This is going to be a short one, but a topic I find needs to be addressed.
I am often asked about whether an offshore company can open an onshore company, and — vice versa — whether an onshore company can open an offshore bank account.
The question I always ask is — why?
Offshore Company — Onshore Bank Account
Offshore companies seeking onshore bank accounts may be doing so in hope of making their company appear more legitimate.
Suppose you have a Belize IBC and you are worried about how it will be perceived if wire funds to or from Belize when dealing with business partners or customers in onshore jurisdictions.
Yes, you can open an onshore bank account for your offshore company. If you can find a bank willing to take you on.
It may be significantly easier to form an onshore subsidiary, which opens a bank account, and shifts all profits unto your offshore company.
Onshore Company — Offshore Bank Account
An onshore company may be concerned about the stability of its banks or simply benefit from banking services available in a foreign (offshore) bank.
You are running a steadily growing company in one of the unstable Eurozone countries. In order to protect your company’s assets, you want to open a foreign bank account for your company.
This can be done, a lot more easily than the already discussed reverse. Opening an offshore bank account for your onshore company is typically quite easy.
However, it may again be beneficial to consider a separate legal entity. Whether this is a holding company, a subsidiary, or a standalone company will depend on your exact situation.
You would then transfer funds you want to protect — after declaring and paying tax — from your onshore company to your offshore company’s bank account in a preferred jurisdiction.