Opening offshore bank accounts are getting harder and harder. Offshore company owners are having a hard time as are all other people earning international wages. It is a stressful task to get an offshore account opened. However, we have brought some help to make things as easy as they can possibly be.
Types of offshore banks
When talking about offshore bank accounts, there are three main types. Firstly, there are basic offshore accounts for people to open in small banks of smaller countries and islands. Next, there are commercial bank accounts at larger banks for businesses. Lastly, there is a managed investment account for people who want to keep a huge amount of money. The minimum balance for this type of account is $500,000 to $2.5 million.
This last type of account requires an advanced structure. This is mostly an offshore trust that also has a hired investment manager. The investment manager should be in the same country as the bank account is being opened in. The advanced structure helps provide more security to the valuable assets of the company. The trustee and investment manager have a degree of separation in this advanced structure approach. Surprisingly, this helps to open up such an account rather easily. What is required is that the owner signs and fills up the required documents. These can be posted to the country of the bank. In certain cases, some banks will want to personally meet the applicant before opening the account. However, this is the least stressful method of opening such an offshore account.
The other option is to open an account with a small bank. Of course, since it is a smaller account, the required hassle is less. It is majorly because no one would want to go through a list of processes to open just a small account. This is why you can easily get this kind of offshore bank account by a simple email or sending the documents through courier. You can take the help of the firm that formed your offshore LLC or corporation to introduce you to the bank. The firm can also easily submit your documents and get the account opened. You will have to send in document proofs of your company details, your passport, and some sort of legal papers proving your residency. These small accounts will accommodate $5,000 to $20,000 amounts. The facilities of these accounts are very little. Only a few offer debit cards. Cheques are almost never an option and all transactions are wire transactions. Of course, this isn’t suitable if you’re expecting to be making lots of transactions and of huge amounts.
Opening this sort of a small offshore account is the best way around for businesses. The problem is that banks usually reject small accounts due to the regular cash flow which causes the bank to have a risk of being exposed for money laundering or other legal issues. If you can get through the convincing step, you’re good to go.