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Deciding on which country would be the most suitable for corporate bank account opening is imperative for your business.
How to choose the best jurisdiction with an offshore bank account? To choose the best jurisdiction to set up an offshore business account, the following factors must be kept in mind:
1. Privacy and Security An offshore bank account is supposed to provide privacy and security for the business. This is guaranteed by the government regulations and the banking policies which guarantee greater confidentiality by not making information about the company public and also provides security for the assets held by the company in the offshore business account.
2. Tax Benefits With an offshore bank account, your business can face a lower tax burden, depending on the government policies of the country you wish to set up your account in, thus ensuring tax optimization. This is different from tax evasion which negatively affects the public perception of the business.
3. Higher interest rate In different countries, the interest rates provided in bank accounts differ. Therefore, it would be more suitable for you to choose a bank account where you are offered a high interest rate on your savings.
4. Lower risk Offshore banks usually provide multi-currency facilities which allow businesses to diversify their currency portfolio, thus reducing the risk of currency fluctuation. Moreover, banks also provide access to the global markets, thus increasing the investment opportunities available. This further allows businesses to diversify the market risk as businesses are not investing in only one financial market but multiple markets.
What are the top 3 countries with the best offshore bank accounts? Based on the previously mentioned factors, the top 3 countries for completing the offshore bank account opening are:
1. Switzerland Switzerland has one of the largest and well-respected financial centres in Europe with its high concentration of local and international banks and beneficial policies issued by the government and banking authorities.
According to the Swiss Banking Law of 1934, there are strict privacy laws, guaranteeing complete confidentiality. This implies that any information about the account holder and their transactions is not disclosed to the public, without the permission of the clients. Moreover, if your business is looking for asset protection, Switzerland might be a good choice.
Additionally, a low tax rate of 8.5% is levied by the government, which is comparatively lower than the Worldwide Average Statutory Corporate Income Tax Rate of 23.54%, measured across 180 jurisdictions. The banking authorities also provide account holders with multi-currency facilities and access to global markets for investment opportunities, allowing them to diversify any market risk.
However, the interest rate provided by the banks on deposits is negative, which is a downside to setting up an offshore bank account here.
Keeping all the factors in mind, Switzerland may be one of the most suited countries for business bank account opening.
2. Singapore Singapore has a strong and respected financial infrastructure owing to a stable political and economic environment along with strict but flexible regulations of the governing body. This well-established financial hub has led to greater efficiency and high-quality services.
The strict government regulations guarantee the security and privacy of assets and investments of the account holder. This information is not shared with the public unless permitted by the client.
The corporate tax levied by the government is 17%, which is relatively lower than the Worldwide average tax rate of 23.54%. Moreover, capital gains and profits are not taxed in Singapore. Besides this, Singapore has signed tax treaties with 60 countries, preventing double taxation and thus, lowering the tax burden. The average interest rate on fixed deposits is approximately 1%, which is not very high but at least is not negative.
The multi-currency banking facilities lead to lower currency risk and allows individuals to facilitate global trade more conveniently. The access to global markets has allowed Singapore to diversify its market risk as well.
3. Belize Under the Belize International Banking Act (previously known as Offshore banking Act 1996), Belize is one of the best countries to set up an offshore bank account. The financial sector accounts for a large portion of the country’s GDP and is, therefore, well managed.
As per the banking regulations in the country, there is high regard given to the privacy and security of the business assets. Information about the account holders is not disclosed to the public. Moreover, assets are well protected such that they cannot be frozen in case of any issues faced by the business in the home country.
Belize is considered to be a tax haven and would therefore be well suited for your business. However, depending on your home country’s policy, you may be required to pay tax on your income. For example: in the United States, you will be required to report your assets to the Internal Revenue Service (IRS) and pay the required tax. Moreover, the average bank interest rate on deposits is 2.5% per annum.
The banking authorities in Belize allow for international banking facilities. It also provides its clients with diversification opportunities to lower their risk.
Need help selecting the best jurisdiction for your offshore bank account? INTERSHORES can assist you to choose your offshore bank account. Do not hesitate to contact us at info@intershores.hk or whatsapp at (852) 6499 4686.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice.
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