Offshore Banking

Offshore Universe’s banking service offers trusted assistance in establishing and managing your offshore bank account for the purpose of your offshore company.

Offshore Universe’s expertise in identifying and working with suitable offshore banks allows our clients to benefit from the professional and confidential service expected from us.

Because Offshore Universe has a strong belief in complying with the highest standards of service, we choose only to work with banks regarded with equally high standards of KYC and compliance.

Why an Offshore Bank Account?

Unlike domestic bank accounts, offshore bank accounts offer the ability to deposit in multi-currencies, enabling saving in a stable and strong currency. Benefits of currency appreciation can therefore be enjoyed.

Setting up your Offshore Bank account

The offshore banks that Offshore Universe works with will require the following information and documents in order to open an account:

  • A certified copy of ID (typically a passport) of owners, directors, account signatories.
  • Proof of address of all owners, directors, account signatories.
  • A professional reference.
  • Expected annual income or asset base of the offshore company, the number of transactions per month, the geographic spread of the proposed business and the amount of money that will be left on deposit at the bank.
  • Disclosure of the proposed business activity of the company.
  • Details of the proposed source of funds for the company.

Repatriating Funds from an Offshore Account

There are various convenient ways in which to withdraw funds from an offshore bank account and repatriate monies onshore:

Debit Card Fund Withdrawal

For the purpose of withdrawing relatively small funds, all credible offshore banks issue a range of corporate debit and/or credit cards. The majority of small-to-medium business owners who use offshore structures are able to withdraw money through a standard corporate debit/ATM card which offshore banks issue upon opening an account, the debit card allows you to easily access funds worldwide via an ATM machine. As with all corporate credit/ debit cards, the card will be issued in the offshore company’s name and therefore it can be used by any authorised person without having any personal details disclosed. 

The advantages of this method:

  • Corporate Debit Cards do not require large security deposits to be made.
  • The transactions at ATM’s, banks, or merchants are not traceable to the client, and the only information revealed through the transaction is the corporations’ information.

Back-to-Back Loan Fund Withdrawal 

For larger transactions, a simple back-to-back loan can be arranged to repatriate funds onshore whilst avoiding tax liability. In this way, funds flow back onshore in a perfectly legal manner, without attracting the attention of the Tax Authority. In order to implement this, the directors of the offshore company will need to establish two accounts- (1) ‘offshore company account’; and (2) ‘onshore company account’. Funds held in the offshore account will be lent in the structure of a loan to the ‘onshore company’.

The lender will loan money to an intermediary (participating bank), depositing a sum of money to then borrow back the same amount of money. There need be no agreement between the lender and the borrower because each is dealing separately with the intermediary, or in instances where the lender and borrower are one party.

For legitimising purposes, terms of a loan agreement, repayment periods and interest agreements must be prepared for the purpose of the loan.

The advantages of this method:

  • Back to back loans provide flexibility with the total amount able to be drawn out from the account.
  • Back to back loans provide lenders the ability to set beneficial interest rates in their favour.

Limitations of this method:

This will depend on the particular taxation laws applicable in the countries concerned. Care should be taken that the arrangement is not contrived for tax avoidance reasons. There is no harm taking advantage of tax benefits which flow from choosing between jurisdictions, but the arrangement should be based on good commercial sense rather than mere tax avoidance.

Why an Offshore Universe banking service?

  • Offshore Universe’s expertise and relationship with banks in various different jurisdictions allows our clients to benefit from trusted, professional and confidential services.
  • Offshore Universe regularly reviews the best banking opportunities for businesses and investors, providing commercial awareness tailored to your business.
  • The banks which Offshore Universe chooses to work with comply with the following requirements:

                  – Provision of a debit card upon opening an account
                  – The ability for an account to be opened remotely without need to pay a personal visit to the bank’s jurisdiction.

Offshore Universe’s Banking Partners

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Offshore Banking Jurisdictions

Depositing funds and savings into an offshore bank account is able to provide many benefits. These include spreading risks through saving across multiple jurisdictions and in different currencies. Providing protection to assets which are kept far away enough from home jurisdiction’s governments, consequently, capital controls, asset freezes and litigious claims.

Offshore Financial Centres

Offshore Financial Centres (OFCs) play a key role within the international financial system. Such centres may be countries and or territories with low tax rates and other advantageous features such as relaxed regulation and bureaucracy, convenient fiscal regimes that make them attractive investment locations.

Offshore Financial Centres are attractive hubs for banking to conduct a wide range of trade and commerce business operations; deposits are not subject to reserve requirements and a large majority of banking transactions are free from tax liabilities.

In addition, offshore banks are exempt from regulatory scrutiny with respect to liquidity and capital adequacy.