How can you open an offshore account
In Russia there are many foreign commercial organizations that have the same rights as native legal entities.The same principle is realized in the countries of permanent stay of foreign legal entities that is why setting up and using an offshore is considered to be a legal activity regulated by international law. When a conflict of internal and external standards occur the priority is given to international regulations.
What are the advantages of registered offshore?
If business leaders aim to buy offshore accounts that means they minimize tax burden and protect their assets. The customers most interested in offshore registration include IT professionals, freelancers, mobile applications designers, as well as business leaders trying to compete at the international financial level.
Who should think of buying an offshore?
The following categories of entrepreneurs should think of buying an offshore:
An individual freelancer whose customers are from other countries and whose income is close to 30000 usd.
Designers of mobile applications
Business leaders who no longer see the need of supervising such as Tax Service,financial monitoring, etc.
Opening an account in European banks
Opening an offshore account is on the front burner. Domestic Economy unsteadiness contributes to that. Business leaders are seriously concerned about their assets protection. One of the options is money transfer to a safe bank. There is a widespread belief that being a European bank customer is available only to rich people. In reality each person can do that. Any person can open an account in an offshore bank. Latvian banks are much sought after. In comparison with domestic credit institutions their main advantages are
- service comfort
- affordable rates.
Opening bank accounts for private persons
Opening an offshore bank account or becoming the owner of a ready-made offshore with an open account is no big deal to a private individual. To perform that you must provide the following documents to the bank:
- passport (copy in Russian and English);
- original bank forms;
- application for opening an account ;
- document stating the true beneficiary.
By opening an offshore account online banks follow the principle of "get to know your customer". His activity must be clear to the finance institute staff. In case the purpose of the customer’s operation is not evident the expert has the right to ask the customer about the money origin. Sometimes it is necessary to supply confirming contracts or invoices. The term of opening an account depends on bank location. In general it takes 5-14 days.
How can a corporate customer open an offshore account?
Receiving a readymade offshore account goes in a similar way to that of a private individual providing the following documents to the bank:
-the apostilled original certificate of incorporation;
-a document evidencing the address of legal entity;
-the shareholders' resolution of corporate directors and secretary appointment. A similar document can be provided;
-the document evidencing the shareholders of the legal entity. If the company was registered less than a year ago registration documents with all the founders mentioned will be enough for the bank;
-articles of association or a similar document;
-declaration of trust or a similar document evidencing the agreement on opening an account between the owner and the beneficiary;
-Certificate of good standing;
-letter of attorney in case the account is supposed to be controlled by the attorney-in-fact -the company founders’ passports (Russian and English);
- application for opening a current account.
Opening an offshore account is only possible if these documents are available. Besides the bank requires to submit documents on the true beneficiary . There are often situations when bank refuses non-residents to open an account. It also concerns credit institutions loyal to customers operating on the territory of Latvia or Cyprus. Banks are not obliged to give reasons but the common ones are:
-incomplete set of document provided;
-unprofessional agent work by opening an account;
-failure to provide the requested additional documents;
- the bank searched out company’s unreliability facts;
-claim of too low or too high account money turnover which seems suspicious to the bank etc.
The same rules are observed buying a ready made offshore with an account. By eliminating some of the drawbacks mentioned above you can apply for opening an account again.