Offshore banking definition
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.
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
Setup Business Expert.