What are Foreign Bank Accounts?

Foreign Bank Account

So, you have made up your mind to open a foreign bank account?

Are you trying to figure out whether your hard-earned money will be safeguarded or not? Will the language barrier be a hurdle?

Well, dealing with foreign banks and investments has become a global need today. Internationalized banking has turned out to be a great saviour and a growth path for business investors.

This guide will highlight the core aspects you need to be aware of while dealing with a foreign bank account.

Foreign Bank Accounts

Foreign banks (FBs) have become an internal module of the global banking system. In the emerging financial and banking scenario of openness, liberalization and globalization, the foreign banking system has proved to be an excellent vehicle for economic efficiency.

In the modern era, one can proceed with internationalized foreign banking through the concept of offshore banking.

What is Offshore Banking?

In simple terms, offshore banking implies banking outside the bank account owner’s domicile, which leads to geographical diversification.

By opening an offshore bank account in any of the popular offshore jurisdictions, one can easily protect the business assets and wealth.

After the Panama papers scandal, the offshoring concept turns out to be more attention-grabbing.

According to the earlier myths, offshore banking was mainly used for illegal or offending purposes. However, today, the concept has completely changed, allowing business investors, entrepreneurs, and individuals to set up their offshore bank account.

Special Consideration in Offshore Banking

Earlier, foreign bank accounts were considered to be a part of illegal activities. However, in reality, it is not the same.

The Foreign Account Tax Compliance Act (FATCA) requires any bank in the world to report the balances of their respective accounts and the list of activities conducted.

Why Open an Offshore Bank Account?

As mentioned above, there is a global rise in opening an offshore bank account, and let’s look at the few reasons that drive individuals to set their foot.

  • Tax evasion is one of the primary reasons that drive business investors to step into offshore banking
  • Individuals who live in politically unstable jurisdiction use offshore banking to safeguard their assets and wealth
  • Foreign offshore bank accounts also help the individuals deal with forex trading
  • Another benefit that one gets by going offshore is the diversification of assets and dealing with foreign currencies

What is the Process of Opening an Offshore Bank Account?

Coming to the process of opening an offshore bank account, an individual has to go through the following steps:

  1. Decide on a business jurisdiction that is favourable for your business. Today, most of the countries in the world have decided to move offshore.

Do have a look at the popular offshore jurisdictions that you can proceed to open an offshore bank account.

  1. Make sure you have the papers that the specific bank requires. In general, the following documents are submitted to any foreign bank:
    1. A duly filled offshore bank account application form
    2. Identity and address proof of the business shareholders and investors
    3. Passport-sized photos of the business shareholders and investors
    4. Business blueprint
    5. Memorandum and articles of association
  2. The documents get submitted to the banking authorities, who will scrutinize the same for its authentication.
  3. Upon approval, the bank account gets opened.

The process, although, doesn’t seem complicated, yet it’s not easy to do.

Simultaneously, finalizing the offshore destination needs proper investigation and research.

Foreign bank accounts offer additional privileges as compared to home banks.

The best possible way to take a step is to proceed ahead with a business expert.

At Business Setup Worldwide, we are dedicated to providing the best offshore and onshore company incorporation.

Our dedicated team of experts can help you incorporate your business entity and open an offshore bank account with customized solutions.

To be an owner of your offshore bank account, feel free to contact us today-we’d be glad to assist!

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