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Open an Offshore Bank Account: Get All the Details You Need

by Business-Setup.ae

Posted on 28-April-2019

Before we move any further, it is important to understand what exactly an offshore bank account is:

Literally, an offshore bank account refers to a bank account that operates outside your native country. In other words, if you have a bank account in any overseas bank, it will be regarded as an offshore bank account. These accounts offer a lot of advantages, both financial and legal, to their clients.

Some of the features of an offshore bank account are as follows:

  • Offshore bank accounts are very convenient to manage
  • They offer absolute confidentiality to clients
  • The client also receives a variety of wealth management services.
  • Offshore bank accounts offer quick money management services as well
  • You can easily transfer all your international payments to this bank account
  • Offshore bank accounts enable you to operate with multiple currencies

What are some of the benefits of opening an offshore bank account?

As a businessperson, opening an offshore bank account will benefit you in a number of ways:

  • Your savings will remain protected in your offshore bank
  • The banks apply almost little to no tax at all
  • Your assets will remain protected
  • You will also benefit from the flexibility of currency diversification
  • You will get higher returns
  • You can also expect a lot of privileges and returns from exchange services
  • The money transfer process is simple and easy
  • There are no political risks involved

How can you open an offshore bank account?

Here are the steps you need to follow while opening an offshore banking account:

  1. Pass KYC

The KYC process requires you to pass three tests: Proof of identity, proof of residency, credit history report and proof of wealth.

  1. Add Initial Deposit

An initial sum needs to be deposited in the account once the KYC tests have been passed.

  1. Corporate accounts:

Since most offshore bank accounts cater to corporate purposes, some more additional documents need to be submitted. They are as follows:

  • Memorandum and articles of association
  • Certificate of Incumbency
  • Attested certificate of good standing
  • Client profile of the company
  • Details of the company along with a brochure
  • All bank documents for the last year
  • All the certificates and documents by the Ministry of Foreign Affairs

If you are looking forward to opening an offshore bank account, the UAE has been reputed to be one of the best options in the world to do just that. It is important to have an overseas bank account, as has been mentioned earlier. For any new business venture, an offshore bank account will provide added financial security, as well as an opening to embark upon international trade.