Offshore banking, regulated under the international banking license, is one of the safest and secure ways to deposit international funds and wealth.
Earlier, the ground was associated with illegal activities such as money laundering and terrorist financing; however, in the 1980s, the growth has been widely accepted by numerous nations globally. It started providing financial services to non-residents efficiently.
Today, holding an offshore bank account is one of the prestigious moves for any individual that he/she can utilize to safeguard the available finance for the future generation at ease.
This guide highlights the core reasons for offshore fund transfers and the steps required for execution.
Why Transfer Funds to Offshore Bank Account?
Business investors transfer money to offshore bank accounts for the following reasons:
- Safeguard the money from business rivals or ex-spouse
- Expand the existing business
- Take advantage of higher interest rates
- An easy way to enter the international market
- Secure oneself from government bankruptcy
- Avail tax exemptions
What are the Ways to Transfer Funds to an Offshore Bank Account?
When it comes to transferring money to an offshore bank account, one has got various options to proceed ahead, which includes:
1. Using a Wire Transfer
Wire transfer is one of the easiest ways to move the funds quickly and can be done by providing the bank details.
The process involves a transaction fee that might differ from bank to bank across nations. Another added benefit is that wire transferring doesn’t hold any specific amount that can be shared and turns out to be one of the feasible options for transferring significant funds.
2. Convert the Funds into Cryptocurrency
One of the modern ways to deal with international banking is to convert the existing funds into cryptocurrency.
Numerous global banks facilitate the investors to utilize this option as it one of the versatile methods of moving money between nations in a hassle-free way.
3. Prepaid Debit Card
Today, many banks allow investors to transfer the money to an offshore jurisdiction using an online prepaid debit card.
Right from purchasing from an online store, this card can also be used just like another ATM card to transfer fees internationally.
Any one of the three measures can be easily opted to move the funds from one corner of the world to another.
However, one of the essential steps that one has to care is to choose the best jurisdiction and the bank account to proceed with offshore banking.
Few steps that get involved in the process include:
1. Select a specific jurisdiction
One of the first steps to deal with offshore banking is selecting the appropriate jurisdiction for the process. Many offshore jurisdictions across the globe provide different benefits, and one has to be very clear regarding the same before proceeding ahead.
Here’s a list of the popular offshore destinations that you can opt for. It is recommended to proceed ahead under the guidance of a certified offshore business consultant who can assist you in the process.
2. Choose a bank meeting your business requirements
Next, you need to get a complete list of offshore banks that allow business investors to open an offshore bank.
Your business guide can help you in this process as they are professionals and will have a clear understanding of the most affordable and suitable bank account.
3. Submit the papers
After finalizing the respective offshore destination and bank account, submit the basic set of papers to the banking authorities. Generally, the following docs are submitted:
- Duly filled bank account application form
- Certificate of incorporation
- Memorandum and articles of association
- CVs of the business investors and shareholders
- Initial deposit (as per the bank’s requirement)
- Any other document (if required by the bank)
4. Get the approvals
Once you submit, the papers will undergo the inspection process that the banking authorities will conduct.
If approved, you can deposit the initial payment, and however, if not, you need to cross-check with your business advisor to rectify the errors.
Thus, you have seen the complete set of steps to be followed by the business investors to proceed ahead to deal with offshore banking.
Business Setup Worldwide is a certified business consultant registered in Dubai who has been helping business investors to incorporate their business unit and open a corporate bank account.
Our advisors are well-versed with the offshore bank account process and can assist you in opening one.
If you are willing to step ahead, feel free to discuss this with our business experts. Contact us today-we’d be glad to assist!