types are:
Many countries claim off shore company formation suitability, such as:
Hong Kong , Anguilla, Seychelles, Barbados, Belize, British Virgin Islands (BVI), Turks & Caicos Islands, Brunei, Delaware (USA), Cayman Islands, Switzerland , Cook Islands, Malaysia(Labuan), Singapore, Marshall Islands, Mauritius, St.Kitts, St. Lucia, Nevis,St. Vincent and the Grenadines, Vanuatu.
A common misconception persists that such an account is created for stowing away illicit money or tax evasion. This is untrue as this kind of a company is a completely legitimate option for securing enhanced asset protection and tax recompenses.
Online Offshore Company Formation, Incorporation And …