Opening an Offshore Bank Account

An Offshore bank account is simply defined as a bank account opened outside the country of your residence. Offshore accounts are generally opened in the tax havens or low tax jurisdictions. Offshore banking has many advantages such - easy rules and regulations, privacy, low or no taxation, easy access to deposits, protection against political or financial instability. But how to open these bank accounts? This article deals with how to open an offshore bank account.

Opening an offshore bank account is very different than opening a bank account in your home country. You will be required to complete an application form and provide the required documentation. Regulations for opening a personal offshore bank account or an account for your company are same. For personal account the documents could be as simple as copy of your passport, utility bills, etc whereas the documentation could be a bit more complicated for the corporate accounts. However, if you utilize a competent advisor to form your offshore company, that advisor can provide the required offshore company documents to open the offshore bank account.

Here is a list of the documents that you should keep ready when you open an offshore bank account for your company:

Purpose for opening the account: Prepare a letter describing your company and the use of the offshore bank account. It is good even if not asked to include the intended annual turnover and information about origin of the funds deposited.

Company Existence: This is again an important document. If you are opening an account for your offshore company, it is important to provide the proof of its legal existence. For this provide a Certificate of Incorporation or a Certificate of Good Standing (if the company was incorporated more than a year ago). As stated above, the company that helped you form your offshore company can provide this.

Consent of the Director's: Include a consent letter for opening offshore bank account by the offshore company's board of directors. However some offshore banks provide their own resolutions for the directors to sign, so it's always good to confirm it beforehand. As stated above, the company that helped you form your offshore company can provide this.

Directors and Shareholders: Provide a firm evidence of the current directorship of our offshore company. Many banks also require information about the shareholders of your company. For this provide a copy of company's register of shareholders or a dully signed declaration form regarding ownership as per the bank's format. As stated above, the company that helped you form your offshore company can provide this.

Personal Identity Conformation: Almost all offshore banks require evidence of the account signatories' identity. Some banks also require proofs of identity not only for the actual account signatories, but for all directors and owners of the company as well.
For this provide a copy of your passport or driver's license.

Bank References: Many of the offshore banks may request letters of reference from another bank, though not always. Sometimes an introduction by an existing customer is accepted instead of a reference.