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Offshore bank accounts. Offshore Companies As Effective Tool Of Minimizing Taxes

How to open an offshore account in Hong Kong

Persons, intending to open a bank account with a bank in Hong Kong, as a rule, are interested in opening corporate bank accounts. A foreign bank account in Hong Kong opened in the the name of an offshore corporation offers the additional protection of tangible assets and tax benefits.

A company, incorporated in Hong Kong, is not a classic offshore company, because Hong Kong is a Special Administrative Region, which is a part of China. The tax and corporate laws of Hong Kong are significantly different from the laws of the mainland China. In Hong Kong legislature allows foreign investors to register the companies that could be used as offshore business ventures.

But there is still one more big advantage in addition. The companies, incorporated in Hong Kong, are not required to pay any taxes, provided they do not receive any income from doing business inside of Hong Kong. But at the same time managing the Hong Kong company is not so easy, because there's a requirement to constantly keep accounts and pass the audit each year. Owners of the companies, headquartered in Hong Kong have to fill out a lot of form in order to prove to the tax office that their company does not conduct any business activity in Hong Kong. The older foreign companies that have been around for a sufficiently long time are being monitored by the local tax authorities less thoroughly. But if you're about to register a company, be ready to continuously provide the proof of your business not making profit from the operations in the territory of Hong Kong to the tax office.

Small minimum deposit required to open an offshore bank account in Hong Kong, if it is only not a brokerage account, is yet another benefit enjoyed by Hong Kong based offshore companies.

In the event you are still in the process of deciding whether to register or not register an offshore company in Hong Kong, don't fail to learn all the nuances of the legislation on the control of foreign corporations in your domestic country.

Offshore bank account in Dubai

An offshore bank account in Dubai can be opened both by individuals and by legal entities alike. The reliability of banks in Dubai is extremely high, which makes it possible to do the business with a wide range of banking services without fear for the safety of the funds. In order to open an offshore bank account in Dubai investor is required to pay a personal visit to sign the documents necessary for opening an account in the presence of the bank's official. Some of the local and foreign banks in Dubai to open offshore account with: Abu Dhabi Commercial Bank, Union National Bank, United Bank Limited, Emirates Bank International, Lloyds TSB, Al Hilal Bank, Abu Dhabi Islamic Bank, Al Khaliji C.A. (France), Al Masraf, Arab Bank PLC, Barclays, Sharjah Islamic Bank, Standard Chartered Bank, SAMBA, BNP Paribas, Citibank, Dubai Islamic Bank, RAKBank, Doha Bank, Dubai Bank, Emirates Islamic Bank, Bank Emirates NBD, Noor Islamic Bank. Many more respectable banks are available and would be glad to open offshore bank account, corporate or personal, with high level of confidentiality adhering to the strictest bank secrecy standards.

The absolute majority of the banks represented in Dubai (UAE) are providing online banking / internet banking services for both corporate and private bank accounts. online / internet banking in most of these banks are fairly versatile and easy to access and to use.

Besides the common features, such as checking the depositor's bank account balance and authorizing the online transfer of payments, the majority of Internet / online banking systems in Dubai allow payment of utility bills and phone bills, depositing funds in bank accounts, ordering check books and other services that are essential for saving time as motivating factor for using online / Internet banking in Dubai, UAE.

Numbered accounts

Offshore numbered account provides a high level of privacy for the owner of an offshore bank account. The bank, in which you have opened an offshore bank account, stores your personal information, but in the column of payment "Recipient" there will be listed only the bank account number, your name or your company name will not be mentioned. Account number is enough to make the payments to an offshore bank account. This makes the recipient's identity anonymous, because banks send payments without knowing the name of the recipient. Outgoing payments to the numbered account also make it impossible to know the name of the account holder of the investment products are purchased on behalf of the bank, and not on behalf of the account holder.

The bank's computer will deliberately omit the name of the account holder or any other information that might reveal the identity of the account holder. Numbered account is indetified only by a number or a code. The identity of the account holder is only known to the senior management of the bank. As there are no paper documents existing for the bank account transactions, the identity of the account holder cannot be tracked through the research of the paperwork in the possession of the investigators.

