If you are considering establishing an offshore company for your business, it is imperative that you understand the criteria which need to be met before you are able to take a professional step. In this article we will discuss how to open an offshore bank account for international businesses.
To start with there are three types of companies which are legally constituted in a company registry. These are sole proprietorship, partnership and corporation. It is important to know about the kind of company formation, you are going to be involved in before starting off on the different activities relating to this.
The first type of account is a private account. These are usually used by entrepreneurs who are running a small or medium sized business. These may not have many foreign customers but they will be easier to provide for than a conventional account as there will be limited international banking transactions. Although limited international payments are not available, there are numerous ways to pay your companies’ expenses.
A private company can carry out business like a regular company which has been registered. However, like a partnership these companies will not have the benefit of any tax deductions. In the first instance these types of accounts are usually run by a CPA (a Chartered Professional Accountant) who will draw up the needed documents to bring your company up to date.
Once your company is registered, it can carry out all the normal banking activities which are normally done by the mainstream company. There are some companies who have a separate private bank account for their offshore businesses.
The second type of account is the provision of an offshore bank account for professionals. This type of business requires special expertise in financial matters and accounting in particular. If you are a business professional looking to set up an offshore company, it is advisable to open an offshore account as there are several legal steps which need to be completed prior to the account being officially registered.
These experts will draw up all the necessary paperwork to officially register your company and also draw up a legal agreement about how your money will be held. With the help of offshore accounts for professionals, you will be able to pay employees directly and also pay for goods and services directly from your offshore company.
It is important to remember that whatever form of corporate structure you may choose, your account will be considered a private one and therefore will be subject to stringent rules and regulations that govern the laws of the country in which your company is registered. It is therefore essential that you consider what you want from your offshore company before deciding to establish one.