Usually banking goes hand in hand with offshore company formation. For legitimate tax minimisation purposes, it is customary to have a corporate bank account residing in a country different from the country of incorporation. This is commonly practised.
For instance, a Singapore company is ideal for international business because company funds remitted outside of Singapore remain free from corporate tax. For this reason, many Singaporean companies possess a corporate Hong Kong bank account.
Offshore banking in Hong Kong is the preferred banking jurisdiction for many business people and corporations. Hong Kong has an excellent global reputation as a financial and banking centre. A Hong Kong corporate bank account provides protection, thanks to its political and economic stability. In addition, competitive banking rates, and a legal structure in support of progressive banking laws, offer more incentive for Hong Kong as a banking destination.
The cost of setting up a corporate bank account varies with each financial institution. It is recommended to use a well-regarded, trusted, safe, and well-known international banking institution of high reputation, such as HSBC, Citibank, and Standard Chartered.
Offshore banking is right for entrepreneurs and companies regularly conducting international business transactions. Global consultants are a prime example for the necessity of offshore banking. Offshore company formation allows consultants to conduct business and receive payment through their company, and the company is ‘offshore’ in comparison to their international demands.
There are jurisdictions that are more involved with international business than others, and these locations accommodate the ease of doing business internationally. Singapore, Hong Kong, Dubai, Ireland, New Zealand – these are just a few capable of creating conditions for ease of international business finances. Corporations, companies and entrepreneurs seek these regions for the level of expertise and infrastructure available to them for transacting and growing business globally.
OECD regulations trends in recent years have moved toward transparency in banking, with a push for countries to share information about their international bank account holders. But this does not mean offshore banking has a negative image. As long as the laws of each jurisdiction are respected, it is completely legal and respected to set up an offshore company with international corporate banking facilities.
For solutions to setting up your own global enterprise, contact Healy Consultants for a free consultation, email@healyconsultants.com or telephone the Singapore office (+65) 6735 0120.
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