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Farewell offshore

24/ 07/ 2018
  Law Agency Absolute The era of simple and inexpensive use of classic offshore has come to an end. At least, for active transactions on transfer of funds without obvious commercial benefits and real economic activity. Chance for offshore Zero chances to open a settlement account with those companies that do not have a tax number, and are not required to file accounts. Following Latvia, some particularly stringent  EU banks and a regulator in Cyprus began to request confirmation of the companys physical presence in the country of registration. The presence of only a legal address is not enough, and the presence of a classic offshore company in the structure of counterparties may lead to a refusal to open or maintain an account. WITHOUT AN OPERATING ACCOUNT, THE OFFICIAL COMPANY IS SUITABLE, ONLY FOR DOCUMENTARY ASSETS Only a few of the European banks known to us are ready to open accounts to offshore shipping companies or companies in the holding structure.           In the overwhelming majority – these are banks with a high cost of the clients entrance (securities, deposit, minimum balance on the account), which not every client can afford.  Nevertheless, the cost of entering the bank is justified, because entails increased risks, the need for additional monitoring of activities, higher maintenance costs. However, even in the case of a positive decision to open a bank account, no guarantees long and successful working capacity. FREE DISPOSAL OF THE ACCOUNT WILL BE ILLUSORY AND WILL REQUIRE ADDITIONAL COSTS FOR THE PREPARATION OF THE RATIONALE FOR EACH PAYMENT, WHICH WILL NOT ALWAYS BE SUCCESSFULLY Deceptive Hopes In the financial market of non-residents, some banks are working that do not disdain to earn money during the period of chaos. As a rule, they take a package of documents on offshore companies, promising at the same time a successful consideration for an official additional fee. DATA OF ACTION IS NOT ADVISED BY ANY INNER POLICY OF THE BANK OR LOCAL REGULATOR. THEREFORE, AFTER RECEIVING A COMMISSION OF NON-RETURN FOR CONSIDERATION OF THE PACKAGE OF DOCUMENTS, THE CLIENT RECEIVES A REFUSAL. We also do not exclude the possibility of opening an account of an offshore company in an offshore bank. However, in this case, we draw attention to the complexity and even the impossibility of conducting transactions on such an account with many EU banks and not only. Tax frendly jurisdiction In view of the recent events, owners of offshore companies will have to restructure the business model – to choose the most comfortable tax frendly jurisdiction, which is required to file accounts and pay the minimum taxes. Visits of banks in attempts to independently discover disgraced jurisdictions allow only to delay the moment of painful, but necessary transition to a new phase of development of your business. At the same time, with every attempt to open an account for offshore jurisdiction, not only material but also time costs increase. After all, according to the standards of each bank, it is necessary to prepare a package of documents, pay a bank commission for their consideration, and also pay for the services of lawyers and intermediaries. Specialists of the Law Agency Absolute for over 10 years provides services in the field of international tax planning, consulting support for the registration of non-resident companies, interaction with foreign banks. For each client, we prepare an individual solution that meets its business requirements. We value your time and save finances!

Law Agency “Absolute”

The era of simple and inexpensive use of classic offshore has come to an end.

At least, for active transactions on transfer of funds without obvious commercial benefits and real economic activity.

Chance for offshore

Zero chances to open a settlement account with those companies that do not have a tax number, and are not required to file accounts. Following Latvia, some particularly stringent  EU banks and a regulator in Cyprus began to request confirmation of the company’s physical presence in the country of registration.

The presence of only a legal address is not enough, and the presence of a classic offshore company in the structure of counterparties may lead to a refusal to open or maintain an account.

WITHOUT AN OPERATING ACCOUNT, THE OFFICIAL COMPANY IS SUITABLE, ONLY FOR DOCUMENTARY ASSETS

Only a few of the European banks known to us are ready to open accounts to offshore shipping companies or companies in the holding structure.          

In the overwhelming majority – these are banks with a high cost of the client’s entrance (securities, deposit, minimum balance on the account), which not every client can afford. 

Nevertheless, the cost of entering the bank is justified, because entails increased risks, the need for additional monitoring of activities, higher maintenance costs. However, even in the case of a positive decision to open a bank account, no guarantees long and successful working capacity.

FREE DISPOSAL OF THE ACCOUNT WILL BE ILLUSORY AND WILL REQUIRE ADDITIONAL COSTS FOR THE PREPARATION OF THE RATIONALE FOR EACH PAYMENT, WHICH WILL NOT ALWAYS BE SUCCESSFULLY

Deceptive Hopes

In the financial market of non-residents, some banks are working that do not disdain to earn money during the period of chaos. As a rule, they take a package of documents on offshore companies, promising at the same time a successful consideration for an official additional fee.

DATA OF ACTION IS NOT ADVISED BY ANY INNER POLICY OF THE BANK OR LOCAL REGULATOR. THEREFORE, AFTER RECEIVING A COMMISSION OF NON-RETURN FOR CONSIDERATION OF THE PACKAGE OF DOCUMENTS, THE CLIENT RECEIVES A REFUSAL.

We also do not exclude the possibility of opening an account of an offshore company in an offshore bank. However, in this case, we draw attention to the complexity and even the impossibility of conducting transactions on such an account with many EU banks and not only.

Tax frendly jurisdiction

In view of the recent events, owners of offshore companies will have to restructure the business model – to choose the most comfortable tax frendly jurisdiction, which is required to file accounts and pay the minimum taxes.

Visits of banks in attempts to independently discover disgraced jurisdictions allow only to delay the moment of painful, but necessary transition to a new phase of development of your business.

At the same time, with every attempt to open an account for offshore jurisdiction, not only material but also time costs increase. After all, according to the standards of each bank, it is necessary to prepare a package of documents, pay a bank commission for their consideration, and also pay for the services of lawyers and intermediaries.

Specialists of the Law Agency “Absolute” for over 10 years provides services in the field of international tax planning, consulting support for the registration of non-resident companies, interaction with foreign banks.

For each client, we prepare an individual solution that meets its business requirements.

We value your time and save finances!

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