Posts Tagged Offshore Trading Bank Accounts
Opening an offshore bank account in Cyprus
Posted by peter in Cyprus Bank Account on December 26, 2008
Opening an offshore bank account in Cyprus can offer a multitude of benefits to International companies, the main advantage being that you can use the internet to carry out most transactions. Well established banks in Cyprus can provide multi-currency trading accounts and investment accounts that can be accessed via the internet, so practically every transaction can be done online or by fax or telephone if you prefer. There is no need to go into the bank in person to proceed with business, everything is convenient and instant. Some banks in Cyprus also offer debit cards.
To set up this kind of account there are various forms of identification that you will be require to supply. Proof of your permanent address is always essential to open an offshore bank account, this can be a utility bill for electric or the telephone and has to be provided from all signatories, shareholders and directors of your company.
The bank will provide you with forms to be filled in and signed, if you are unsure of certain details or how to proceed there are agencies that can assist you with preparing all the relevant forms and paperwork and ensure you have everything in order before applying for the bank account. These bank account opening forms need to be completed and signed.
You will also need to get hold of a certified copy of the Certificate of Incorporation and a certified copy of the Memorandum and Articles of Association, again a good agency will be able to provide you with these relevant forms and help you to fill them in correctly.
You cannot open an offshore bank account without the necessary identification documents. Banks will invariably require a form of ID with a photo attached to it, these will be a passport or an international driving license or some other document with photo to identify you. Again you will have to make copies and these all need to be certified. All the signatories of the account to be opened, the directors and the shareholders need to supply ID. The ideal form of identification required by the bank is your passport, a copy made and it has to be notarized.
To be continued soon!
An anonymous debit card simply means that you don’t have to have your name printed onto it.
Posted by peter in Cyprus Bank Account, Cyprus Company Formation on December 23, 2008
An anonymous debit card simply means that you don’t have to have your name printed onto it. You can either choose to have someone else’s name printed onto it, put it into the corporations name or even choose to have the card printed with no name on it at all. The choice is yours.
An anonymous debit card programme will operate in the following way. Normally a card-issuing bank will issue the credit card either to a trust company or to a trust account held at the bank. A card reseller has the trust account held in an offshore bank in a different jurisdiction than the one where he is based in order to avoid any legal issues. The reseller is the one who has all control over the debit card and the money on it and will normally provide information online for you to have the ability to check the account and its transactions, balance, outgoings, etc. The actual money is held in the resellers trust account and he is the one who has the signatory power.
To obtain a debit card any other way requires opening up an offshore account and then applying for a debit card, however this method means that it will not be anonymous. Cards that are issued directly from the banks always have the name printed on the debit card of the signatory on the bank account. Offshore banks will also require different forms of ID and references before you can open an account and get a debit card from them.
Some agencies are able to set you up with an International offshore credit card, there is a VISA debit card with credit card facilities offered through leading International banks without having to obtain credit checks or bank references. They place great emphasis on client confidentiality. The card is given out with an offshore current business bank account from reputable International banks.
To qualify for an international offshore credit card it is necessary to have an offshore company already set up. With an International debit card you are able to cash money and view your account balance through an ATM, if it is marked with VISA/PLUS logo anywhere in the world. Money debited on this debit card can be taken out from over 855, 000 ATMs in 149 countries.
Money deposited in a debit account is much safer than carrying it around in your pocket and in the unfortunate circumstances that you should lose the card or have it stolen then the account will be frozen instantly.
When applying for the debit card the bank needs identification of the customer, but once the card is issued there is no name printed on it and so it is an anonymous debit card, this also means that it is issued immediately as there is no time to wait while your name is printed. These debit cards can be opened using both Euros and US dollars.
When you apply for the card there is no request for a guarantee deposit or opening payment to be made and if you are travelling overseas there is no requirement to show the information on the amount of money deposited on the card. When accounting in a foreign country there is no need to be concerned regarding the currency exchange as it is all processed automatically.
