Offshore Business Banking
Business banking is a specialized form of banking that caters to and provides services to mid-market businesses. In essence offshore business banking is the same as business banking, but provided by a bank located in an offshore financial center, free-trade zone, tax haven, or the like… Companies engaged in offshore business banking befit from the three key characteristic feature of offshore banking:
There are other benefits for a corporation to engage in offshore business banking and have an offshore company account, in that they benefit from competitive interest rates, have global access to accounts and can trade in multi currencies without restrictions.
Offshore business banks tend to polarize their services into: investment banking, merchant banking services and corporate services. In that way, they ensure the most required product is available to the client, by providing letters of credit, trade financing, merchant services, and money management and investor services.
While the paperwork requirements for opening an offshore company account are generally similar in most offshore financial centers, the length of the process is determined by the extent of the Know Your Customer (KYC) process which is a series of due diligence and bank regulations performed by financial institutions worldwide. In essence the KYC seeks to clarify and ascertain identity and relevant information pertinent to financial business.
The offshore business bank account can be opened without personal visit, through the services of licensed intermediaries. While individual accounts are not available with some offshore banks, all offshore banks provide business banking as longs as the qualifying criterion is met. Some offshore banks may have more stringent requirements, and some may have more lax regulations, as an example some private banks will not entertain clients without personal recommendation coming from existing customers.
Banks may require some, all or more documents than what is listed here in order to open an offshore business bank account. All copies must be certified and Apostilled, and credentials for each and every director, shareholder and signatory on the account is required.
Of course the biggest feature of offshore banking for both business and individual purposes is the confidentiality and privacy features. Therefore, most companies (IBCs) can be formed with nominee characters. The bank establishments are under law obliged to maintain the confidentiality on its accounts cannot disclose, share or communicate any information on accounts held in its establishment, unless instructed by a local court.
With hundreds of international or offshore companies conducting international trading, buying and selling, real estate the demand and need for offshore business banking has grown and continues to grow.
Account types in offshore business banking may include: current or checking accounts, term deposit accounts, foreign currency accounts. Competitive interest rates and flexibility in account structure, ease of set up are further enhancements to offshore banking business.
The tax saving and asset protection features of offshore business banking account are indeed most invaluable. So is the need for business banking that is beneficial to the accounts holder, through competitive rates on loans and savings, reasonable administrative and operating cost, profitability. Corporate banking is required to provide even more efficient business banking solutions as the world gets smaller through internet banking. Banks today need to be able to meet the demands of businesses enabling the business to facilitate their trade and investment activities.