Numbered bank accounts can most easily be opened in the European jurisdictions sych as Austria and Andorra. Re-visit soon for the latest information about this kind of service in some countries and about the minimum initial deposit to open an offshore bank digital account.

Bank Account in Liechtenstein

The banking activities in Liechtenstein are regulated by the Law on Liechtenstein banks and financial companies. The Liechtenstein banking center forms the basis the commerce and economy of the nation, and the banking operations provide impressive income for the budjet of the country. If the banks in Switzerland create 11% of GDP, the German banks generate the input of around 3% of GDP, the banks in Liechtenstein yield the impressive 20 % of the gross domestic income of this offshore jurisdiction in Europe. Currently there are 16 licensed banks operating in Liechtenstein, some of them with headquarters in Switzerland or Austria. The 3 oldest banks operating in the jurisdiction are Liechtensteinische Landesbank (LLB), Verwaltungs und Privat (VP) Bank AG, and LGT Bank in Liechtenstein AG. The banks in question are the members of the Swiss Bankers Association and have pledged to adhere to the provisions of this association. Their overall reportes balance amounts 38 billion Swiss francs.

The private banking in Liechtenstein is based on the high level of protection of the bank secrecy. The banks in Liechtenshtein operate are reputed to be exceptionally stable, as they work in the situation of prolonged social and political stability. The legislature of Liechtenshtein, particularly the jurisdictions fiscal and tax norms, meets the international standards and complies completely with the requirements set by the EU. Liechtenstein is believed by many bankers, financial analysts, economists, businessmen, and even reputed offshore banking monitorin bodies to be the best tax haven in the world. Unlike the other tax havens, Liechtenstein has no special rules and regulations for offshore companies. Low taxes in Liechtenstein are enjoyed by everybody, though there is no zero taxation in the jurisdiction. Most goods and services in Liechtenstein are subject to VAT. Investment income (dividends, interest, rent and so on) are exempt from income tax, but there is a tax on wealth.

Offshore bank account in Dominica

If you are looking to open a bank account in the Caribbean in one of duty-free zones, pay attention to the Island of Dominica. Dominica is a technologically advanced offshore area that offers excellent infrastructure to Internet entrepreneurs (casino online payment gateways, online banks, online agencies of all sorts, insurance companies) who therefore have chosen this enclave to grow their business. The ease of opening an offshore bank account, reliability and financial stability are definitely the advantages of this offshore area that offers many benefits for the establishment of offshore banking, e-commerce, property & asset protection, and insurance.

Opening and maintenance of bank account in Dominica is relatively cheap, compared with the Bahamas, Switzerland and Liechtenstein, with minimum initial deposit being only 5000 Euro. Same as in the overall majority of other Caribbean offshore jurisdictions, there is a zero tax rate for non-residents in the Dominica.

Opening a bank account in the Republic of Dominica does not require the investor's personal presence. All operations and transactions can be done through e-mail, skype, phone or registered mail. Average price for opening offshore bank account in Dominica resides somewhere between 600 - 770 Euros with different agents and intermediaries.

More offshore jurisdictions

Options are available to open tax free offshore bank accounts with different level of the bank secrecy at reasonable price also in Belize, UK, Cyprus, Barbados, Latvia, Switzerland, the Seychelles, the Cayman Islands, the UAE and in Dubai specifically, San Vicente, Panama, and many others. Revisit soon to read review.

Foreign investment opportunities in the Netherlands

Due to a number of tangible positive changes in the tax legislation of the Netherlands towards reducing taxes that took place over the past years, Dutch company formations started to be widely used for the formation of holding businesses.

Yet, the tax burden for the companies incorporated in the Netherlands remains high enough. The Dutch corporate income tax uses a progressive scale: the companies with less than 200 000 Euros annual income is taxed at the rate of 20%, more than 200 000 Euros - 25%. Dividend payments for companies in the Netherlands are taxed at a rate of 15%.

From the other hand, dividend payments to foreign companies may be subject to agreements on avoidance of double taxation, which the Netherlands has concluded a lot. In this case it is possible to reduce the tax rate. There is also a zero tax rate on interest payments and on royalty.


What is an offshore bank account?

