Offshore Company Banking
Offshore company banking is a basic yet crucial banking tool used by offshore companies, similar to Seychelles company. Offshore banking provides the comprehensive international banking services required by international businesses.
Offshore Company banking provides the full range of domestic banking products and services PLUS the full range of offshore and international banking. Offshore company banking is relatively the same as regular corporate banking, except the financial institution offering offshore company banking is geographically remote, physically located in an offshore financial center, free-trade zone, tax haven, or the like.
Multinational corporations, commodity companies and international producers and manufacturers that combine their business with offshore corporate banking benefit from banking services specifically set up to facilitate offshore/international banking and can take advantage of four key advantages offered only through offshore banking:
- Guaranteed privacy and confidentiality;
- Significant tax savings;
- Enhanced wealth and asset protection;
- Banking services Specialized for international and offshore services.
Offshore companies also benefit from competitive interest rates on loans and savings, flexible account structures, streamlined account set up, reasonable administrative and operating cost, profitability. Such companies have instant global access to corporate accounts and transact in multi currencies without restrictions or surcharges.
Offshore company banks are legally obliged to maintain confidentiality of accounts holders and cannot disclose, share or communicate any information unless instructed by a local court.
Offshore company banks classify their services into categories covers investment banking, merchant banking services, trade finance, money management and corporate services.
Offshore company banking services will vary from bank to bank but generally include these core services:
- Letters of credit
Wire transfer/wire payments
Foreign exchange/foreign currency transactions/foreign currency drafts
- Merchant services
- Clearing house services
- Travelers checks
- Clean collections and cash letters
- Export and import financing
- Import and export documentary collections
- Bankers acceptances
- 24/7/365 Online banking
The letter of credit is the tool that enables companies to secure lines of credit, establish sales terms, and bank guarantees. Without the letter of credit, companies would be required to do business “upfront” meaning they would have to pay all cost to vendors before trade activity.
Banks catering to trade account and money investment activities will have customized and specific services and products for trading activity include trading accounts.
Offshore company banking is available in many jurisdictions, offered by hundreds of offshore banks. Most, if not all offshore banks offer comprehensive offshore company banking services and products. Offshore corporate banking account types are commonly in the form of current or checking accounts, term deposit accounts and foreign currency accounts.
Some offshore corporate do not provide individual accounts. The requirements and regulations vary from stringent to lax. For example, private offshore banks will not consider clients without a personal recommendation first coming from an existing customer. Some banks do not offer personal accounts.
The offshore company is able to open a company offshore account without personal visit by engaging the services of authorized intermediaries. The documentation and application process for opening an offshore company account is quite similar to that of any domestic bank, though the Know Your Customer (KYC) procedure will influence the length of the process. The KYC is sequence of due diligence and bank regulations conducted to ascertain and confirm identity and to collect other financial background information.
Applications for company bank accounts include:
- Bank issued application forms, duly completed
- Signed bank signature cards
- Certified and Apostille copies of :
- incorporation documents, charter documents,
- Memorandum of Association and Articles of Association
- Picture id, preferably passport
- Board resolution in which appointed signatories are appointed
- Verification of permanent address (a utility bill or bank statement for each)
- Bank reference
- Professional references
- Business plan and forecasts
Document evidence relating to source of funds
Credentials for each and every director, shareholder and signatory on the account
The bank will open an offshore company bank account, once the applicant satisfies the criterion.