Why can offshore accounts be used?
Posted On 17.09.2019
Opening an offshore account is one of the services for legal support of a business. This kind of service requires the highest possible level of trust between the parties, as well as customer confidence in the competence of the law firm and in maintaining complete confidentiality of any information. Therefore, it makes sense to apply only to companies with many years of experience in the field of legal support of business, which put customer interests first and have a high reputation in this market segment. An example of a reliable company in this industry is https://rakoffshoreic.com/.
How to open an offshore account for an individual
For private individuals, opening an account with an offshore bank is primarily a protection: from an unstable economic situation or the collapse of the banking system in their home country, from seizure of assets, unforeseen situations in the form of loss of funds abroad, from disclosure of data on the material condition of a citizen, and so on. The most common reasons for opening an offshore account by individuals:
- You can store funds in a reliable bank.
- Deposits are available in a more stable currency than the usual rubles, dollars or euros in our country.
- Permanent access to money is possible from anywhere in the world.
- Inspecting organizations provide minimal control over expenses (or it is completely absent).
As a rule, in order to open an account with an offshore bank, a private person needs a standard package of documents:
- identity card (foreign and internal passport);
- a completed questionnaire describing the purpose of opening an account, planned operations and annual turnover;
- papers confirming the source of funds;
- contact details.
This list may expand depending on the bank and its location. Of course, all documents must have a notarized translation into the language of the country in which the account is opened. The process of data verification and full processing usually takes up to seven weeks. Many organizations do not even require a personal presence, all documents can be submitted remotely. However, an offshore account cannot be opened anonymously without identity documents – this contradicts the basic principles of the banking system.
Opening an account in an offshore bank for a legal entity
Taxation is becoming a real problem for many companies. We will not deny the need to pay all assessed contributions, but do not forget that every citizen has the right to reduce the tax burden by any legal means. Registration of a legal entity in a country with low taxes or their absence is one of such methods, and opening an offshore account to serve the company can be considered a procedure necessary for opening a company. In addition to the usual support, an account allows you to:
- participate in international transactions;
- make investments in foreign projects;
- protect money from arrests, “freezing” and other things.
For registration you will need the following package of papers:
- constituent documents;
- company charter;
- information about the leaders and owners of the company;
- confirmation of the source of funds.
It is worth remembering that under international law, banks are required to combat money laundering, so the legality of the source of income is one of the most important aspects when opening an account. In addition, banks are quite strict on the principle of “know your customer” and require full disclosure of information on the actual owner of the company. Sometimes the company must also provide financial statements, confirmation of the experience of the leader, a business plan. As a general rule, the more authoritative and larger a banking organization, the more information about the client it will need.