Offshore Investing & Banking Cyprus Is it Right for You?
The most straightforward information to help you make the right choices, find out whether its right for you.
Nowadays, the appeal of bringing your business into the international market holds profitable potentials that any shrewd business minded person must take advantage of.
Two of the best ways to do so is to engage in offshore investing and opening offshore bank accounts with international financial institutions.
These two methods of doing business internationally must be used for legal means. Keep in mind that concealing or protecting illegal activities in tax havens like Cyprus is punishable by national and international laws.
Basically, it means the keeping of funds in a jurisdiction, territory or country other than an individual's or a company's country of citizenship and/or residence.
For example, if the individual or company is domiciled in the United States or the UK, opening offshore bank accounts and availing of investment banking services in Cyprus is considered offshore investing.
There are many advantages which account for their growing popularity among businessmen.
First, these provide for significant tax reductions that are often unavailable in the country of origin. As such, greater returns on investments are possible.
Second, capitalization requirements on both the financial and documentary aspects are very easy to fulfill.
In Cyprus, companies can establish an offshore company for as little as 15,000euros with minimal requirements like the Articles of Incorporation, by-laws and resolutions as proof of existence.
Third, the opening of offshore bank accounts and other savings ventures provide for a greater sense of security by way of anonymity. Take note that the Central Bank is bound by law to non-disclosure of beneficial owners.
Fourth and often most important, there is less regulated than its onshore investing counterparts.
Type of Offshore Investments
Generally speaking, there are four basic types of offshore that can be simplified as follows:
This is usually taken to mean services in investment management provided by the bank on a personalized basis to the company or individual, with minimum requirements of $100,000. In many ways, this is synonymous with opening offshore bank accounts.
The advantages center on the fact that your funds are invested according to your profit goals instead of following standardized strategies.
This form is where one can choose the investments in a particular classification of assets without the need to study the behavior of the individual assets. Many private bankers and financial advisers will direct most of the client's assets to this area.
This is the fastest growing area among all four, thanks to the growing significance of direct private stock market transacting parallel to Internet growth.
This is probably the least profitable of the because of the fact that even high-tax countries provide for significant tax breaks for pension savings funds.
Indeed, offshore investing can be harnessed to its fullest potential in the hands of the right investment banker and tax havens.
In the European Union, Cyprus is one of the best countries to open offshore bank accounts and engage in other offshore investment activities by virtue of its favorable laws related thereto.