The world has shrunk due to the policies of liberalisation, privatisation and globalisation. This is the reason there are a number of businessmen and entrepreneurs all over the world who are looking forward to investing in businesses which are set up not only in their home country but also the businesses which are established and registered outside of the country in which they live in.
In the earlier days, the offshore jurisdictions used to issue licenses for banks and did not have many requirements which needed to be fulfilled. Now, the scenario has changed. Today there is strict regulation which needs to be followed along with a number of due diligence processes and additional experience requirements. In many places, the concerned authorities also team up with the local office to provide services to foreign people in the business.
Offshore Financial Company
An Offshore Financial Company is a business entity which offers banking and investment-related services to the foreign business entities which come intending to set up a business in the foreign location. These financial entities work in the same way as the regular fully licensed banks work, but these business entities do not have fixed limitations on the currencies, deposits or any clients which they can or cannot offer services.
These business entities do not have any requirements related to the number of directors or shareholders in a company as well as do not have any nationality requirement. These business entities work as well as banks but cannot put the word ‘bank’ in their name. This is the reason these entities are preferred by foreign ex-pats who want to set up a business in a foreign land.
Benefits of Offshore Financial Companies
Availing the services of an Offshore Financial Company can be very beneficial for your company. Here are some of the reasons which make an Offshore Financial Company your best bet:
1.Round the Clock Service
The services provided by an Offshore Financial Company are usually personalised for its clients which enables your company to access its funds at any given point in time. They also provide the option of both internet banking as well as telephonic banking. Foreign ex-pats which have various international obligations and want to take advantage of international opportunities find such financial entities very appealing.
These entities also provide a dedicated relationship manager who will act as the point of contact for any further work making it very convenient for the foreign business.
A foreign business can avail a number of tax benefits depending upon the place of residence, personal situation, etc. These tax benefits can help lessen the tax burden on the business and also keep the funds safe and outside the jurisdiction of your country of residence. An offshore Financial Company will also play a huge role in estate planning and other investments.
3.Avenues to Invest
The Offshore Financial Companies provide the ex-pat with a wide variety of investment funds to choose from, which can be very profitable for your business. Still, such options are not available in your home country. Making an investment in a financial company may require assistance and certain cases, and this is why you should always take the assistance of an offshore consultancy firm which will help you to build an investment portfolio.
4.Foreign Exchange Services
These Offshore Financial Companies provide easy and quick money transfer between accounts free of cost, and some of them also provide a very competitive exchange rate when compared to some of the regular banks. This is one of the reason due to which ex-pats prefer an offshore financial company.
5.Security of funds
An Offshore Financial firm is highly regulated and transparent, which will help keep the business in the loop. These firms usually provide a lot better security than a regular bank deposit. Setting up an account offshore will also help the firms to dodge illegitimate lawsuits and will help protect your assets.
The Offshore Financial companies possess better infrastructure than other banks, and some are even considered as tax havens (Click here to know what is a tax haven). This reason requires them to have better infrastructure and use of advanced technologies for quick and efficient transfer of funds. This makes these financial entities a very lucrative option for ex-pats and other businesses.
Different jurisdictions have different laws, and an ex-pat can avail many tax benefits if the services of these Offshore Financial Companies are availed. The ability to save tax and also gain various financial benefits are a reason due to which these offshore financial companies are preferred.
These are some of the benefits of an Offshore Financial company which can be availed by a foreign business if they decide to set foot in another jurisdiction. These financial institutions not only help a foreign business to establish themselves in the country but will also provide them with accurate and timely advice which will help in the growth of the company.
The benefits of an offshore financial company can be huge, but the management first needs to understand the requirements of the company and choose an Offshore Company accordingly. With the proper tax planning and the various services of the offshore company, the growth of the business will not be hindered in any way possible. Some of the popular locations to set up an offshore company are Belize, Panama, Hong Kong, UK, RAK etc.
If you require assistance in setting up an offshore company, then you must look into the services provided by Business Setup Worldwide. We aim to provide the best services which will ensure the growth of your company. To know more about the services provided by BSW, Contact Us. We will be happy to help.