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Benefits of Opening an Offshore Bank Account

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Benefits of Opening an Offshore Bank Account

The definition of an offshore account

Before talking about the benefits of offshore account, you can first understand what an offshore account is. Offshore account is a financial term, which is contrary to the bank account applied by the depositor in his nationality or country of residence, so called “onshore account". So, an offshore account is the bank account applied by the depositor outside his nationality or country of residence.


More flexible conditions

It is not difficult to see from its concept that the biggest advantage of offshore account is that it is not subject to the domestic foreign exchange control regulations. Due to the restrictions of local laws and foreign exchange control measures, there are many restrictions on the collection and payment of foreign exchange in the onshore account, while the offshore account follows the laws and regulations of the place where the account is opened, which basically does not restrict the transfer in and out of foreign exchange, making it more convenient to allocate funds.


Do not cause account use problems

Offshore account will not cause account use problems because it is far away from the account owner. The application of modern technology in the financial market, such as telephone banking, fax banking and online banking, makes the capital operation of offshore account extremely simple and greatly increases the attraction of offshore account.


Be more convenient than onshore account

Compared with onshore account, offshore account is more convenient. Whether it’s the opening of L/C, the speed of remittance, or the acceptance of bank accounts, offshore accounts are better than onshore accounts, and some foreign merchants even specify to use the offshore accounts of a certain bank.


The best choice for offshore accounts:

For some entrepreneurs, the best choice for offshore accounts is Hongkong local banks. Hong Kong is adjacent to the mainland and faces overseas. At the same time, it is a world-famous Financial and Trade Center. Hong Kong's local HSBC and Hang Seng Bank are well-known all over the world. Hong Kong has no foreign exchange control measures, so it is convenient to receive and allocate account funds. A letter of credit issued with a local account in Hong Kong is also more easily accepted by banks in other countries.

 

However, to open an offshore account, there must be a corresponding business entity as the applicant. Although people can open offshore accounts in many countries and regions, such as the Caymans, Seychelles and British Virgin Islands, the registration procedures, post maintenance and operating costs of Hong Kong companies are dominant. Therefore, it is very advantageous to open a local account in Hong Kong for foreign exchange related business.