To give a simple definition, an offshore bank account is a bank account, located outside the country of the depositor's residence. Usually offshore accounts are located in the very low-tax or zero tax jurisdiction. bank accounts of the sort offer the account holder a number of specific legal and / or financial benefits.

In order to open an offshore bank account to be further used for banking operations, you first need to choose the right jurisdiction. The directives used by the majority of offshore jurisdictions as a guidance, are designed to ensure maximum security and confidentiality of the bank deposits and transactions.

Even if the banking secrecy forms the cornerstone of the offshore jurisdictions and tax havens, some jurisdictions see their primary advantages in ensuring confidentiality, while others focus on relieved taxation policy etc. While virtually all jurisdictions provide a sufficiently high degree of security and confidentiality, an investor should still think carefully about what they are aiming for targets, and only then select the appropriate jurisdiction.

International Finance Police

The International Finance Police was formed by the seven major G-7 countries to combat money laundering occurring on the world wide scale. Still back in 1989 this organization published 40 recommendations it suggested should be followed by all countries of the world. One of those 40 guidelines recommended that all countries of the world consider contracts that exists between the parties that knew that the contract would complicate the confiscation of the assets received under the contract to be recognized illegal.

Onshore company in the Free Zone in Dubai

Resident (onshore) company in the Free Zone in Dubai, UAE can be established rather easily, normally requiring quite a bit of the investor's time, namely from 2-3 business days. Such company is taxed at 0% rate and can be 100% owned by a foreign citizen. Domestic Company in the Free Economic Zone of Dubai is one of the most frequently used types of companies registered in the UAE.

banking secrecy in Austria
Austria, as well as Switzerland, is being widely advertised as a country with strong bank secrecy. But similarly to Switzerland, the bank secrecy could be compromised in this country, if the crime included in a long list of the crimes related to money laundering is committed by a bank account holder. In Austria, the filing of a claim for breach of banking secrecy must be performed by a depositor that under Austrian law has the exclusive right to sue, but only for 6 weeks after the breach of the bank secrecy was discovered. If the investor does not know any way of the breach of the banking secrecy of their deposit during this time, the bank account holder will not be able to sue the authorities or the bank guilty of the disclosure of the bank secrecy. Moreover, the client won't be able to learn about the breach of the bank secrecy because of not being informed by the bank.
The difference betweeen offshore and onshore bank accounts

Offshore bank account is an account in a bank located outside the country of the registration of the company or permanent residense of the individual. Usually, this type of account is being opened in an offshore jurisdiction with minimal or zero tax rates. Panama, Belize, Austria, Switzerland, St. Vincent and the Grenadines, Hungary, Seychelles, Antigua and Barbuda, Turks and Caicos Islands, the Isle of Man, Jersey and Guernsey make good example of some of the most popular countries for opening offshore accounts at this moment.

An onshore bank account is an account at a bank located within the jurisdiction of your registration or of your company incorporation. Examples of these jurisdictions are Dubai and the UAE, the USA, France, Japan, Germany, Austria, Portugal, Denmark, Australia etc.

Foreign investment opportunities in Barbados

The Government of Barbados offers a wide range of investment incentives, which are widely applied to the industrial sector.

Some of them are as follows:

- Manufacturing companies enjoy full exemption from income tax for 15 years for export operations
- After the tax-free period there are special reduced tax rates for export industries that are as low as 2.5%
- Tax rate of 1% - 2.5% on corporate profits of the companies doing their business in the IT field
- Complete exemption from import duties on raw materials, components, equipment manufacturing and other production related equipment, such as computers and spare parts
- The simplified custom's cleaning with minimal delays and minimum of the paperwork
- No restrictions on the export of capital, profits, and dividends
- Subsidized production and office areas are available for rent in neatly planned industrial areas
- System of grants to subsidize the cost of the staff training
- A one stop service for investors by the Barbados Investment and Development Corporation to assist investors and promote industrial development
- Tax rate of 1.5% - 2.5% applied to profits of the international financial institutions
- Tax rate of 1% - 2.5% for international companies with foreign shares
VAT abolished on the import of raw materials and packaging for completing registration of exporters who earn a minimum of 40% on their export sales.