Explanation of offshore banking

A lot of companies, who mainly have customers from online services, always used offshore banking systems to store their money, as it was cheaper and better when it comes to taxes. There were always less problems with offshore banks rather than with big branded European banks, and there were always two reasons why owners of internet businesses have always chosen offshore:

• Smaller fees
• Quick opening (1-5 working days)

In an offshore bank your details are not checked that thoroughly, meaning less times spent on your account opening. There are still high security levels and confidentiality, but the whole process is quicker also because there are quite a lot of offshore banks. Offshore could be explained differently, it is either any financial institution which works with you from abroad or special economical jurisdictions. But, recently we have found another explanation of offshore banking which will be easily understood by any person who has finished at least couple of classes at school.

Every time you get some money, you go and put it into a money box (piggy bank). Your money box is located on the table in your parents’ room. Every time you put or take money from the piggy bank they notice that, so that they control your cash flow. Imagine that you a grown up and don’t want your parents to know how and when you spend your own money, so you move your piggy bank to a friend house. You can put your name on it, but it doesn’t really matter what you write, because money boxes at your friend’s house never get checked. His parents are really busy, so the cash flow which goes through your money box will always be a secret.

That is basically how offshore banking works. What can happen is that some policeman comes into your friend’s house and starts to check every money box which he can find. You can be in trouble, but usually even police “kisses the door” of your friends house. That’s why with time more and more people went to a friends house to store their money there. Because then no one knows who owns the money, how it is spent and if he needs to pay taxes after all those transactions.

Offshore banking is great for most of the business models, unless you have some funds which come from the government. Our specialists can easily find a financial solution for your online business: setup a merchant account, open account in an offshore bank, integrate payment gateways and many more. Just don’t hesitate to contact us!