The financial aspect and banking for business play a huge role in the establishment and development of a company. With the increase in the awareness of the investors and people in business about the various alternatives to save and grow their money, the trend of keeping an offshore bank account can be seen gradually increasing. In recent times the offshore banking has come under fire as the industry was described as immoral and is usually perceived as the first choice of the people who want to evade tax.
This blog will explain the benefits of having an offshore bank account in the United Kingdom.
What is an Offshore Bank Account?
An offshore bank account is when an account is opened up in a bank which is physically located in any location which is outside the account holders home country. All the ex-pats which originally hail from a country but reside in a second country must have a bank account in the latter country. This will be an offshore bank account for the ex-pat. Every person in business generally requires a foreign bank account after the setting up of a business in the country.
An offshore bank is generally regulated under the International Banking License (also known as an offshore license). As such banks are not heavily regulated, these are often associated with hiding and undisclosed income of a person, but if handled carefully and with the right reasons an offshore account can have many advantages.
Benefits of having an Offshore Bank Account
An offshore bank account will help in managing the finances of an ex-pat. Such accounts are often dealing with various currencies, making it easier for exchange of money. There are numerous other benefits of setting up an offshore bank account, such as:
1.Convenient for Ex-pats
One of the most significant advantages of opening an offshore bank account is that doing a transaction in these banks is very comfortable. The account holder can access the report at any time of the day. It is not necessary to be physically present at a bank as the report can be accessed via a phone or the internet.
2.Easy transfer of money
As these banks are not limited to only a single currency, it is straightforward for a person to transfer from one place to another. In the United Kingdom, it is very easy for a person to transfer money to and from the UK.
The offshore banks also provide with a large number of services which will be beneficial to a person in the long run. From easy bank account opening to a simplified transaction from anywhere around the world.
3.Efficient Tax Rates
There are many tax benefits which are applicable to an ex-pat according to the situation of the ex-pat. The tax rates in an offshore bank are very efficient and will allow a person actually to make a profit via private hedge funds. In a foreign account, it is also possible for a person to expect higher interest rates than the local banks.
4.Security of Funds
The money which is put in an offshore bank account is well guarded and secure. In some cases, more reliable than the bank deposits will be treated in the ex-pats home country. For example, in the year 2013, the people of Cyprus were blocked from taking any money out of their accounts. By keeping money in an offshore account, the chances of such threats affecting you are very less.
In the United Kingdom, the domestic banking sector is regulated by the Financial Services Authority (FSA). The deposits of UK deposit holders up to the value of £85,000 (approx. EUR 98,000) is protected under the Financial Services Compensation Scheme (FSCS).
All in all, setting up an offshore bank account is a very lucrative option and can be very profitable, especially an ex-pat. If you require assistance for setting up a foreign bank account, you must look into the services provided by Business Setup Worldwide. BSW will take care of all the procedures that you need to perform for obtaining an offshore bank account. The experts at BSW will provide you with all the services necessary to make your endeavour profitable. For any details, contact us, we will be glad to help you.