If you require an offshore bank account it is always a good idea to try and visit the bank yourself to set everything up, there are many offshore jurisdictions and there is very likely one not too far from your country of residence. This is especially important if you are setting up a business account and will be using the bank account frequently or if you are intending to deposit a large amount of funds. Check out where and who will be holding your money. Lastly, be aware that just because your bank account and company are offshore it doesn’t mean that you can carry out business in your home country or with fellow residents and avoid taxes.
An offshore bank is simply a bank where you can open an account but it is not in the country where you reside.
Posted by peter in Cyprus Bank Account on December 13, 2008
An offshore bank is simply a bank where you can open an account but it is not in the country where you reside. Most people decide to open a bank account in a country where there is no tax to pay or the rates are extremely low, one that provides financial and legal benefits, opening a Cyprus bank account can give you many of these benefits.
Advantages to opening a bank account in Cyprus include a great deal of privacy and confidentiality as well as less restrictive legal laws and rules than those imposed by an offshore bank account. They offer their customers protection against any kind of local political or financial stability and have a greater access to deposits.
The majority of offshore banks are located on island nations; some of these include Cyprus, Jersey, The Isle of Man and Bermuda. They can also however be found in other countries that are not islands, such as Luxembourg.
Once offshore banking was associated with illegal activities, laundering money, organized crime and tax evasion, however there are plenty of law abiding citizens’ who maintain an offshore bank account as individuals or for their international business.
Offshore banks have no legal responsibility to report income to other tax authorities as they are protected by bank secrecy. This doesn’t make the practice legal of course, if you have an income that you don’t declare to your own tax authorities then it is illegal and if they do become aware that you have this account you could be in some serious trouble.
Since 2001 there have been more demands for increased directives on global finance, especially those relating to offshore banks and tax havens, due to their reputation and the easier risks of illegal money flows.
Why do people choose to open a bank account offshore? Generally, the offshore banks will offer higher interest rates than those that are on offer by the banks in the clients own countries. This is possible as their overheads are considerably lower due to the location and the absence of any involvement by the government of the jurisdiction.
For residents of countries that are politically and economically unstable, putting their lifesavings in a bank account can be a risky action. Offshore bank accounts can provide a safe and reliable place to put their money with no fear that it will be reduced or even frozen and they subsequently lose everything.
There are few industries that a small island community can earn money from, many of them are popular tourist destinations and tourism is their main industry.
Offshore banking provides another industry they can take on and compete with other countries. Also it can provide a way of creating investment and growth in the economy of the country as well as helping to spread out the world’s finances to the developing world.
When an offshore bank pays interest most of the time tax is not deducted. This is a huge benefit for those who don’t pay tax on global income and those who don’t pay tax until the tax return is decided. It is also possible to set up an anonymous bank account in Cyprus or another jurisdiction, this option isn’t available with domestic banks. Higher rate loans based on the risk and investment opportunities are also more viable than anywhere else.
Supporters of offshore banking claim that creating competition in the tax and banking world is a benefit to the industry, as it permits people to select a suitable equilibrium of services and taxes. Those against offshore banking say that the competition puts the banks at a disadvantage, as governments in developed countries are forced to deregulate their banking systems in order to stop everyone turning to offshore banks for their financial needs.
There are disadvantages of offshore banking and the main one is that it is often related to tax fraud and organized crime. Although there are instances and once there was a time when the majority of people who used offshore banks might have been involved in these kinds of activities, now a large number of expatriate and international workers use and open offshore bank accounts.
Due to the location of many offshore banks it can be difficult to get information and access the bank, contact would be mostly by telephone or via email and this isn’t always proficient.
Accounts can easily be set up online and all business transactions handled online, which many people prefer. Those people who receive high incomes usually seek out the services of offshore banks as they tend to pay a higher rate of tax and having an account offshore can save them money.
Offshore Company Experts
