You must have often heard the investors prefer offshore banking or business owners are looking forward to holding an offshore account.
The moment we think about this, the next question that pops up in our mind is “Why?” and “How?”
Well, to answer your question, here’s a guide that highlights the core facts of opening an offshore bank account in one of the most reputed offshore tax-havens- The British Virgin Islands
Now, again, you must be wondering Why?
Let me tell you that by the end of this guide, all your queries will be answered. Let’s start!
The Concept of Offshore Banking
An offshore bank account is simply a bank account that you hold in a foreign jurisdiction outside your home country.
Offshore banking is the ultimate ground that allows the business investors to carry out the business transactions at ease across the international boundaries.
Be it the British Virgin Islands or any other popular offshore jurisdiction, opening an offshore bank account can turn out to be a smart and fruitful step.
British Virgin Islands Offshore Banking Model
The British Virgin Islands holds a very strong reputation when it comes to offshore business incorporation.
Starting an offshore company in the British Virgin Islands has been simplified by the government of the jurisdiction.
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.
Benefits of Offshore Banking in the British Virgin Islands
Opening a British Virgin Islands bank account offers some great deal benefits to the business investors:
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 for holding custody of your hard-earned money or assets. So, your money is in much safer hands.
Here’s more on the offshore banking facilities that you can have a look at before opening an offshore bank account.
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 visit the bank to have your offshore account opened personally.
Everything can be done online and faster, given the bank's documents are all kept ready.
Some offshore companies owners tend to open offshore accounts independently, but this approach poses undesired scrutiny and risk of potential personal tax liability.
4.Ability to Act Quickly
BVI's government provides enough flexibility to act quickly upon your account in terms of transferring money or moving assets.
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.
To get a better idea of the “tax-haven” concept, have a look at our latest guide on: What are Tax-Haven Countries?
The jurisdiction has no tax treaties with other nations. It provides high financial privacy to the account holders where all your financial transactions and clients information is kept highly confidential. Trying to breach such laws will have severe penalties.
7.No Currency Exchange Fees or Limitations
Owning any 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 number of exchanges.
8. Internet Banking Facilities and International Credit Cards
Today, most of the banking services are carried out through the online medium, which means that the business transaction can occur at any point in time, irrespective of day and night.
Any investor who wants to open an offshore bank account in the British Virgin Islands will be facilitated with an online bank account process backed by international credit cards.
The investors also can enter into forex trading and earn huge returns on the investments made.
To know more on the forex move, have a glance at How to Obtain Forex Broker License for BVI.
9. English as the Official Language
When it comes to incorporating a company in any of the international countries, one of the biggest concern of business investors is the language of communication.
This is because it stands no-where benefit if one can’t understand the core details communicated, and ultimately it leads to loss of business.
The official language in the British Virgin Islands (BVI) is English that makes it a favourable offshore destination to commence business activities.
10.Reputable and Established Banking Jurisdiction
Finally, the territory has never been blacklisted by the OECD, which clearly states that the jurisdiction holds a high reputation in the eyes of business investors.
Checking whether a location is blacklisted or not at the initial phase helps the business investors to take a perfect call as it might hamper the overall reputation of the business entity incorporated.
Thus, you have got an idea regarding the core reasons as to why an offshore bank account in the BVI is widely opted for by business investors.
However, it is often recommended to proceed ahead with the bank account opening process at the time of company incorporation since the documentation part can be cleared at the initial phase itself.
However, while choosing an offshore banking jurisdiction, the individuals' specific needs are to be carefully assessed first.
We suggest you consult a financial adviser in choosing the best banking jurisdiction for you. At Business Setup Worldwide, we assist in the British Virgin Islands Offshore Banking process that allows investors to carry out financial transactions swiftly.
Our experienced professionals can help you select the best banks suiting your business needs and complete the process hassle-free.
To take the next step at ease, feel free to contact us- we’d be happy to help!