A business organization is a conversion of an idea that gets implemented to generate profits by providing goods or services to the ultimate consumers. Establishing an offshore company in Dubai is a great way for entrepreneurs or working professionals who want to enter the business world of international trade. During a company establishment, it is preferable to open an overseas account to ensure the functionality of business and helps in tax playing. Choosing a right bank account is the first step towards business success. Let’s see how it works.
What is an Offshore Bank Account?
The term ‘offshore account’ basically means a bank account that is outside one’s home country. Any individual or by a business entity holding a bank account in the offshore is regarded as an offshore bank account. Such accounts offer legal and financial advantages to a great extent to its respective clients that increase the demand for holding such a bank account. There exist two types of offshore bank account:
- Offshore bank account for individuals
- Offshore bank account for corporates
Benefits of an Offshore Bank Account
An offshore bank account generally provides the following features:
- Absolute confidentiality
- Wealth management services
- Enablement of quick money management
- Easy transfer of international payments
- Flexibility to use multiple currencies
Online Offshore Bank Account
This is an easy financing flexibility provided by the offshore bank accounts to ease the financial transaction process. It provides the ease to manage and deal transactions from any corner of the world and helps the client to control their finance.
Features of an Online Offshore Bank Account
- Available 24/7
- Speedy transactions
- Available at client’s fingertips
- Quick service
Financial Services Provided by an Offshore Bank
An offshore account presents a wide variety of financial services that include:
- Savings account
- Corporate administration
- Fund management
- Trustee services
- Loans (both commercial and personal)
- Global debit and ATM cards
- Trade finance
- Letters of credit
- Trade finance
Benefits of Opening an Offshore Bank Account
You must be wondering as to why open an offshore bank account or what benefits would you be able to avail by opening an offshore account? Well, the answer to your question lies below:
According to research, there are more than 14,000 offshore banks in the world. The reasons for an entrepreneur to open an offshore bank account are as follows:
- Protection of savings
- Little or no tax
- Asset protection
- Greater privacy
- The flexibility of currency diversification
- Generation of higher returns
- Privileges and benefits from foreign exchange services
- Easy money transfer
- Dilution of political risk
- Diversification of investment portfolio
How to Open an Offshore Bank Account?
Opening an offshore bank account involves the following steps:
1. Complete KYC
The KYC process involves four test proofs for clearance: (1) Proof of Identity, (2)Proof of Residency, (3)Credit History Report, and (4) Proof of Wealth.
2. Pay Initial Deposit
Once the KYC process gets done, an initial sum needs to be deposited. It ranges from $350 to $1,250.’
3. Set Up a Corporate Account
For a corporate account, the following additional documents are required to be submitted:
- Memorandum and Articles of Association
- Certificate of Incumbency
- Certificate of good standing (attested)
- Client profile
- Company brochure and description
- Bank documents for last 6 to 12 months
- Certificate of documents by the Ministry of Foreign Affairs
The maximum duration to open a bank account is 3 weeks. Once the account is activated, you would be receiving online access.
Best Countries to Open an Offshore Account
As you have seen the procedure of opening an offshore account, let’s have a glance at the best destination to open such an account. The 8 best countries to open an offshore bank account are:
- The Cayman Islands
- The UAE
Thus, you have got a clear idea about the importance of holding an overseas bank account and the best place to start with. Be it a start-up, or an established business, your business, and hard-earned money need to be secured in the best possible way and opening an overseas account could raise the security, and ease the process.
Need an Offshore Bank Account in the UAE?
If you are running a business in the UAE, and, for some reason (like nature of business activity, nationality constraints, etc.), you aren’t able to get a corporate bank account for your company in the UAE, we have good news for you!
You may opt for an offshore bank account instead. It provides you the same level of accessibility and benefits, plus more!
Commitbiz is the approved introducer for ABC Banking Corporation, Mauritius. It provides the following facilities:
- Minimum account opening deposit of just 5,000 USD (or equivalent)
- Multi-currency accounts
- No statement or ledger fee
- Free internet banking (both viewing and transaction)
Note: You need not get your documents attested for a second time for the offshore bank account.
To open your offshore bank account, do contact us - we’d be happy to assist you!