Offshore: The first thing that pops into my head when I read it is ‘Tax Evasion’, unsurprisingly it is not the case. I reckon it’s a misconception that one can evade taxes. Despite what you may come across, Offshore Banking in all respects is legal in all the jurisdiction. Although it is becoming more and more difficult to open a foreign bank account. Probably there may be a time when you can’t do it anymore. Having said that, here are few reasons why companies go offshore.
Reason #1: Variegated Investments- Offshore accounts are not only flexible with their administration but also give investors unlimited access to international markets. Imagine the number of increased possibilities of investments that are feasible with a new jurisdiction altogether. You can even hold property in another country. It is the best way to internationalize your savings. Besides this, offshore banks offer convenient online platforms for holding foreign currencies.
Reason #2: Expand your network- with new international customers you can dive deeper to build a network. There is a large number of potential clientele that wants to pay you money. Besides expanding your network and business, you can find the best approach for market penetration. You know what they say, the more the merrier.
Reason #3: No pestering from the banks- for transferring money from one place to another internationally. Almost free international money transfers possible with an offshore banking account. It also protects you from unreliable banks and banking system. In short, you are buying peace of mind, since you are taking a big step towards quick and efficient money transfer.
Reason #4: Find a long term visa abroad- boosts your chances in getting long term visa abroad. Since you have a company set up in a country away from home country, you are helping the economy of the host country. Thus, you can apply for long term visa, investment/employment visa. It can be a critical step towards freedom from absolute dependence on any one country.
Reason #5: You can legally hire staff- Yet there are plenty of freelancers out there you can still find a local which may perhaps come across as a better asset with a symbiotic relationship. You can be more equipped than ever before. Diverse count of staff in your company, ensures better operational output. Outsource your responsibilities and you can focus on your core functions. Thus, saves you time and money.
Reason #6: Confidentiality- Why should anyone know what comes in and out of your bank account? In whatever way, this secrecy doesn’t mean that offshore investors are criminals with something to hide. Indeed, it’s blessing for big investors as they don’t want small investors buying the same stocks as they plan to buy in bulk amounts as it may lead to a hike in prices.
Reason #7: Asset Protection- Individuals who are concerned about lawsuits, lender foreclosing etc. may transfer some portion of their assets from their personal domain to individual/organization that can hold it outside their home country.