About Offshore Banking

Offshore banking is a financial alternative in which investors set up a personal, corporate, or merchant banking account offshore for privacy, wealth management, and investment strategy reasons. An offshore banking account provides depositors with flexibility, privacy, and protection from lawsuits initiated by third parties. Offshore banks are typically located in tax havens and they provide asset security for depositors.

An offshore country’s regulations are often less strict than their domestic counterparts. This makes it possible for more offshore banks to offer financial packages. Offshore banking has become a major worldwide business that stimulates the global economy and circulates two trillion dollars everyday.

History

The term “offshore” originated from residents of the British Channel Islands, a place in which tax havens were located literally offshore from the United Kingdom. As the original tax haven, these islands became major international banking centers due to their policies on banking privacy and tax regulation. As they grew in popularity, they became the most ideal places for investment companies and wealthy individuals.

Standard Products

Offshore banking centers provide standard services that are similar, if not the same, as traditional resident banks. Investors can open personal checking and savings accounts. A registered corporation can open a corporate account. Depositors manage their accounts online. They move and transfer money. Offshore banks provide their clients with debit and ATM cards, credit cards, and loan packages. An offshore debit and/or credit card is accepted worldwide.

Advanced Services

Offshore banks also offer investment and wealth management services. They provide additional corporate administration, trustee services, fund management, and foreign exchange currency conversions. Since offshore banks provide different specialized services, advanced products may not be available at each financial center.

Offshore banks offer private banking services in which clients customize their products. The offshore institution charges less for these services than their retail banking counterparts.

Privacy

The immediate advantage of an offshore bank is the privacy it offers to its investors. An offshore banking institution is not under any legal obligation to release any of your personal or business information. Unless a governing body reveals evidence of a client’s involvement in a criminal activity, an offshore bank doesn’t disclose personal information about you to any regulatory agency or tax authority.

Since offshore banking centers are mostly located in tax havens, assets grow free from heavy taxation. Thus, tax reduction is another major benefit of investing assets offshore.

Asset Protection

Asset protection is also one of the important benefits of investing funds in offshore banking institutions. Holding offshore accounts gives you protection from invasive bureaucracy and third-party lawsuits. This provides the investor with protection from garnishments and seizures.

Harbor Financial Services (HFS)

Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.

 

Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.

Offshore Companies: A Safe Way to Safeguard Assets

Offshore companies are incorporated in foreign countries that offer anonymity for businesses. The fundamental function of these types of companies is to conceal the value of assets from ex-business partners and ex-spouses.

Entrepreneurs in the field of international business often prefer creating an offshore company in countries that favor anonymity. For example, one of the most preferred places for setting up an offshore company is in Panama. Panamanian laws favor strict privacy and consider privacy to be a constitutional right for its national and foreign citizens. The greatest benefit of U.S. companies setting up an offshore company within Panama is the fact that the citizens of the country speak both Spanish and English. This makes it much easier for companies to conduct business transactions. The options that offshore countries offer and the advantages of setting up an offshore company make it easier for companies to safeguard their assets.

Benefits of Creating an Offshore Company

There are benefits to setting up an offshore company. Business strategies change overtime. Creating an offshore company is one strategy that ensures that assets are protected. The following represent some benefits for U.S. businesses to consider as they develop plans to safeguard their assets:

  • Tax reduction
  • Investment reserves
  • Anonymity
  • Choice of company appointments
  • Low cost of operation

With these benefits, setting up an offshore company provides the most options for companies that want to conserve earnings and reduce costs.

 

How is an Offshore Company Created?

Local jurisdictions in foreign countries require the following steps before businesses can begin operating as an offshore company.

Step 1: Choose a name for the offshore company. Choosing the name also includes submitting paperwork and paying the incorporation fees.

Step 2: Select the location of jurisdiction. As you consider the best location for the offshore company, also consider tax planning and offshore banking.

Step 3: Appoint a director or a secretary who will run the company. This appointment adds a level of protection for personal and business privacy in addition to safeguarding assets from litigation.

These basic steps are necessary for any business creating an offshore company.

 

Tip to Remember

 

There are many online websites which guide you through the process of setting up an offshore company. Type in the keyword and explore the results.

Harbor Financial Services (HFS)

Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.

 

Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.

Which Offshore Account is Right for You?

Offshore banking services and financial products are ideal for account holders who desire specialized services. There are three main advantages to selecting an offshore account. First, an offshore banking account provides a depositor with a low tax structure, anonymity, and flexibility. Secondly, investors earn tax-free interest in most offshore jurisdictions. Lastly, an offshore account provides the same functions as a traditional bank. Depositors can manage accounts online, transfer funds, apply for credit and loans, and use their ATM and credit cards at a participating institution. An offshore banking account comes with fewer restrictions and greater advantages than traditional banking products.

Types of Offshore Banking Accounts

There are three types of offshore banking products. Private investors can open a personal banking account. Companies can choose to open a corporate account. Small business owners can select a merchant account.

Personal Accounts

Personal banking accounts are financial packages typically designed for an individual investor. A personal account offers investors minimum protection. Depositors must use and attach their real names to the account. They must provide additional information to prove their identity. They must also provide photocopies of their passport and their full address on account applications.

Although personal accounts provide the least protection than other offshore accounts, they still fall under the same banking privacy laws as other offshore accounts. In addition, the costs to maintain and manage a personal offshore account are much less than other offshore banking products.

Corporate Bank Accounts

Corporations must register within each offshore jurisdiction in which they plan to hold a corporate account and conduct business. Registering the corporation incurs additional costs above expenses related to setting up the offshore account. In some jurisdictions, corporations can register and set up the offshore corporate account at the same time without assigning an individual’s name to the account. Choosing this option depends on the type of asset and the type of protection the company will need. In all cases, corporate bank accounts receive the highest level of protection.

Merchant Bank Accounts

An offshore merchant account provides advantages for both the small business owner and the customer. Small businesses typically open a merchant account to manage revenue and cash flows that result from everyday business transactions. They use an offshore merchant account to perform credit card transactions online. They set up the account in their home country with a local bank, but process the transactions offshore. This allows small businesses to reduce costs and pass on these savings to the customers.

Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.

International Asset Protection

International asset protection planning is a method for structuring wealth offshore to minimize risks associated with civil and creditor litigation. It is a customized approach to safeguarding assets for persons with a substantial net worth which include doctors, attorneys, business owners, psychiatrists, psychologists, and financial planners, to name a few.

In addition, large corporations that have a long-term wealth management program in place also benefit from international asset protection planning as it provides a precautionary solution for safeguarding assets from unnecessary lawsuits and minimizing risks associated with taxes.

Taxes

An international asset protection plan is suitable for individuals and companies who want to safeguard their assets against tax increases. For example, if personal property or business taxes in a country increase, then asset protection planning is a good solution, because it protects assets from being charged unnecessary taxes.

International asset protection planning does not represent a method for tax evasion, although there are some jurisdictions that do not require foreign residents to pay taxes. Individuals are still responsible for some taxes within the country and jurisdiction in which they have an offshore financial account. It is important to research the laws of a particular country and seek professional advice.

HFS

Harbor Financial Services provides a diversified portfolio of solutions that include offshore planning and creating a customized package of offshore funding alternatives.

At Harbor Financial Services, you can find the best professional advice for protection of your offshore assets. Harbor Financial Services helps you create offshore international trusts and keeps your assets safely in your name. HFS offers complete packages for financial privacy and anonymity.

Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.