Tweet

Where to open an offshore bank account

Guest post by: Lawrence Smith

Article Overview: Provides information on offshore banking and potential benefits of opening an offshore bank account. Also includes key aspects of Singapore and Hong Kong as the top jurisdictions in which to open an offshore bank account.

Where to open an offshore bank account

An offshore bank account allows you to improve efficiency of international financial transactions. Despite the efforts of government and international business organisations in reducing the criminal activities, such as tax evasion, associated with offshore banking, it is still important to set up an offshore bank account in a politically and economically stable offshore jurisdiction. This can help to prevent any bureaucratic difficulties and tax haven stigmas. Choosing the right jurisdiction will optimize the benefits that come with an offshore bank account, such as tax efficiency, greater business freedom, protection of assets and ease of international operation.

Switzerland, which is the seventh largest bank center in the world, and the Cayman Islands, which is the fifth largest bank center in terms of deposits, have been two popular jurisdictions to set up an offshore bank account. Switzerland holds almost US$ 3 trillion in offshore bank accounts while the Cayman Islands holds an estimated US$1.9 trillion in deposits. However, there are a number of other jurisdictions that boast excellent reputations as financial hubs. These jurisdictions include Ireland, Dubai, Singapore, and Hong Kong.

Recent endeavours by western governments and the OECD in the fight against tax evasion has placed more attention on jurisdictions labeled as tax havens. Ireland does not carry a ‘tax haven’ stigma and is an attractive option for many American and other English-speaking entrepreneurs. The low tax rate of 10% is another incentive for people who would like to open an offshore bank account. To further attract investment, Ireland’s Shannon Airport Free Zone and International Financial Services Center in Dublin, also serve as tax incentives.

However, offshore bank accounts can also be safely and securely opened outside of Europe. Countries in the Middle East and Asia are benefitting from a migration of funds from west to east and provide excellent jurisdictions for opening an offshore bank account. These include Dubai, Singapore and Hong Kong. Dubai has emerged as a global financial center and holds an excellent business reputation. Dubai has great business incentives, especially the Dubai International Financial Centre (DIFC) that can be legally tax-exempt and encourages investment, corporate and private banking.

In Asia, Singapore and Hong Kong are the preferred offshore banking options for many international entrepreneurs and businesses. Hong Kong and Singapore are both regarded as the leading business hubs in Asia. They are also respected cities for conducting international business from, and therefore possess ideal offshore banking advantages.

Both jurisdictions have implemented international guidelines for tax related information developed by the OECD. First-class client treatment is also shown in Hong Kong and Singapore’s productive and skilled workforce, an added advantage for entrepreneurs looking to improve operational efficiency. Unlike Singapore, where the official language is English, Chinese and English are the official languages in Hong Kong. Therefore both jurisdictions make it easy for English speaking entrepreneurs to set up an offshore bank account.

With Hong Kong and Singapore regarded as the best locations for regional operations in Asia, opening an offshore bank account in either of these jurisdictions is an efficient international banking strategy. When considering opening an offshore bank account, it is becoming more important to choose a location with an excellent international reputation, investor-friendly business environment and economically and politically stable environments. Seeking professional advice can assist in developing a strategy that contributes to achieving overall business objectives.

Related Articles
  Offshore Banking – Top 5 Facts
  Why Hong Kong For Offshore Banking?
  Why Singapore For Offshore Banking?
  Offshore Banking - Explained
  Corporate Banking Options
  Singapore Offshore Banking
  Opening A Singapore Corporate Bank Account
  Singapore Offshore Banking - Is It Right For You?
  How to set up an offshore company
  Things To Know About International Banking
  You Know What Your Business is Going to Be, Now What? Steps to Open a Business
  Setting Up An Offshore Company In Hong Kong
  Credit Alliance Group discusses the effects of Cross Collateralization
  How to Open a Singapore Corporate Bank Account?
  How To Complete Offshore Company Formation
  Set Up A Hong Kong Offshore Company For Your Business
  SEO Companies in the UK, US, Canada and Australia are Outsourcing SEO Offshore?
  Offshore Banking in Singapore
  Offshore Investing
  Is offshore business the right business for you?

Article Tags: Hong Kong offshore bank account, offshore bank account, Offshore banking, offshore company formation, offshore jurisdiction, opening an offshore account, Singapore offshore bank account



Related Forum Posts
Re: How will an african make money truely on the net? - [quote="OmnivoreInk":1gmz8h93]Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...[/quote:1gmz8h93] You can actually get an offshore account but you have to provide many documents except if you will open a brokerage account which operate like checking account. Omnivorelnk, i believe one of these days a company will spring up to meet this challenge and make internet a worthwhile for africans and other under priviledge.
Re: How will an african make money truely on the net? - Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank? There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...
Paypal now Available to South Africans - I don't know if there are many South Africans on this forum, but recently Paypal announced that South Africans can now receive payments from them. They have done a deal with First National Bank so all that needs to be done is to open an account with this bank and you can receive money from your Paypal account. This is great news as it opens up a lot more opportunities for those of us living in this part of the world. MichelleJ
Re: How do you budget your life? - Here's an easy savings strategy for investment beginners: 1. "Pay Yourself First": Set up a regular payment into an investment fund, or even set up a direct debit from your bank account into a savings account that doesn't allow instant withdrawals. Keep it at a level that is feasible for you, but just a little bit challenging. 2. Whenever you come back home, throw your loose change into a bucket. Last month I carried my "bucket of money" to the bank and had over ¥100,000 (nearly $1,300) in it. Yes, it was heavy. I used a pushchair to get it to the bank! 3. Start collecting silver coins or other collectable assets. You can build up wealth at less than $50 a pop this way.
Re: The Top 50 Get Out of Debt Blogs To Watch In 2009 - Hi Evan, That is a very impressive list you have there. Some great resources for anyone looking to get out of debt and learn to manage their money wisely. Great discussion about overdrafts. Yes, I would be very worried about your husband's overdraft. I didn't realize you could have an overdraft that big. When my bank account was compromised recently, my account overdrafted twice, which cost me $35 each time. The fees were waived due to the circumstance, but anyone overdrafting on a regular basis would pay a lot in fees alone. I guess it would depend on what kind of account that is set up, but I imagine there is a limit on how much overdraft protection is available. For me, I have overdraft protection up to $200, which means my bank will cover the first $200 that is overdrafted. I'm not sure what would happen after that, but I don't plan on ever finding out. I would suggest not ever overdrafting as it's the same as being in debt, and I would pay it off as quickly as possible.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Qualities of Leadership Part 1

Using Social Media Marketing

Are You My Mentor

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.