This week the Turner Little team provides advice on offshore banking, to ensure that you utilise these services effectively in order to protect your firm’s interests.
Managing assets
Many people believe that offshore banking is reserved for those who want to hide money. This causes them to question the legality of offshore bank accounts, and why a person would need to store assets in foreign countries. However, despite the fact that offshore banks sometimes live up to this reputation, they can also supply you with legitimate means to manage your assets.
Following the law
If someone wants to hide money badly enough they’ll find a way to do it, even if they have to store cash under their mattress. It’s important to note that money can be hidden in offshore banks in the same way it can be in their domestic counterparts – it’s funnelled through business and trust accounts where the “owner” doesn’t own the money; also known as money laundering, which is a crime.
The majority of offshore bank accounts require you to declare interests and assets in your home nation. If someone wants to maintain legality, they’ll usually establish a business account abroad and then open an offshore bank account. The team here at Turner Little can provide you advice on maintaining your Offshore account, to ensure you’re following the law.
We should note that if you’re a U.S. citizen, you’ll probably need expatriate status to establish an Offshore Bank account, as under the majority of circumstances, you’re not legally allowed to do so. Most of the banks don’t report income; it’s your responsibility to keep records and do the proper reporting, as if you don’t and you’re caught, you can be convicted of tax evasion.
Who requires an Offshore Bank account?
Therefore an Offshore Bank account can provide you with legitimate means to manage your asset, but is this the right option for you? The people who require Offshore Bank accounts are usually those who need one to operate their business. For example, if you travel abroad on business regularly and can’t afford to place yourself at the mercy of exchange rates, or conduct business with local accounts.
Basically you can’t ensure that your company runs smoothly when you’re conducting business away from home, if you have to issue cheques off an international account. This both delays the process of payment, and stigmatises your firm in communities where people are hesitant to deal with foreigners.
Prime Offshore locations
If you decide to utilise an Offshore Bank Account, you need to ensure your capital is protected. For example if you’re a British citizen and you send money abroad, you may lose the deposit protection scheme protection provided by the UK. You should also make sure you’re dealing with a reputable financial institution.
You should also ensure that you open your Offshore Bank account in a country that provides a sense of privacy such as Switzerland, St Vincent & Grenadines or the Mauritius. Swiss bank accounts have a reputation for protection and privacy; meanwhile Mauritius are compliant with international banking laws and have robust privacy laws.
Many UK citizens choose to open an Offshore Bank account remotely, a process which can be completed through Turner Little.
Turner Little
If you decide to establish an Offshore Bank account, you should ensure you utilise a robust service which safeguards your firm’s capital. Turner Little provides the Offshore Banking services you require to manage your assets within the parameters of the law.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
