Advantages of opening an Offshore Bank Account:
- Funds deposited have tax privileges or exemptions
- Income generated from the account are tax exempt
- Bank secrecy
- Bigger possibilities for clients to invest globally
- Accounts are strictly private
- Protection of the account´s transactions done within the offshore bank´s territory
- Confidentiality in operations of the account
Although offshore banking is carried out in offshore jurisdictions or tax havens, the financial institutions which offer these services are licensed and authorized by the regulatory agency of the country. The operations of the banks are highly supervised, and there is no room for illegal activities. Clients can rest assure that their funds are managed by trustworthy institutions who are in search for their best interest and are nowhere near fraudulent activities that harm their or their clients reputation.
Personal Bank Accounts Vs. Corporate Bank Accounts
Corporate bank accounts provide privacy of ownership and protection of financial sources. Since the transactions of the account, or the account itself, will not be connected to the beneficial owner of it. On the other hand, if the bank account is opened by the beneficial owner, as a personal account, all transactions and operations would be more traceable, and linked to the owner of the account. Privacy will hardly exist and creditors will be able to proceed legally against the owner if needed.