If you’re bankrupt or you have a poor credit record and you need to set up a business through which you can continue to trade or a business bank account into which you can accept client’s funds, it can be impossible sometimes to get the tools in place to allow you to rebuild your financial and your business life.
If you find yourself in this difficult situation we understand that it can put additional strain on you emotionally speaking as well. In the past we have received emails from reader who ask ‘I’m bankrupt, can I bank or do business offshore?’ In this article we’ll explore the potential offshore scenarios and options available to anyone who finds themselves in a poor credit position.
Here’s an Example Reader Enquiry – “Dear ShelterOffshore, I’ve recently been declared bankrupt in the UK because I never received payment for a series of jobs that I undertook. I now have new work contracts lined up with part payment guaranteed up front, but I cannot start a new business or even get a business bank account in the UK into which payments can be made to enable me to get my working life back on track.
This is having an incredibly negative effect on my personal life as I am depressed by the ‘catch 22’ situation that I find myself in – is there any way out for me via the offshore world?”
In such a situation we would of course always refer our reader to the most appropriate of out qualified strategic business partners because we are not qualified offshore, taxation or financial advisers and as such, any information we give does not constitute advice.
Our Strategic Business Partner’s Proposed Solution – “Having determined the full picture and advised the client of their reporting requirements we can advised as follows - even though the reader in question has been made bankrupt in the UK and cannot therefore establish a new company or open a business bank account in the British Isles that does not mean the client is considered bankrupt anywhere else in the world.
What this means is that it is entirely possible for the client to incorporate a brand new company offshore and open an offshore business bank account which can be used for receipt of up-front part payments in this case.
Such a solution can be established within 48 hours if an off the shelf company is chosen and bank account numbers in sterling, euro or even dollar can be immediately provided.
A solution such as this costs in the region of USD 5,000 and even if the client requiring the solution does not have immediate access to the funds necessary to open the account, there are times when if a first invoice is pending this can be received in escrow, the set up fees deducted from it, the entire solution created and the rest of the funds deposited into the brand new business bank account.”
Why does this simple offshore company and bank account solution work in this scenario?
As stated, even if you are bankrupt or have poor credit history in one jurisdiction, you are free from those labels and the resultant financial stigma in another. What this means is that those who have been unlucky enough to encounter more than their fair share of every day financial knocks and scrapes have the chance to put their lives 100% firmly back on track with a well structured offshore company and bank account package.
This approach is 100% legal.
Absolutely Essential and Critical Words of Advice to Heed!
There are many offshore jurisdictions that can be used by those who are bankrupt or who have a poor credit standing - but the person in question has to ensure that they select a respected jurisdiction where they will then be allowed a business bank account in the name of their new offshore company.
Considerations such as the international reputation of the offshore tax havens chosen should be taken into account – this is because invoices will be raised by the offshore company and payment will have to be transferred to the company’s business bank account. Some offshore havens are generally considered negatively in people’s minds, and any offshore company incorporated in such a haven may be unfairly black-listed meaning you could lose out on potential business.
Another absolutely essential piece of advice to heed is that some offshore company incorporation service providers tell clients not to worry about getting their bank account because the bank account will be sorted out in due course - but then an account never materializes because you have to have an incredibly good and secure, tried and tested relationship with leading banking institutions if you are to act as a client introducer.
In the past we have encountered so very many individuals who have been promised the earth only to receive just an offshore company which as a stand alone entity is redundant. We would never recommend our readers to such an unscrupulous incorporation service provider.
