Offshore Business Bank Account

For those who decide to incorporate their company offshore the next logical step is to open an offshore business bank account, but it’s also worth bearing in mind that even an onshore or domestic company can benefit from establishing an offshore business bank account…

This article examines the main advantages of banking offshore and the account types most suitable for various business requirements.

Those who have business interests in more than one country in the world, who import from one country, export to another, those who have suppliers and resellers overseas or get paid in multiple currencies could all benefit from the centralization of all their business banking requirements through the establishment of one offshore business bank account structure.

The general benefits of banking offshore are simplicity, privacy, confidentiality and in certain circumstances there are taxation saving advantages as well.  The majority of banks specializing in the provision of offshore bank accounts provide a greater degree of service to their customers as well as offering a greater degree of flexibility from an account structure and it can be this flexibility that most benefits a business bank account holder.

Just imagine how much more streamlined and easy you would find all your business banking requirements if you could log into one central location and manage your cash flow, pay suppliers wherever in the world they happen to be, track payments received and sent in each and every major currency, have instant access to all you account details and even manage payroll.  An offshore business bank account can offer you all these features.

Just as with any domestic bank you can have many different basic types of account for your business needs offshore.  You may require a combination of structures and features and a number of the best offshore banking providers are happy to create a bespoke solution for the larger business customers.

Account types you might benefit from include: -

A current account for all of your daily transactions where you keep a relatively small amount of money on deposit that will attract limited interest rates.

A demand deposit account where larger sums of money can be kept and attract better interest rates but which can be accessed immediately should circumstances dictate.

A term deposit account where larger sums of money can be kept which will also attract better interest rates than a current account but where you have to give your offshore banking provider a certain fixed amount of notice for withdrawal.

A foreign currency account for any monies you receive from overseas.

A loan or mortgage account for money you need to borrow and also a merchant account so you can accept debit and credit card payments.

If you’re considering opening an offshore business bank account speak to your accountant about whether there are any additional tax saving and asset protection advantages available to you by moving your banking offshore and be sure to do your due diligence on any provider you’re considering giving your banking business to.  Finally watch out for high bank charges that some offshore banks charge business bank account customers - be prepared to negotiate hard to get the account and fee structure that suits your requirements.