Frequently Asked Questions about offshore companies

A bank account is a monetary account with a banking institution reflecting the amount of funds belonging to a particular client. A bank account may have a positive, or credit, balance if the bank accepts money from the client, or a negative, or debit, balance if the client owes money to the bank. Broadly speaking, accounts opened to maintain a credit balance are called deposit accounts, while accounts opened to maintain a debit balance are called loan accounts. The names of some accounts derive more from the function of the account than from the nature of the account balance. Bank accounts intended for a large number of transactions may provide both credit and debit facilities and are therefore difficult to classify clearly as one of these types. Such operating (current) accounts have different English names in different countries: in the USA and Canada they are “checking accounts”, while in the United Kingdom they are “current accounts”.

In the broad sense, an offshore bank is a bank located in a jurisdiction or country different from the jurisdiction or country in which the bank account holder resides.

In a narrower sense, it is a bank located in a region whose official authorities do not have tax agreements with your country of residence and do not provide information about the account holder or account movements in response to requests from the judicial authorities of your country.

Classic offshore banks are banks located in Caribbean countries and other island states where offshore companies and tax-exempt international business companies may be registered.

In simple terms, an offshore bank account is an account with a bank located outside your country of residence. Such an account is usually located in a low-tax jurisdiction and provides certain financial and/or legal advantages to the account holder.

When opening an offshore bank account and carrying out subsequent transactions through it, the correct jurisdiction must be selected. Most offshore jurisdictions follow appropriate directives aimed at ensuring the safety and confidentiality of deposits. At the same time, some jurisdictions see their advantages in taxation, while others focus on confidentiality, and so on. Although all jurisdictions provide a relatively high degree of confidentiality and security, you should still carefully consider your objectives and only then choose the appropriate jurisdiction.

Any person can open an offshore bank account. It is widely known that offshore banking services have for many years been used by both individuals and legal entities throughout the world.

There is no single answer to this question, as everything depends on the client’s individual circumstances; in addition, there is a wide variety of account types, each offering its own possibilities and advantages. For example, foreign citizens living and working abroad who have an account with an offshore bank may benefit from tax advantages because interest income on such an account is not taxed. If you wish to move your savings and investments offshore, you may further reduce your tax liabilities in your country of permanent residence. Other advantages, not necessarily limited to expatriates, may include asset protection, estate planning, secrecy and confidentiality, higher returns on capital, low taxation, the ability to conduct active business abroad in low-tax or tax-free jurisdictions, and global access to assets and income.

You may benefit if you intend to move abroad or retire and live abroad, or if you already live in another country. You may also benefit if you own real estate or have a business in several countries. If you live in a country with a politically or economically unstable environment, you may place your assets offshore in order to protect them more effectively.

Yes. With Internet access, email, fax, telephone and an ATM, you can always access your funds just as if you were using an account with a local bank. You can easily and quickly transfer your money to any region of the world using electronic payment transfers and thus conduct banking transactions effectively regardless of your location.

Some countries, for example the USA, require residents to declare their income regardless of where it is earned, so tax is paid on all of your income. In certain cases, income of a company that you control may also be taxed. For this reason, most countries do not take into account where you conduct business, invest or hold bank accounts. You are responsible for declaring or not declaring your income to the relevant tax authorities. If you are not a resident of a country that requires tax declarations, you do not necessarily have to declare income you receive.

In principle, you do not need to visit the country in which you intend to open an account or travel there to carry out banking transactions. Most offshore accounts offered by legitimate organisations allow you to conduct all of your banking activity by Internet, email, post, fax or telephone. Moreover, many offshore bank accounts provide full credit-card services and in some cases may also function with debit cards, allowing you easy direct access to your funds at any time. We have information on offshore accounts and investment opportunities in more than 60 countries worldwide; to obtain the information you need, tell us your requirements and we will provide the necessary information.

Taking into account that some banks impose restrictions on citizens of certain countries, we can select a bank suitable for your citizenship.

