Opening an offshore bank account is as simple as opening an bank account locally. The only difference that you find is the services provided by the bank and where it is located. Any average person can open an offshore bank account easily. But before you open such account you need to get a research done and know some things related to offshore banking. In this article we will tell you most of the things to know before and while you open an OFFSHORE BANK ACCOUNT.
What should I know before I open an offshore bank account?
- While you open the account you should be the right frame of mind and apply with a proper understanding. Get your research done, try to get more and more information about Offshore banking from the internet or related books, also you can consult whom you trust already using Offshore Merchant Account or from trusted offshore banking service providers.
- Even if opening offshore bank account is not expensive, you should always be aware of the transaction and other costs, however these costs are hidden costs. But be aware that those fees are proportional to the service you require.
- Offshore banking is totally legal, considered you open and set up the account in the right way. It is quite wrong to blame the whole offshore banking system just because of a very few people who use this service illegally like tax evasion and money laundering. So set up your account correctly with the help of trusted service providers and experts.
- As we read in the previous point offshore account can be illegally used for tax evasion so it is very mandatory to inform your local tax authorities about this account.
As we read earlier opening an offshore account is just the finishing the design with a cherry of the cake, what matters is the whole cake which included plenty of research and advice’s from lawyers, offshore experts, tax planners and authorities, offshore agents as one small error can spoil the whole cake.
How to Open Offshore Bank Account?
Similar to the local bank account opening requirements, offshore banks ask for basic information like name, DOB, address, occupation and citizenship. For the verification of this personal information you are asked to submit government issued identity proof.
This additional requirements are required for the verification to avoid the above mentioned illegal activities like tax evasion, money laundering.
For this you are asked to submit past transaction statement of your personal bank account or business account. Most of the offshore banks also ask you to submit document stating the source from where you deposit funds.
1. If the deposit source is the salary, you need to submit salary slip of the same.
2. If deposit is related to business transactions, you need to submit the documents related to it.
Offshore banks offer you the make a choice of the type of currency in which you need to hold you funds in.
Deposit in Offshore Bank:
Deposition in the offshore being international transaction as a result wire transfers are done.
Withdrawing from Offshore bank:
For the convenience of the user offshore banks offer various methods for withdrawal of funds. Like debit/ATM cards with which you can access all funds globally.
the outline all this is Offshore banking is very safe and risk free. Considered
you use it wisely.
Offshore merchant accounts are commonly used these days. By setting up online businesses, merchants have to interact with customers across the world. Regardless of the size or type of online business, merchant accounts and credit card processing services is a must for each one of them.
Various financial institutions offer different types of merchant accounts. Among them, offshore merchant account is most commonly used by E-commerce merchants. One of the benefits of offshore merchant account is that it does not require huge initial set up cost which makes them popular with small businesses in particular.
Different merchant account providers offer different setup charges. But most of them charge zero for initial set up which is a huge benefit for small businesses.
Offshore accounts obviously operate outside your own country and since you would be out of the tax regulation laws of your country, you will be exempted from paying taxes. For small businesses and even online business start-ups, the reduced burden of additional costs is a huge relief.
All types of businesses, whether large-scale or small-scale, can be victims of frauds and scams. Start-ups and small businesses especially cannot afford to be tangled in frauds and losses. Unfortunately, these merchants are more vulnerable and can be conned easily. This makes offshore merchant accounts hugely beneficial as merchant account providers take necessary steps for the safety and protection of their clients from online frauds.
Businesses with offshore accounts have to deal with transactions done with different currencies and all kinds of credit cards all round the world. This translates into higher chances of expanding your customer base. Along with clever business operations, these small businesses have the potential of boosting sales and profits. For small businesses that do not have to invest much into these accounts, this is a massive growth opportunity and benefit.
Advent of technology bought about a meteoric rise in e-commerce and online business models. Now, daily online credit card transactions have become a norm.
E-commerce merchants are more likely to be exposed to stricter rules and regulations. However, there exists an option for business that operates business across the world to legally position itself in a jurisdiction that favors it the most. Simply put, an offshore merchant account is an account that allows a business to accept credit card payments through a bank that is located in a jurisdiction outside the country where the business operator lives and works.
Offshore banking is even popular with some of the biggest global companies such as Apple and Google who set up offshore subsidiaries in low or no tax jurisdictions and serve different segments of their global market.
Merchants are now taking advantage of the various benefits that an offshore bank account has to offer. The possibility of expanding business and reaching a world-wide customer base possibly being the biggest positive factor. So what exactly makes offshore merchant accounts so favorable instead of a domestic merchant account?
Let’s take a look at some of the advantages –
- Wide selection of banks
- Hassle-free process and Quick Approval
- Multi-currency transactions
- Low or No Tax burden
- Tax-free offshore profits
- Major credit cards are accepted
- High volume transactions are allowed
- Easy approval of high risk businesses
- Real time updates available
- Safe and secure payment gateways that can be easily integrated with your e-commerce business
Any astute merchant will surely want go offshore and reap the many benefits that an offshore merchant account has to offer!