An offshore bank account is simply a bank account that you hold in a foreign jurisdiction outside your home country. And choosing the right jurisdiction that caters to your need has been the most significant aspect in opening an offshore bank account. Every jurisdiction attends to different benefits, while some focus on offering tax benefits, some focus on providing more confidentiality to the account holders.
The idea of offshore banking has often been stigmatised with illegal money accumulation, money laundering and tax evasion. Even though such illegal activities occur to some extent, offshore baking is in fact, completely legal if done right. It’s not about evading taxes or other illegal activities but about safeguarding your assets and ensuring your properties in the safe hands of a suitable foreign jurisdiction outside your country of residence all legally.
Offshore Banking In The British Virgin Island
Opening an offshore bank account is, in fact, beneficial in a lot of ways to the account holder. It is sort of like an insurance policy where you can get a lot of legal and financial advantages. One of the most popular and regulated jurisdictions for offshore banking is The British Virgin Island in the Caribbean. It is a group of about 50 beautiful islands and a popular tourist destination too. Opening up an offshore bank account in the BVI is more likely to be a favourable option.
The territory’s income mostly comes from offering financial services and tourism, with over 50% of the income coming from offshore banking services. It has a long history in offshore banking for providing favourable and flexible legislation for opening up an offshore bank account. It is backed by a stable government and a well-regulated legal system for your protection. Offshore banking in BVI is reputable and offer some great deal of benefits:
1.Sound banking system:
The banks in the BVI jurisdiction are fundamentally stable enough with very low debts. They are much better capitalised and keep a lot of cash on hand. They don’t gamble with customers' deposits and are much more responsible towards holding the custody of your hard-earned money or assets. So, your money is in much safer hands.
2.A stable government: The laws in the BVI are based upon English Common laws and the government there has a long history of being politically stable and providing alluring offers to offshore companies.
3.No personal visit required: Opening an offshore bank account may not be that easy and time-consuming, but there is no requirement to personally visit the bank to have your offshore account opened. Everything can be done online and faster, given the documents asked by the bank are all kept ready. Some owners of offshore companies tend to open offshore accounts independently, but this approach poses undesired scrutiny and risk of potential personal tax liability.
4.Ability to act quickly: The government of BVI provides enough flexibility to act quickly upon your account in terms of transferring money or moving assets.
5.Tax haven: One of the most alluring factors for offshore companies to the BVI is the imposition of no tax. Companies don’t have to pay taxes on capital gains, inheritance tax, sales tax, value-added tax, gift tax, or corporate tax. Only monetary payment is the business license fee to the government of the country annually.
6.Financial privacy: The jurisdiction has no tax treaties with other nations, and it provides high financial privacy to the account holders where all your financial transactions and clients information are kept highly confidential and trying to breach such laws will have severe penalties.
7.No currency exchange fees or limitations: Holding foreign currency is a great way of diversifying risk and protecting your purchasing power. Here in BVI, the government charges no currency exchange fees, and there is also no limitation to the amount of exchanges.
8. Internet banking facilities and international credit cards: Holding a bank account in the BVI will provide you with the facility to do banking from anywhere in the world through online and also the joy of gaining access to international credit cards.
9. The official language in the BVI is English
10.Reputable and established banking jurisdiction: The territory has never been blacklisted by the OECD. It has a very long history being reliable and providing beneficiaries to offshore companies.
However, while choosing an offshore banking jurisdiction, the specific needs of the individuals are to be carefully assessed first. We suggest you consult a financial adviser in choosing the best banking jurisdiction for you. Our Company business setup worldwide provides services for opening up your offshore bank account and much more. Feel free to contact us, and we will help you in getting touch with a registered financial expert into choosing your best jurisdiction. We’d be happy to help!