What is Offshore Banking?
Offshore banking is holding a business or personal account in a country other than the one in which you live, for example, if you live in Dubai, you may want a bank account in the UK because your company does a lot of business here. That would be an Offshore Bank account for your business. You might also wish to hold a personal account in the same location, to make transferring funds to yourself easier. A question that is commonly raised is…isn’t that illegal? In short the answer is no. You may hold a bank account anywhere in the world, it does not need to be in the country you live in. The only time it becomes illegal is when you try to hide your account from tax authorities.
There are many benefits to banking offshore. Your bank account is essential, whether you are running a business, or you are running your personal life. Making sure your money is secure, maximises your profits and is accessible is essential.
Banks are not able to disclose your bank account details or indeed whether you hold a bank account with them to anyone other than government bodies and law enforcement agencies. This means that if you have put together a business structure to protect your identity, perhaps by using nominees, your bank will not be able to disclose the account holders to clients, spouses or any other 3rd party. The only time these people will know if you have an offshore account is if you tell them.
Offshore banks offer a wide range of investment opportunities. Interest rates tend to be incredibly competitive and arranging your investment with an offshore bank is straight forward. Many Offshore banks also offer a more boutique approach to banking so it is likely that you will get greater support and advice which is in line with your goals and appropriate to your risk profile.
3. Multi-currency Exchanges
Multi-currency accounts area a standard feature with the vast majority of offshore banks. Transfers between accounts can be carried out via the online banking platform offered by all our banking partners. Banking this way offer the opportunity of accessing excellent exchange rates and means you can pay staff and suppliers in the currencies they require. You can also accept payments from clients in their local or chosen currency making global trading exceptionally simple. Holding money in multi-currency accounts multiple affords you the luxury of converting to your currency when the exchange rate is most favourable.
4. Create a Global Perception
The locality of your bank account can provide a different the perception to potential clients, make your business appear larger and more successful to your clients and suppliers.
5. There is often no need to travel
The world may be restricted in terms of travel at the moment, but this need not be a barrier to opening an offshore bank account. Many Offshore banks allow us to administer applications remotely so there is no need for our clients to travel to the bank in person.
The media-imposed perception of offshore banking could not be further from the truth. The reality of the modern world is that we are free to bank wherever we would like. If that means that we are getting better interest rates, saving money on bank fees when paying suppliers or simply making our holiday spending money go further, why should we not maximise this opportunity. Banking offshore is 100% legal and the advantages for business should not be underestimated.