What is an Offshore Company and an Offshore Account?

Definition:
An offshore company is a legal entity established in a tax free Jurisdiction or an offshore financial center situated in any part of the World which is also being protected by specific legislation which guarantees a status of full tax exemption.


Major Benefits of having an Off shore 
Companies:

• 100% foreign ownership of the enterprise
• You can have the privilege of the Registered Office Address for your company(It will be the Registered agents Address) without having a Physical Office.
• You can buy Properties anywhere in the World under Offshore Company.
• This would be a “Limited “Company having any amount of shares.
• You have the liberty to Open Bank accounts with Multi currencies.
• This can be a Holding Company in future.
• Open an Offshore Bank Account with Multi – Currency benefits.

Offshore Bank Accounts:

Mostly the Offshore Companies are accompanied by having an Offshore Account with it. All major International Banks support offshore banking. We can even say “Offshore Bank Account” and International Bank Account” are identical. Mostly preferred to be called by bankers as International Bank Account as the term “Offshore” straightly relates to an isolated jurisdiction other than the Account holder resides.

Offshore Company and Offshore Companies are majorly popular in the Countries where there is Heavy Local Personal and Corporate Tax on Individuals and Corporate. In Certain Countries like Britain the International Bankers motivate all the expats to go for an Offshore Bank Account for Various reasons like;

• Tax efficiency or Minimal tax on their savings.
• Completely Anonymous
• More Flexibility and convenience in handling Accounts
• Secured Location for parking their Personal Funds/savings

For Corporate entities these Offshore Accounts are used to conduct International Business by having Multi-Currency facilities and to park their funds where there is Minimal Tax for their earnings or No Tax jurisdictions.  Some Corporate they use these Offshore Companies to act are the Holding Structure or a Special Purpose Vehicle (SPV) for its Group Companies. It also serves as an Asset Protection Platform to High Net-worth Individuals and Huge Corporations in Local and in Abroad. Certain Jurisdictions allow the Registration of Aircraft, yacht and ship under this Offshore Companies.
There are different formations of Offshore Structures that are most Popular Globally

• Offshore Companies or International Business Company  with Bank Accounts
• Offshore joint venture or the Offshore Partnership
• Offshore Trust Account
• Offshore Private Foundation

Some Famous Offshore Jurisdictions to know about:

British Virgin Island: This is one of the Oldest Offshore Jurisdiction and has the Largest number of Offshore Companies.

Cayman Island: This is also one of the Largest asset Management Jurisdiction famous in Many European Countries and in US.

Mauritius: Majorly use for the Investment purpose and quite famous in Asian and African Market

Singapore: Was recently introduced jurisdiction but grown as very Strong wealth Management market targeting all Asian , European and MENA region people.  

Dubai: Quite new to the “Offshore“ industry, have been safe haven for International fund Management and Holding structure. Popular among Arab Nations, European and Asian markets.