VIEWS: 4 PAGES: 2 POSTED ON: 8/21/2010
Overview of offshore accounts The term offshore account more and more known to everyone, but also frequently appeared in all the high line of sight, do not know if you have not thought about this stock heat hidden behind what exactly? Since the reform and opening up, Hong Kong has been a global financial center and trade center, this piece of treasure has been keen to attract the eye around the merchants, then register the upsurge of Hong Kong companies also will hit, &quot;offshore accounts&quot; will come to the fore, so This can not help it with some special background of the commercial colors! In this we have two aspects to it: ? From the finance point of view, is that depositors outside their country of residence to open bank accounts. On the contrary, people living in the deposits of domestic banks is called the shore banks or domestic banks. Hong Kong companies registered from a narrow point of view, mainly refers to a Hong Kong company outside Hong Kong banks to open accounts. For example, a Hong Kong company, like Shanghai, Beijing, Hong Kong, Singapore or so outside bank to open a bank account, which is offshore accounts; contrast, in Hong Kong to open a bank account that is local account. ? What is offshore banking? Offshore banking is a service of the financial activities of non-residents, banks absorb the non-resident funds. Target for foreign banks (including Hong Kong, Macao and Taiwan regions) of natural persons, legal persons (including the registration of overseas-invested enterprises outside China), government agencies, international organizations and other economic organizations, including the Chinese financial institutions overseas branches. Offshore banking business currency freely convertible currencies only. Remit funds offshore non-resident accounts, offshore account offshore accounts and offshore funds remitted funds between accounts and transfer free transfer. Starting from May 1989, Bank of China and China&#39;s State Administration of Foreign Exchange approval, Merchants Bank, Bank of Communications, Shenzhen Development Bank, Pudong Development Bank has set up offshore bank accounts business. After several years of development, these banking institutions to set maturing varieties growing the business to provide diversified services to more advanced methods to provide customers with a comprehensive, efficient and quality services. Offshore banking business: 1. Foreign exchange deposits 2. Foreign exchange loans 3. Interbank foreign exchange lending 4. International Settlements 5. Large negotiable certificates of deposit issued 6. Exchange Guarantee 6. Consulting, witness service 8. Approved by the State Administration of Foreign Exchange other business ? Offshore accounts set up categories: 1. HKD Savings Account 2. Foreign Currency Savings Account 3. Hong Kong dollar exchange account (checking account) 4. U.S. dollar check account 5. HK financial account 6. Foreign financial account 6. Internet account 8. Import and Export Letters of Credit (LC) Advantages and disadvantages of offshore account: Advantages: 1. The free transfer of funds: the customer that is equivalent to offshore accounts in foreign banks to open accounts, offshore accounts can be free to allocate funds from the domestic foreign exchange control. 2. Deposit rates, species restricted: deposit interest rate, variety from domestic regulatory restrictions, deposit interest rates than foreign banks similar concessions, access to flexible. In particular, large deposits, according to customer needs, in the interest rate terms are tailor-made, flexible and convenient. 3. Exempt from tax interest on deposits: Offshore deposits, the Chinese government made the deposit interest tax exempt interest. Net income is more substantial offshore deposits. 4. To improve operational efficiency inside and outside the consolidated fund: make full use of offshore banks can provide business with foreign banks while the full-service features business functions, reduce the overall cost of funds to speed up domestic and foreign cash flow, improve fund use efficiency. 5. Domestic control and foreign operations. Through online bank accounts of the offshore operation. ? Disadvantages: 1. Offshore banks are also used for money laundering by criminals, a common place, and therefore bad reputation. 2. Have a certain meaning to encourage residents to avoid or evade tax. 3. Because the residence is not the depositors, savers service possible inconvenience. 4. To open an offshore savings account the amount of the starting point is generally higher, so the main service on higher income people. ? Through the above description, we must understand the company registered in the meaning of the relevant terms and then do some of the decisions, so as to avoid unnecessary trouble!
Pages to are hidden for
"Overview of offshore accounts"Please download to view full document