Similar to onshore banks, the offshore bank offers two kinds of accounts. One is a personal bank account that is in your name. The other option is to open a business account. Depending on the location of this account and rules of that specific offshore financial center, you may or may not need to divulge the full members of the company when creating this account. In the event that you do not wish to divulge this information fully but are using a country that requires it, the use of nominee services is utilized. Financial Guardian can provide these nominee services upon request.
The foreign bank account can serve many purpose. It can used for account management within the company. This includes payroll management and distribution of salaries for your employees.
It can also be used to receive money from customers in a variety of currencies from a variety of locations without the usual impediments experienced by the onshore bank.
Conversely, it can be used to send money in a variety of different companies in a variety of locations. This may mean that these suppliers would be receiving payments in different currencies—be it euros, dollars, yen…all without any issue from the bank itself.
When used in conjunction with offshore incorporation, the offshore bank account is a key tool for your new business venture’s success. One important factor to think about is location. If your major customer base is located in one geographic region, then it may be wise to set up your offshore bank account in that location as well. This will simplify the process for your suppliers and customers alike.
The costs of maintaining an offshore account ore often surprisingly reasonable. With all of the above benefits, it’s a crucial decision that could mean rewarding success for your business.