Advantages of Opening an Offshore Bank Account

Offshore bank accounts are designed to offer flexibility and facilitate global transactions effectively. They are particularly beneficial for expats as they can access their accounts online, over the phone and at any ATM anywhere in the world. However, they also provide significant benefits to high net worth individuals and corporate organizations.

1. Tax Efficiency:Most offshore banking locations have low or no tax at all. This can result in considerable savings on taxes on interest earned. Remember that while the offshore location may not charge any tax, you own country may charge taxes on global income. Be sure to disclose all details as required to avoid fines or even imprisonment.
2. Higher Interest Rates: Most offshore location offers higher interest rates than other countries. This can be significant for even low-value accounts.
3. Robust Banking Systems: Offshore locations with a history of stability and low debt often offer much more security from bankruptcies and insolvencies that are common in other banks all over the world.
4. Asset Protection:Any government agency cannot seize offshore locations.It also offers protection from frivolous lawsuits that can eat into your domestic accounts.
5. Privacy: Most countries around the world allow you to maintain privacy if the offshore account has less than a certain sum of money. For high value accounts, it is usually mandatory to report the same to your tax agency to avoid breaking the law.
6. Lower Risk: As governments around the world are spending more aggressively, you are introduced to a lot of risk in domestic banks. An offshore account offers you immunity from domestic political and economic upheavals and natural disasters.
7. Global Medical Coverage: Having money in an offshore account guarantee that you can pay for medical treatment anywhere in the world. Even if you need to leave your country for a procedure or find yourself in need of emergency care, offshore accounts allow for easy access to your funds.
8. International Expertise: Offshore banks are well versed about banking in low tax jurisdictions. The experience and expertise of your account manager can be a significant help to an individual or a company.

Offshore banking gets a lot of negative media coverage as it has often been used for illegal and immoral tax evasion or money laundering. However, when used legally, in compliance with all domestic and global laws, it can be a convenient and valuable way to manage your money.

Know More about Offshore Company Formation in Seychelles

A Seychelles International Business Company or IBC is an extremely popular choice for businesses and individuals looking to from an offshore company. This IBC is designed for facilitating international business with minimal red tape. Setting up the IBC is incredibly fast and efficient and often takes only 24 hours. Here is a list of some of the primary features of a Seychelles IBC.

 

• Zero Tax: A Seychelles IBC is not liable to pay any tax or duty on income or profits. A shareholder of the IBC is also exempt from any tax on the income from the company. The IBC is also exempt from stamp duties on transfers of property to or by the company, or any other transactions related to shares, debt obligations, and other security instruments.
• Privacy: All personal details and identities of beneficial owners, directors and shareholders are not part of public record. The only public records from the time of registration are only mandatory documents for the formation of the IBC ­­– the Memorandum of Association and the Article of Association. None of these documents are required to have any information about the beneficial owners, shareholders or directors. Only in exceptionally rare circumstances, a government authority may request information from a registered agent.
• Confiscation Protection: If any foreign government confiscates or seizes shares or other interests in a Seychelles IBC, a Seychelles court order can be obtained to disregard such attempts and continue to respect the rights of the shareholders.
• Low License Fees: The government fee for a Seychelles IBC at the time of registration is only $100 besides a $100 annual fee thereafter regardless of authorized or paid-up capital, the number of shares and other factors. There is also no paid up capital requirement at the time of registration.

 

Other benefits include a flexible corporate structure that allows for non-resident or corporate directors and the ability to issue shares in any form.

 

In addition to the benefits, there are also some restrictions on a Seychelles IBC. These include:

• It may not conduct business in Seychelles or own real estate, but it can enter into contracts with lawyers and lease property for office use.
• It may not engage in banking, trust, insurance, or re-insurance business. These require a special license and the company thus formed will not be an IBC, and not subject to the same rules.

 

All IBCs are required to maintain accounting records.