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Offshore banking definition

06 Mar 2014 - Posted by to Banking
Offshore banking is not a luxury, it’s a tool to manage your wealth and income.

Offshore business banking means that you have a personal or business bank account in a location outside the country you’re living in. This location is usually a low tax jurisdiction.

Offshore Bank account aplication form

Personal offshore accounts

People feel safe keeping their money in offshore zone by many reasons. Some of them are confidentiality, easy international access, potential tax efficiencies and non-restrictive banking options.

Most of us have a bank accounts in our home countries to manage financial commitments. You also need a bank account in the country where you’re living to cover things like your rent, utilities and shopping. Banking offshore provides a link between all your banking arrangements, giving you easy international access to your finances and a central home for your money.

Usually in order to open an offshore bank account, you need to make a minimum deposit around $25 000 or more. Some banks even have annual charges for such an account. To get account approved, you also need to show some minimum annual gross income.

Business offshore accounts

Any offshore company registered in the UAE can apply and open local bank account. The procedure is easy and straightforward. You only have to provide incorporation documents of your company and wait for 1 week till your account is approved.

Most of the banks have minimum balance requirements, but they are way less as opposed to Private Offshore accounts. Normally the required balance varies from $2 500 to $5 000.

Offshore banking in UAE banks is very stable and secure for your business. Investors can easily do all their global transactions on-line through Internet Banking, which is rather user-friendly in most of the banks. Offshore company can even open an account in overseas bank if such operation is allowed by the laws of that country.

Please, note that UAE banks do not provide Credit or Debit cards and Cheque books for Offshore business accounts. However, you can easily transfer your funds all around the world with no restrictions, and get easy access to your money in any part of the planet.

 

About Elena Ovchinnikova
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6 Comments:

  • By Louis / 07 May 2015 / Reply

    Hello. Do I need to fly to UAE for the opening of a corporate offshore bank account, or all this could be done by correspondance ? Thanks.

    • By Andew O. / 14 May 2015 / Reply

      Hello! Thank you for questions. Unfortunately, shareholders must sign all forms before banker. It by UAE Law. You have to come in Dubai for one hour only and we arrange meeting with banker. You will sign all forms and can go. When your bank account will be open all detail will be sent by email.

  • By Strawberry / 12 Nov 2015 / Reply

    What difference do you make between personal and private off shore account ?

    Is necessary to travel to open an personal offshore account ?

    What are the necessary documents ? My bills are not in my name…many people who have money do not have utility bills in their name.

    In the case of a settlement that is not annual income is that ok to use a personal off shore account in your region or is it simply not possible because it is not regular income ?

    • By Andew O. / 12 Nov 2015 / Reply

      Thank you for your question.
      There is no difference. Personal and private account is the same thing.

      Yes, by UAE Central Bank regulations it is necessary to come personally.

      In order to form a company you need to have:

      – personal bank reference
      – utility bill (if it’s not on your name, then that person can write a letter confirming that you are residing together)
      – CV

      You can use UAE offshore account even if your income is not regular. Banks only have one condition – you should keep minimum required balance on the account.

  • By Stefan / 25 Jan 2016 / Reply

    Hello, If I open a RAK offshore + company bank account in local bank, how will I be able to withdraw the funds from the account if the UAE Banks don’t offer Credit/Debit cards for offshore business accounts?

    Thank you,

    Stefan

    • By Andew O. / 27 Jan 2016 / Reply

      Many UAE banks offer Debit cards for Offshore companies’ accounts. You will be able to use it worldwide and withdraw the money.

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