Advantage of Offshore Banking

The United States has always seemed like a safe haven for businesses and individual investors. The banks were untouchable, and the United States was so powerful that nothing was going to happen to it. We had the FDIC, and with that, our money was protected up to a certain amount.

Until last year, we still felt safe with our banks. With an unprecedented economic crisis on the horizon, hundreds of US banks fell. Businesses, investors, and families panicked. They rushed to the banks to make withdrawals, but many banks failed and families lost their savings.

These families are still trying to receive assistance from the government to recover their losses. Banks were failing so regularly that the US government had to purchase their toxic assets.

For years, nations invested in the United States by purchasing the country’s debt. With the struggling economy, nations were afraid to invest in the US. With no guarantee that borrowed funds would be repaid, lending to the US became risky.

A company can protect itself from the struggles of an economy with offshore company incorporation. Usually when an economy is struggling, there are increases in taxes to reduce the struggles. Incorporating out of the country can open the company up to tax exemption.

With an offshore company incorporation, it is best to have an offshore bank account in the same country of incorporation. This situation will have better tax implications compared to an American bank.

With an international company it is recommended to make sure your bank provides remote access to the accounts. If you spend most of your time in the United States or on the road, this can be extremely helpful. This can help you if you do not have direct access to the bank.

For an international company, another great feature of many international banks is free currency exchange. This helps reduce the costs when transferring currency. If the transaction fees are waived, this will help reduce costs for large companies. Incorporating outside of the US can offer many advantages to your international or domestic business.