Corporate Offshore Account, More Secure and Trustworthy
More than a few experts feel that, at present, a corporate offshore account is much more useful than a personal offshore account when it comes to protecting the client’s privacy. There are multiple reasons that support the former statement.
Since 2005, the European Union put its executive policies regarding savings and taxes in practice, in which it clarifies that the compartmentalization of information and withholding taxes on a personal account are not applied to offshore business bank accounts. This is fundamental for understanding the importance of this method and its increasing use.
Before the economic crisis, the governments were committed to increasing tax pressure on citizens, as a desperate measure to pay their enormous debts. The persecution over people’s finances has grown and this was also extended to the offshore world. Therefore, not even a personal offshore account is secure now, because it will always be linked to the name of the client. This doesn’t happen with a corporate offshore account.
When a person forms an offshore company and opens a bank account for said company, this is a corporate account, even when only you can control the funds. The owner’s name doesn’t appear anywhere. Supposedly, this company must pay income taxes, but since offshore companies don’t pay any type of taxes, nor do they have to send financial reports, they will never have to pay taxes on funds kept in the corporate offshore account.
The majority of clients prefer using a debit card linked to the offshore bank account, so this way they can withdraw funds anonymously from any ATM or pay in shops. This is a secure method, because only banks know the details behind the number of each card; these are protected by bank secret laws and cannot reveal data to a third party with a judicial order.
To establish an offshore company (and, hence, to open an offshore bank account) experts always advise turning to the services of specialized law firms that will tell you which offshore jurisdiction (for example, Panama) is best to work with, depending on the client’s interests and the country of residence.
The formation of an offshore company isn’t complicated and incorporation expenses aren’t high. These jurisdictions are tax free for offshore companies and count on strict laws that the bank secret to the maximum.