Everything depends on the specific bank and the type of account you open. At some banks and for some account types, an account can be opened with a deposit of USD 1,000, while other banks require a deposit of at least USD 100,000.

Accounts are opened in all major world currencies, including Swiss francs, pounds sterling, US dollars and euros.

Most banks require identity documents, for example your duly certified valid passport and one or two copies of your latest utility bill confirming your current residential address. Naturally, the bank may request other supporting documents as required and at any time. In addition, some offshore banks may require a reference from the bank you currently use — again, this depends on the location of the bank.

Usually this process takes from 2 to 7 days after you provide the required documents and complete the relevant bank forms, but it may vary depending on various factors. However, we undertake to process your application as quickly as possible.

As the authorised signatory, you are the only person entitled to control your account. Only you can decide to whom authorised signing rights over your account should be granted, if required.

Yes. Unlike many other companies, we provide a 100% guarantee of account opening, but only if you order the complete package of services including fiduciary service.

If you personally act as the account signatory, we provide an official introduction and consulting services. Because we are familiar with bank requirements and maintain relationships with banks, we help you select the appropriate bank, choose the account type and simplify the application process. We also provide all necessary information, application forms and other materials required to open your bank account. If any bank rejects your application, we can always offer another bank as a replacement in order to meet your banking requirements.

In such an extremely unlikely event, we will either submit your application to another bank without any additional charge or, at your request, immediately refund the fee you paid.

If you do not wish to take risks, we are always ready to provide companies with accounts already opened at first-class banks such as Barclays, UBS and Nordea, as well as professional account management services guaranteeing 100% acceptance by the bank for servicing your business.

Absolutely. We can recommend recognised banks with a good reputation and ratings from Moody’s and Standard & Poor’s, operating for 100 years or more, holding billions in assets and having demonstrated the reliability of their banking services in practice. After accounts are opened at a bank recommended by us, the funds of an individual or corporation will be safe and securely protected.

Regarding declaration of your assets and savings income, the 2005 EU Savings Tax Directive may limit the degree of secrecy available to you if you conduct banking activity or reside in one of the countries subject to this Directive. These countries include: Andorra, Anguilla, Aruba, Austria, Belgium, British Virgin Islands, Cayman Islands, Channel Islands, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Isle of Man, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montserrat, Netherlands, Netherlands Antilles, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turks and Caicos Islands, and the United Kingdom of Great Britain and Northern Ireland. In other words, the 2005 EU Savings Tax Directive is an agreement between EU Member States on automatic exchange of information concerning clients who receive savings income in one EU state while residing in another EU state. This provision is known as the “automatic exchange of information option” and is the ultimate objective of the Directive. If the Directive does not apply to you, your assets and any income earned on them are protected by a certain degree of secrecy. At the same time, although most offshore jurisdictions provide very high levels of confidentiality, they cannot guarantee absolute secrecy because all financial institutions worldwide are required by law to report suspicions concerning serious criminal activity such as terrorism. If you are not a terrorist or serious criminal, you can feel completely safe. All your personal data are protected by modern data-protection legislation, and breaches of confidentiality and unauthorised disclosure may give rise to civil and criminal proceedings. No offshore bank will act against its own interests or violate the law. If you wish to avoid the effect of the EU Savings Tax Directive and achieve an even higher degree of guaranteed anonymity and confidentiality, you may use other offshore structures such as International Business Companies (IBCs) and/or offshore trusts.

Exactly. Most banks offer online banking services, giving you direct control over your money from anywhere in the world at any time. You do not need to visit the bank in person. You can manage your funds remotely from wherever you are. You can also send instructions to add to, sell or exchange a wide range of international investments in real time.

Yes. Most banks can issue international debit or credit cards in pounds sterling, US dollars and euros.

Our advisers can provide assistance and recommendations on matters ranging from investments to life insurance, including savings prospects, protection of mortgaged property, pension plans and estate planning.