The advantages of opening an offshore bank account are several and varied. The most obvious advantage is protection of funds and assets in offshore centres which are perceived to be safe havens. Other reasons include utilisation of funds to capitalise a new overseas business and possible tax savings on interest of funds on deposit. Lets first explore the distinctions between the advantages of opening an offshore personal bank account and an offshore corporate bank account. The advantages of opening an offshore corporate bank account are several fold:
> There is no need for the beneficial owner or signatory of a corporate offshore bank account to visit the bank in person.
> There is no requirement by the bank to disclose the signatories or beneficial owners of corporate offshore bank accounts to
any authorities. (except in the case where there is a US entity or person connected with the corporate account under FATCA).
> A corporate offshore bank account may have more than one beneficial owner or signatory.
> The directors and shareholders of an offshore company are only legally liable for debts amounting to the amount of paid up
capital. It is often the case that offshore companies have paid up capital of just a few hundred pounds.
The advantages of opening an offshore personal bank account will depend on the jurisdiction of the bank and the country of your home residence. Within the European Union, banks under the EU Tax Savings Directive are required to Levy a withholding tax on interest received from private bank accounts or exchange information about personal bank accounts with other EU countries. Under FATCA banks are required to disclose to the US authorities any US entity or person holding an account. Under the Common Reporting Standards (CRS), banks and licensed registered office providers will not exchange information with any other authorities concerning the beneficial owners of trading companies or commonly referred to as 'active companies'.
Conclusion: For trading and confidentiality reasons a corporate offshore bank account offers more business advantages for one or more individuals. Read More about Offshore Bank Accounts
Please see the links below to learn more about the workings and advantages of an offshore bank accounts and other topics,
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