• Share:

Top 4 Benefits of having an Offshore Bank Account in the UK

The United Kingdom has the most powerful banking system in Europe and is the fourth largest globally. Over the years, the UK has turned out to be one of the profitable tax-havens that has grabbed international investors' attention.

Apart from company incorporation, one of the powerful segments that has established a strong demand is the offshore banking system.

Offshore banking is a niche facility that provides advantages for ex-pats living abroad and is often utilized by those requiring international financial services.

If you are looking forward to opening an offshore bank account in the UK, you are making a solid business move. There are multiple benefits of having an offshore bank account in the UK. Go through this guide to get a clear idea about opening an offshore bank account in the United Kingdom.

What is Offshore Banking?

In a global scenario, the offshore banking concept deals with opening an offshore bank account outside the country where the owner resides.

In the earlier days, 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.

However, today, holding an offshore bank account ads on as a prestigious move that helps a business investor to enter into international transactions.

Read about common myths about offshore banking on our website, which will help you to understand the insights at ease.

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 it, 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
  • Invest in forex trading
  • Enter the international market
  • Deal with global trading

Who uses Offshore Bank Account?

The offshore bank account is opened by –

1.Ex-pats

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 pay-out 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?

Generally, it is necessary to open an offshore bank account after offshore company formation in the UK for the company to be fully operational. When it comes to opening an offshore bank account in the United Kingdom, one must focus on several steps involved.

1.Get in Touch with a Consultant

Dealing with the banking process becomes a complicated one if you are not well-versed with the technical process.

Since you are a foreign investor, you may not be aware of the banking proceedings in a foreign land. Proceed in an error-free way and save time with business experts' guidance that can be essential and quite helpful.

2.Enter into a Clear Discussion

In the next move, you have to enter into a clear discussion with your business experts to get a complete idea about the process.

This will help both the parties to understand the process at ease, and necessary steps can be cleared efficiently.

3.Submit the Papers

In the next move, you need to submit the company papers to the business advisor that, in turn, will be handover to the banking authorities.

While opening an offshore bank account, the set of essentials include:

  • Duly filled bank account opening application form
  • Identity and address proof of the business investors and shareholders
  • Well-drafted business plan
  • Bank reference letter (if required)
  • Photos of the business investors and shareholders
  • Certificate of incorporation
  • Memorandum and articles of association

4. Get the Required Approvals

In the next move, you have to get the required approvals from the banking authorities to carry out the activities.

If the approvals get rejected, then you need to cross-check with your business advisor and rectify the errors accordingly.

5.Commence the Business Activities

Once the bank account gets opened, you are ready to carry out the business activities at ease. Additionally, you can also get involved in the international trading process.

Where do we fit in?

The above pointers highlight the complete steps that you need to focus on while opening an offshore bank account.

When it comes to proceeding ahead, it is recommended to proceed ahead under an expert's advice to guide you accordingly to take the appropriate steps at ease.

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.

The United Kingdom has the most powerful banking system in Europe and is the fourth largest globally. Over the years, the UK has turned out to be one of the profitable tax-havens that has grabbed international investors' attention.

Apart from company incorporation, one of the powerful segments that has established a strong demand is the offshore banking system.

Offshore banking is a niche facility that provides advantages for ex-pats living abroad and is often utilized by those requiring international financial services.

If you are looking forward to opening an offshore bank account in the UK, you are making a solid business move. There are multiple benefits of having an offshore bank account in the UK. Go through this guide to get a clear idea about opening an offshore bank account in the United Kingdom.

What is Offshore Banking?

In a global scenario, the offshore banking concept deals with opening an offshore bank account outside the country where the owner resides.

In the earlier days, 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.

However, today, holding an offshore bank account ads on as a prestigious move that helps a business investor to enter into international transactions.

Read about common myths about offshore banking on our website, which will help you to understand the insights at ease.

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 it, 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
  • Invest in forex trading
  • Enter the international market
  • Deal with global trading

Who uses Offshore Bank Account?

The offshore bank account is opened by –

1.Ex-pats

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 pay-out 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?

Generally, it is necessary to open an offshore bank account after offshore company formation in the UK for the company to be fully operational. When it comes to opening an offshore bank account in the United Kingdom, one must focus on several steps involved.

1.Get in Touch with a Consultant

Dealing with the banking process becomes a complicated one if you are not well-versed with the technical process.

Since you are a foreign investor, you may not be aware of the banking proceedings in a foreign land. Proceed in an error-free way and save time with business experts' guidance that can be essential and quite helpful.

2.Enter into a Clear Discussion

In the next move, you have to enter into a clear discussion with your business experts to get a complete idea about the process.

This will help both the parties to understand the process at ease, and necessary steps can be cleared efficiently.

3.Submit the Papers

In the next move, you need to submit the company papers to the business advisor that, in turn, will be handover to the banking authorities.

While opening an offshore bank account, the set of essentials include:

  • Duly filled bank account opening application form
  • Identity and address proof of the business investors and shareholders
  • Well-drafted business plan
  • Bank reference letter (if required)
  • Photos of the business investors and shareholders
  • e of incorporation
  • Memorandum and articles of association

4. Get the Required Approvals

In the next move, you have to get the required approvals from the banking authorities to carry out the activities.

If the approvals get rejected, then you need to cross-check with your business advisor and rectify the errors accordingly.

5.Commence the Business Activities

Once the bank account gets opened, you are ready to carry out the business activities at ease. Additionally, you can also get involved in the international trading process.

Where do we fit in?

The above pointers highlight the complete steps that you need to focus on while opening an offshore bank account.

When it comes to proceeding ahead, it is recommended to proceed ahead under an expert's advice to guide you accordingly to take the appropriate steps at ease.

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.

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 that 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.