When thinking from a new offshore company’s point of view, an offshore bank account is one of the crucial aspects that its corporate owner is looking look for, so that money can be accessed from anywhere around the world.
Protecting an individual's and businesses' assets from civil judgments by using systems, methods, techniques, and procedures originated from the common law based on court decisions and statutory law is termed as an asset protection. Without Asset protection strategy, the creditors can take possession of the assets easily without any hurdle.
The offshore bank account is one of the best options for asset protection. You will have some resources to count on even if you found yourself dealing with a government agency or a frivolous lawsuit. Since such summary powers can't reach beyond the nation. Of course, if the assets are placed under an offshore company and the corporate owner is a citizen of a country with CFC (Controlled Foreign Corporation) rules, the asset protection approach has to be different and we ascertain that an offshore bank account may not be sufficient.
The idea of having an offshore bank account has recently continued to grow because of numerous issues like a frivolous lawsuit, political instability in many countries and more companies seeking tax planning solutions. It makes sense for MNCs to have offshore bank accounts as the transaction fee is expected to decrease significantly and it is impractical to depend on one account as well.
Other than asset protection, an Offshore Bank Account offers a lot of more benefits to the account holder both for the individual as well as for the business. Some of these benefits includes:
- It dilutes your political risk;
- It is a great way for currency diversification;
- The ability to act fast and transfer money abroad (If you have offshore bank accounts in different time zone, you can practically send and receive money for efficiently); and
- An offshore account also maintains provide additional privacy.
An offshore bank account acts like an insurance policy. It protects you from many types of unfortunate event. Besides these benefits of protecting your assets and privacy, it acts like an investment to diversify your saving and protect your purchasing power if you have a multicurrency account.
To find our more about our offshore banking service, please go to our offshore banking page.