Offshore Bank Account in the UAE
Business is an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause. The term business also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit. Businesses range in scale from a sole proprietorship to an international corporation. In the United Arab Emirates, there are mainly three kindly of licenses. They are Mainland License, Free Zone license and Offshore License. Establishing an offshore company in Dubai is a great way for entrepreneurs or working professionals who want to enter into international trade or service. During a company establishment, it is preferable to open an Offshore Bank Account to ensure the functionality of the business and helps in tax planning. Choosing the right bank account is the first step towards business success. Let’s see how it works.
What is an Offshore Bank Account?
The term ‘offshore account’ basically means a bank account that is outside one’s home country. An offshore bank account can be opened by an individual or under the company’s name. Such accounts offer legal and financial advantages to a great extent to its respective clients that increase the demand for holding such a bank account. There exist two types of offshore bank account:
- Offshore bank account for individuals
- Offshore bank account for corporate
What are the Features of an Offshore Bank Account?
An offshore bank account generally holds the following features:
- Convenience
- Absolute confidentiality
- Wealth management services
- Enablement of quick money management
- Easy transfer of international payments
- Flexibility to use multiple currencies
What is Online Offshore Bank Account? This is easy financing flexibility provided by the offshore bank accounts to ease the financial transaction process. It provides the ease to manage and deal with transactions from any corner of the world and helps the client to control their finance. What are the Features of an Online Offshore Bank Account?
- Available 24/7.
- Speedy transactions.
- Available at the client’s fingertips.
- Quick service.
What kind of Financial Services are Provided by an Offshore Bank? An offshore account presents a wide variety of financial services that include very large services. These include:
- Savings account.
- Corporate administration.
- Deposit-taking.
- Fund management.
- Trustee services.
- Loans – both commercial and personal.
- Global debit and ATM cards.
- Trade finance.
- Letters of credit and trade finance.
What are the Benefits of Opening an Offshore Bank Account? You must be wondering as to why open an offshore bank account or what benefits would you be able to avail by opening an offshore account? Well, the answer to your question lies below: According to research, there are more than 14,000 offshore banks in the world. The various reasons for an entrepreneur to open an offshore bank account are as follows:
- Protection of savings
- Little or no tax
- Asset protection
- Greater privacy
- The flexibility of currency diversification
- Generation of higher returns
- Privileges and benefits from foreign exchange services
- Easy money transfer
- Dilution of political risk
- Diversification of investment portfolio
Steps to Open an Offshore Bank Account? Opening an offshore bank account involves the following steps:
- Pass KYC
The KYC process involves three tests proofs for clearance that involves Proof of Identity, Proof of Residency, Credit History Report, and Proof of Wealth.
- Initial Deposit
Once the KYC process gets done, an initial sum needs to be deposited. It ranges from $350 to $1,250.
- Corporate Accounts
For corporate accounts, the following additional documents are required to be submitted:
- Memorandum and Articles of Association
- Certificate of Incumbency
- Certificate of good standing-attested
- Client profile
- Company brochure and description
- Bank documents for last 6-12 months
- Certificate of documents by the Ministry of Foreign Affairs
The maximum duration to open a bank account is 3 weeks. Once the account is activated, you would be receiving online access. Best Countries to Open an Offshore Bank Account As you have seen the procedure of opening an offshore bank account, let’s have a glance at the best destination to open such an account. The 7 best countries to open an offshore bank account are the Cayman Islands, Singapore, Switzerland, Nevis, Belize, Germany, and the UAE. Thus, you have got a clear idea about the importance of holding an overseas bank account and the best place to start with. Be it a start-up, or an established business, your business, and hard-earned money need to be secured in the best possible way and opening an overseas account could raise the security and ease the process. Setting up a business in the UAE is an excellent way to rightfully gain international profits. Emirates Chartered Accountants Group provides clients with licensing support for Company Formation in Dubai, UAE by providing strategic recommendations and negotiations with local stakeholders along with documentation formalities. For Company Formation in UAE please click below links.
To set up an initial consultation for Offshore Bank Account, please contact Mr. Viju Asst. Manager – Company Incorporation Mobile : +971 55 4028899 Phone. : +971 4 2500 290 Email: viju@emiratesca.com
Feb 29,2024UAE Corporate Tax Registration
