Saturday, March 18, 2006

Opening the offshore bank account. Economic justification

Recent misunderstanding connected with charging offshore banking service comission from the local BVI businessman’s account reminded of the reasons of higher fees on offshore business and economic justification of offshore incorporation and offshore banking.

When wisely establishing the offshore business structure, one will get:

  • on the one hand, some economy on taxes;
  • on the other hand, some additional expenses.
Usually people make prognoses on tax economy, but not everybody calculates how much additional resources creation and maintenance of this offshore business structure will take. These sums consist of many components, each of which may not seem large if taken separately. As with any business solution, it is worth to consider ALL the expenses and assure some reserve that can be foreseen before incorporating offshore business structure.

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