Offshore Account Opening
A bank account that can be opened outside of your home country is known as an offshore account. This form of account is used to protect and safeguard your assets when making foreign transactions, as well as to take advantage of tax benefits. Dhanguard will direct you through the process and prepare the appropriate documents. We'd be happy to speak with you about the steps you need to take to open your own Offshore Bank Account. We ensure the contact between you and the bank is as effective as possible.
Many foreign companies are willing to open Offshore Account in UAE. All United Arab Emirates banks have attractive services for growth of international business. The services offered are stable rate of local currency against USD, online financial transactions, no limits on repatriation. Though, if you want to open a UAE offshore account, we at Dhanguard will assist you with the process as well as to prepare documents for the same. We would be happy to discuss with you what preparations you need to make in order to pave the way to your own Dubai offshore bank account. We make sure that the communication between you and the bank remains at a very efficient level.
An offshore account is a bank account that can be opened outside your home country. This type of account is used to protect and secure you assets and take advantage of the tax benefits while making international transactions.
Offshore bank account offers tax benefits, admission to international markets & currencies, asset protection and permit international transaction and access to investment products & asset management.
The documents required for opening of Offshore Account are as follows-
This document is needed to show the source of funds for the applicant company.
If you have any other company, prepare a corporate statement and ownership documents. It is a big plus if you already have existing business based out of UAE.
Recent utility bill or any document from municipality confirming address
You are required to submit your resume to show relevant experience
Short document which will explain the nature of your business and how you are planning to conduct it
Assessment of annual turnover and primary deposit to the account that is needed to be opened
Names with personal details of potential clients and supplies has to be mentioned. It is also required to mention the countries where the business will be conducted.
Once your offshore account is opened, it is compulsory to deposit a minimum balance in the account in order to “activate” the offshore account. The minimum balance amount is always determined at the initial meeting with the concerned bank account opening officer.
If your account balance has fallen below the required minimum balance then the bank will charge you some monthly fees for maintenance of the account. The amount will vary from bank to bank depending on the bank and the type of account.
The benefits of Offshore Account in UAE are as follows-
Dirham will be considered as the only currency for all your transactions related to the Offshore Bank Account.
In the corporate world, repatriation generally refers to the transformation of offshore capital back to the currency of the origin country in which the business is based.
Opening of offshore account also provides you with the benefits of online banking.
Having an offshore account, the company can easily withdraw the required amount.
You can easily transfer funds to another after having a Business Account in UAE.
The most important question is that why it is difficult to open a Business Account for Offshore Companies. As we are aware about the practice in the UAE, practically in 70% cases, banks refuses to open corporate accounts for offshore companies. This happens due to several investors have companies registered in the UAE as offshore companies that does not open business accounts with local banks or international banks.
The complications of opening bank accounts in the UAE are already discussed, but in the case of offshore companies, opening a business bank account in the UAE has become the exemption rather than the practical norm that is generally followed.
The banks in the United Arab Emirates are now more open to talk about the lists of countries for whom the banks of UAE rarely open accounts for neither business account nor personal account.
In addition to the sanctioned list of countries, banks also have a list of high-risk countries. For Examples the countries in the list of High-Risk are Cyprus, Malta, China, Russia etc. Documents of the organizers from these countries are reviewed extremely attentively and vigilantly. If the bank has decided to refuse to open an offshore account for any particular country or company then you will never know the reason for such decision from the bank.
It is recommended to carefully prepare the required documents on order to pass the scrutiny conducted by the concerned bank. Before filing with prepared documents, it is suggested to contact our specialized team to know the cause-effect link of failures, understand the prospects, and requirements of banks.
Opening of offshore Account depends on multiple factors, such as the type of company you own, the nature of business, nationality of the shareholders and business plan. The average time to open an account may vary from 2 weeks to 2 months.
All United Arab Emirates banks have online banking portal as well as mobile banking. You can activate and function your account using the Internet from any place in the world.
The minimum required deposit depends upon the concerned bank. The minimum deposits can range from start from 25,000 AED and up to 500,000 AED.
The following banks open accounts of UAE offshore companies: Mashreq, NOOR, Emirates Islamic, and RAK BANK.
To open an offshore bank account, a passport, proof of residence and a bank reference letter (optional) are usually required. The bank should also be informed about the source of the funds.
In the meantime, the advancing global digitalization has partially reformed the banking system, many banks are offering online administration. In order to open an offshore account, on the other hand, you are required to be present personally. Only this can offer you with the highest security while opening the bank account in UAE.
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