1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Offshore Company Question

Discussion in 'Business & Tax Advice' started by socialmediapro, Apr 17, 2015.

  1. socialmediapro

    socialmediapro Jr. VIP Jr. VIP UnGagged Attendee

    Joined:
    Apr 27, 2013
    Messages:
    2,112
    Likes Received:
    550
    Occupation:
    Online Entrepreneur
    Home Page:
    Hello,

    I am in the process of creating an offshore company.

    I have one question: Is it okay to have an offshore company but the bank account for this company in my actual home country (european country)? I mean are there any disadvantages?

    Because lots of people say that both the company and the bank account should not be in the country where you reside in.

    Thanks for the help!
     
  2. MisterQ

    MisterQ Newbie

    Joined:
    Apr 19, 2015
    Messages:
    19
    Likes Received:
    3
    The bank account can be in your home country (at least usually, depends on local laws), but I don't see why you'd even create an offshore company if you are then keeping your funds onshore. Unless your country has some weird banking laws (which as far as I know no european countries have, except Switzerland, Lichtenstein etc), you might come under scrutiny from tax officials and get into a lot of trouble. So wouldn't recommend, with online banking it's no problem to have an offshore bank account nowadays anyways.
     
  3. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 19, 2010
    Messages:
    3,814
    Likes Received:
    973
    Gender:
    Male
    Home Page:
    If you want to setup a offshore company, for whatever reason, I would recommend you to get a offshore bank account somewhere, it does not need to be in the same jurisdiction as the company is incorporated but it should be at least at a place where you have some sort of privacy. To start banking local makes no sense at all.

    After typing the above there comes 1 reason to my mind, PRIVACY. If that's the sole reason for why you want to incorporate offshore you could do so and notify your local tax office about your company and bank local, in most European countries you can do that as an branch of that company, the tax office may have some questions for you but with a good tax lawyer it is a matter of a few hours and they shut up.