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Featured Offshore Banking Business – How Do They Work?

Discussion in 'Offshore Company & Bank Account Guides' started by Admin, Jun 20, 2016.

  1. Admin

    Admin Forum Moderator The Forum Cleaner

    What do you do when the banking system in your native country is flawed? Or when the financial institutions in your home land cannot give you certain guarantees about the future of your money? Or if the government agencies in place are corrupt unstable organizations ready to go on a witch hunt at a whim?

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    In all of such cases the answer to the problem lies with an offshore banking business.

    What is an offshore bank?
    An offshore bank is simply a bank that is focused towards accepting deposits only from foreign individuals and businesses. A good example of this is the countless banks in Bahamas, Belize, Panama, Cayman Islands, Mauritius and Switzerland that offer a great many financial advantages to the people and entities that choose to bank with them.

    Very often the banks involved in the offshore banking business deal in multiple currencies that are not the currency of the location from which they operate. As these banks do not offer their services to the residents of the country they also do not fall under the monetary policy that governs the financial sector of the country, allowing them to offer many different financial advantages to their customers.

    It must be said that there is a certain stigma attached to the offshore banking business and a majority of people just assume that they are solely used for illegal purposes but that is not true at all. The reality is that a vast majority of people who have an offshore banking account merely have that, as they want a stable environment for their money to be parked into. Others like the idea of lower taxation while pretty much everyone is attracted to the higher interest that they can generate on their savings when they are dealing with an offshore banking business.

    People also mistakenly believe that you need to be super rich to open an offshore banking account. The truth is that anyone who wants to safeguard his or her cash is eligible to open a offshore account.

    Secondary advantages of an offshore bank account
    Plenty has been said about the tax that you can save, the interest that you can earn and the privacy that an offshore bank account provides you with. At the same time there are a whole lot of other advantages that you can enjoy with an offshore bank account.

    Firstly, when you are banking in a jurisdiction where there is much more political and economical stability than your home country, then you are safeguarding the future of your heard earned cash. Just look at what happened in Zimbabwe in the 2008-09 where hyperinflation caused the currency to loose whatever value it had. They even had to print a currency note with an almost comical value of a 100 trillion Zimbabwe dollars and in 2009; the government completely stopped printing any new money.

    This is what can happen in a politically corrupt scenario that sooner or later makes the economy unstable. The Zimbabweans who had money saved in offshore accounts in other currencies were able to retain their savings while unfortunate persons who held Zimbabwean dollars went from riches to rags.

    Since an offshore account allows you to hold your money in other currencies like Euros and Dollars, this also provides you with a chance to invest in foreign currencies. This is something that will not be possible in your home country as governments usually put strict regulations on dealing in foreign currencies. It is only with an offshore banking account that you can enjoy this benefit.

    Putting all of your money in a bank account in your native country is like putting all of your eggs in one basket. It is like a business that has only one client. This is nothing but a recipe for disaster. A government can freeze or confiscate your assets at any time for whatever reasons even without having to prove it in court. Even a layman can tell that holding all the money in one place in such a case is nothing but foolish.

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    Opening an offshore bank account
    The fact that opening such an account is an absolute easy process makes this an even more lucrative option. With some jurisdictions, you do not even need to go there in person to open an account. You merely fill a form, send them the documents they need and pay the fee.

    Given the advantages such a venture offers, it would be beyond foolish to at least not consider it. Wouldn’t you say?
     
    DeepDrilling, auric, icecold and 9 others like this.
  2. Gunter

    Gunter Active Member Entrepreneur

    Opening an offshore bank account for a Belize company is that more complicated compared to a Seychelles company, just wondering?
     
    Admin likes this.
  3. Jack Dui

    Jack Dui Active Member Entrepreneur

    Now-a-days offshore banking has created a new era in world economies. Business personal are now looking for offshore banking in different political stable countries to keep safe their own hard earnings.
     
    SasxInc and bonzo like this.
  4. bonzo

    bonzo Offshore Agent Entrepreneur

    I totally agree with you. Offshore Banking for businesses is not any longer about tax evading or to hide from someone but it is about stability in these countries compared to the country where the business is incorporated.
     
  5. SasxInc

    SasxInc Active Member Entrepreneur

    I wonder if Cyprus also in this list. I'm thinking expanding my business to Cyprus. I thing I should do some research about it;)
     
  6. Lyanna

    Lyanna Member

    I'm new to this website and forum and I'm quite amazed how organized things are here especially these threads that gives a huge information and impact to Offshore businesses. Keep up the good work Admins and Community!
     
    Admin likes this.
  7. fireserve

    fireserve Super Moderator Mentor Group Sponsor

    If I were living in Zimbabwe I would try everything I could to get out of the country or at least to get an offshore company setup with offshore accounts all around the world to secure my funds. Well only if I was some of the middle or upper class of course. IF you don't have money there you are exposed!
     
    Admin, taxman and SasxInc like this.
  8. Brittni657

    Brittni657 New Member

    Do they provide user details suppose if they come under any crime?
     
    Admin and vitomerchant like this.
  9. vitomerchant

    vitomerchant Offshore Agent

    Does someone know what it takes to get a banking license like the one Euro Pacific Bank has? it seems to me that these guys came easy to it!
     
    moneytreasury likes this.
  10. taxman

    taxman New Member

    I don't believe that someone from Zimbabwe will have a chance to open an offshore account, they may properly be on some sort of International blacklist!
     
    fxmaster and moneytreasury like this.
  11. deadpool

    deadpool Active Member Entrepreneur

    One of the most overlooked benefit is the option to invest in multiple currencies. At times its the diversification you badly need.
     
  12. moneytreasury

    moneytreasury New Member

    Yes investment with an offshore company and bank account is working very well for people. What you do in profits is not taxed at all and if done right no one know what you actually earn!
     
  13. fxmaster

    fxmaster Member

    No the banks that don't require you to go there are the best and fastest to work with. Even if they require some more documents they are worth to use.
     
  14. Admin

    Admin Forum Moderator The Forum Cleaner

    It is the exact same procedure. Same documents and information is required!
     
  15. Admin

    Admin Forum Moderator The Forum Cleaner

    With something illegal going on no bank in this world will be able to protect your identity.
     
  16. icecold

    icecold Member Entrepreneur

    What's the best bank to open an offshore account? I don't mind to travel or do a Skype call with the bank? I would like low fees and Internet banking + debit card as a requirement!
    Easy account opening!!

    Any suggestions please?
     
  17. Micky

    Micky New Member

    I am interested in this also. Any suggestions anyone? Or even the prepaid CC's I have read about.
     
  18. auric

    auric Offshore Agent Mentor Group Sponsor Business Angel

    Cyprus and Mauritius are the best banks if you ask me to open an account with and where personal visit is not required.
     
  19. DeepDrilling

    DeepDrilling Mentor Group Mentor Group Sponsor

    I was wondering. Now with all the changes going on and the new AOIE that comes into play from this and next year, is offshore banking dead or has it still a place for some business purposes?