How to Open a UK Offshore Bank Account?

The United Kingdom has the most significant banking system in Europe and is the fourth largest in the world. The United Kingdom offers offshore banking services to offshore companies. Offshore banking is a niche facility that provides advantages for expats living abroad and is often utilised by those requiring international financial services.

This guide of offshore banking focuses on the UK and offers guidance to ex-pats and businesses in the UK to open an offshore company bank account.

Why Open an Offshore Bank Account in the UK?

This is with regards to both individuals and companies who want to open an offshore bank account. To put, having a bank account overseas is the first step to protecting your wealth and your freedom. Other reasons being –

  • Political risk diversification
  • Asset protection
  • Banking with more stability
  • Deposit insurance fund insolvency
  • Currency diversification
  • Higher interest rates

General Insight of Offshore Banking

Global banking has developed a somewhat unsavoury reputation among the general public due to its secrecy. There is a perception, deserved in some cases, that offshore consumers hide their income and wealth from tax specialists and that banks ease the process. This has encompassed tax evasion as well as money laundering.

The use of tax havens by British inhabitants and citizens to evade or minimise tax is legal but subject to a range of complex documentation and regulations. Additionally, British taxpayers have a responsibility to report to HM Revenue and Customs (HMRC) details of money held offshore that is accountable to tax.

Offshore Banks in the United Kingdom

One can want to start an offshore business in the UK for what it offers.

The major international banks in the United Kingdom are -

  • HSBC
  • Barclays
  • Lloyds
  • RBS Group

Also, there are other niche private banks offering banking services, like –

  • Rothschild Bank
  • Kleinwort Benson
  • Coutts and Co.

Who uses Offshore Bank Account?

The offshore bank account is opened by –

  1. Expats – If you live or work abroad but still need to make transactions back home as well, there are many benefits to having an account, and you can have your salary paid into in the local currency.
  2. Landlords – Whether you own a property abroad that you have let, or you have moved overseas and rented out your UK home, an offshore bank account could make it easier to receive rent and payout for bills and mortgages in the relevant currencies.
  3. Business people – If you need to travel more often for business, an offshore account could be convenient for being able to make transactions in different countries using different currencies.
  4. Retiring abroad – If you retire overseas, you might still want an account that lets you make sterling transactions in the UK as well as for general use in your new occupant country.

How to Open an Offshore Bank Account?

Opening an offshore bank account is much more straight-forward than it might seem, providing you meet the minimum requirements set by the bank. Once you apply online or in-branch of your choice, you will need to provide ID to prove your identity just like you’d need to with any other account. Depending on the report, you may need to take extra steps to verify your identity. There are several strict checks in place to prevent offshore accounts falling foul of criminals who want to launder money, avoid tax or involved in other illegal acts. You could be asked about the nature of the transactions in your account, or your UK bank could be asked for monetary reference documents.

 If your request is successful, you will be able to make your initial deposit and begin using the account.

We at Business Setup Worldwide can help you open an offshore bank account in the United Kingdom. We have advisors who have years of experience in this field and can make the process hassle-free. Our services include offshore business incorporation, IP, accounting and bookkeeping services, and much more. Contact us today for more information.