These forms also allow the bank to know your sources of income. Knowing your cash flow the bank will not ask you to prove the origin of the funds every time you make a transfer. Even though you have filled out a KYC form the bank may or may not at its discretion allow you to start a relationship with them. What’s the difference between your local bank and an offshore bank? Basically any service you will get locally will be available offshore. Then why open an offshore account.

Offshore banking is no longer a handy way to conceal income from illegal activities or unreported business profits. There are many justifiable monetary reasons to open an offshore bank account. As a resident in a country with an unstable political and economic history, you want your money in a safe place. The government could impose foreign exchange restrictions or there may be a bank run. A coup d’etat may make your money inaccessible. Non-residents usually pay minimal or no taxes on interest or profits from investments. Depending on your citizenship, country of residence and if you use an offshore company as the account holder you may still have to pay taxes.

Many large international banks have branches or are incorporated in tax havens. To be on the safe side, you would probably be better off not using a bank that has branches or is incorporated in your country of residence. American citizens must file an annual tax return no matter where they live and include offshore holdings. Starting July 1st, 2005, tax havens which are British ‘dependant territories’, will apply the European Union’s Saving Tax Directive of 2005. Initially this is 15% on returns of savings paid to nationals of EU Member States. Corporations are exempt from this withholding tax.

Always consult a tax specialist who has experience with the jurisdictions involved before starting your offshore tax journey. You do not want any costly surprises after you open offshore company and bank account.

David Jones is a freelance writer and world traveler who writes about the use of offhsore companies, finance and subjects in which he has apersonal interest. Offshore Banking http://www.offshoreincoporation101.com/

• Offshore banks provide access to politically and economically stable jurisdictions. This may be an advantage for those resident in areas where there is a risk of expropriation or where there is corruption within the banking system, or bank officers may become liable to the influence of or pressure from criminal gangs.
• Some offshore banks may operate with a lower cost base and can provide higher interest rates than the home country.
• Offshore finance is one of the few industries that geographically remote island nations can competitively engage in.
• Interest is generally paid by offshore banks without the deduction of tax. This is an advantage to individuals who do not pay tax on worldwide income, or who do not pay tax until the tax return is agreed, or who feel that they can successfully evade tax by hiding the interest income (which, however, is not to be recommended).
• Some offshore banks offer offshore banking services that may not be available in one's country of residence. One such example is paperless bank statements.
• Offshore banks in some countries (by law) participate in mandated bank account deposit protection insurance systems. A US person using a bank in Australia, NZ, Canada (or any EU country) would get similar deposit protection as using a US bank.
• For several people a Delaware Corporation and Bank is a great choise, though.

• Few offshore jurisdictions have depositor compensation schemes, to bail out depositors in the event that a bank becomes insolvent.
• Offshore banking has been associated with money laundering and organized crime. There is a risk of reputation being tarnished by association.
• In addition, the advantages of offshore banking may come at a high cost as the returns on some offshore banking accounts may be substantially below those of normal bank accounts.
• The fees and minimum deposits required to open and operate accounts at some offshore banks can make them inaccessible to the general public.
• Offshore jurisdictions are often remote so physical access and access to information can be difficult.

More than half a million business entities have their legal home in Delaware including more than 50% of all U.S. publicly-traded companies and 58% of the Fortune 500. Businesses choose Delaware because we provide a complete package of incorporation services including modern and flexible corporate laws, our highly-respected Delaware Courts, a business-friendly State Government, and the customer service oriented Staff of the Delaware Division of Corporations. These factors have all contributed to making Delaware a premier legal home to companies around the world.

Every year, our Governor and General Assembly work with our Courts and the Delaware State Bar Association to ensure that our legal system is the most modern, flexible and responsive in the nation. I encourage customers to look in our Newsroom to learn more about continuing improvements to our corporate statutes, the recently expanded jurisdiction of our Court of Chancery, and a 2003 poll of American businesses that ranked Delaware as the best legal system in the nation.

Since being appointed Secretary of State in 2001 by Governor Ruth Ann Minner , I have had the privilege of speaking to audiences around the world and throughout our State. At each stop I have the opportunity to share the many recent accomplishments of the Division of Corporations as follows:

• Adding innovative and customer-friendly new services such as :
  
  • 1-hour service
  • Online Access to Corporate Status and Information
  • Automated confirmation of document receipt via e-mail or fax
  • Online Tax and Annual Report filing
  • Online UCC filing
  • Delaware Corporation Laws Online
    
• Successfully handling a 40% increase in filing volumes.
  
• Reducing actual expenditures and returning $15 million of unspent funds to the State's general fund.

The credit for these accomplishments goes to the nearly 100 full-time and part-time professionals of the Division of Corporations who are dedicated to providing high-quality service to our customers around the world. We hope you'll find the answers you are looking for on this website. We encourage you to contact a Registered Agent, call our Information Center at 302-739-3073 or contact us through the Division of Corporations' e-mail service for additional information or help.

The Delaware Division of Corporations is at your service and we welcome your comments and feedback. On behalf of our entire staff, we look forward to being of service and thank you for doing business with Delaware.